Scribd Logo
Carica

Benvenuto in Scribd!

  • Qsdqsdqs

    Caricato da

    qvrlenarasegt
    49 visualizzazioni1 pagina
    Interco is experiencing financial difficulties, making it vulnerable to a hostile takeover attempt. As a board member, the discounted cash flow analysis valuation range of $68-80 per share presented by the financial advisors seems reasonable based on the assumptions. However, some of the assumptions would benefit from further questions. Given these factors, advising to accept the $70 per share offer seems prudent.

    Descrizione originale:

    qdqsd

    Titolo originale

    qsdqsdqs

    Copyright

    © © All Rights Reserved

    Formati disponibili

    PDF, TXT o leggi online da Scribd

    Hai trovato utile questo documento?

    Questo contenuto è inappropriato?

    Segnala questo documento
    Interco is experiencing financial difficulties, making it vulnerable to a hostile takeover attempt. As a board member, the discounted cash flow analysis valuation range of $68-80 per share presented by the financial advisors seems reasonable based on the assumptions. However, some of the assumptions would benefit from further questions. Given these factors, advising to accept the $70 per share offer seems prudent.

    Copyright:

    © All Rights Reserved
    Scarica in formato PDF, TXT o leggi online su Scribd
    Segnala contenuti inappropriati
    49 visualizzazioni1 pagina

    Qsdqsdqs

    Caricato da

    qvrlenarasegt
    Interco is experiencing financial difficulties, making it vulnerable to a hostile takeover attempt. As a board member, the discounted cash flow analysis valuation range of $68-80 per share presented by the financial advisors seems reasonable based on the assumptions. However, some of the assumptions would benefit from further questions. Given these factors, advising to accept the $70 per share offer seems prudent.

    Copyright:

    © All Rights Reserved
    Scarica in formato PDF, TXT o leggi online su Scribd
    Segnala contenuti inappropriati
    di 1

    Corporate Finance

    Case: Interco
    1) Assess Intercos financial performance. Why is the company a target of a hostile takeover
    attempt?
    2) As a member of Intercos board, are you persuaded by the premiums paid analysis*
    (Exhibit 10) and the comparable transactions (multiples) analysis (Exhibit 11)? Why?

    3) Wasserstein, Perella & Co. established a valuation range of $68-$80 per common share
    for Interco. Show that this valuation range can follow from the assumptions described in
    the discounted cashflow analysis section of Exhibit 12. As a member of Intercos board,
    which assumptions would you have questions? Why?
    4) How would you advise the Interco board on the $70 per share offer?

    *Premiums paid analysis:

    Calculation
    Let
    Pb = price of target before deal is announced
    Pa = acquisition price
    Then
    P P
    % Premium Paid = a b
    Pb
    Method:
    Compute the average premium paid in recent acquisitions
    Given a (pre-announcement) target stock price of P0, the appropriate
    takeover price is
    (1 + Ave. Premium Paid) P0

    Potrebbero piacerti anche