...Offer and acceptance analysis is a traditional approach in contract law used to determine whether an agreement exists between two parties. An offer is an indication by one person to another of their willingness to contract on certain terms without further negotiations. A contract is then formed if there is express or implied agreement. A contract is said to come into existence when acceptance of an offer has been communicated to the offeror by the offeree. One party, the offeror, makes an offer which once accepted by another party, the offeree, creates a binding contract. The Key concepts in relation to offer and acceptance include the distinction between an offer and an invitation to treat, The case of Carlill v Carbolic Smoke ball co. is...
Words: 1755 - Pages: 8
...Nowadays many people conduct lengthy job hunts before arriving at a single offer. When two offers come along, job seekers can be taken aback, unsure how to proceed. Receiving multiple job offers can come as a surprise to employment seekers, and when faced between with two or more job opportunities It is always delicate to hesitate; and the decision is not easy to take. Nevertheless, it is very important to take a time to think which career opportunity is the better fit, given your career goals, needs, and wants. Sometimes the choice is clear, and an applicant will have no difficulty choosing one offer over another. However, in other cases, the compensation packages of two job offers could be similar and therefore cause dilemma. According a survey conducted in 2014, about employment factors, the statistic shows the most important employment factors when choosing jobs among workers worldwide in 2014 was salary, and financial incentives with 84%. But apart from the financial compensation there are many others incentives to consider before choosing a job. The first is advancement; during the survey, 62 percent of respondents said that opportunities for advancement would influence them to choose one job over another. Applicant should be looking to take the job that will advance them the furthest in their career. It’s important to capitalize on opportunities that move you forward in your professional growth and development. Secondly the hours and work-life balance. It is...
Words: 383 - Pages: 2
...Joinees target is calculated based on the number of offers released the previous month. • The KPI of salary percentile is replaced with salary percentage. • Additional scoring: Offer of profile sourced/ER by recruiter will also be considered for the ratings though it is not mandatory. KPIs in Detail There are 4 ratings only Rating 1: Very Good Rating 2: Good Rating 3: Meets Expectation Rating 4: Needs Improvement Offers The offer target for the month would be based on the number of WIP positions with the recruiter in the beginning of the month* *in case the number of WIP positions in the beginning of the month is too low or many positions were cancelled during the month, the recruitment manager would decide the offer target for the recruiter. Rating 1: % of offers is greater than 85% of the WIP positions Rating 2: % of offers is greater than or equal 75% of the WIP positions Rating 3: % of offers is greater than or equal 60% of the WIP positions Rating 4: % of offers is less than 60% of the WIP positions Joinees The joinees target would be based on the offers released the previous month* *in case of any special cases the recruitment manager would define the joinee percentage required for a 3 rating. Rating 1: % of joinees is greater than 60% of the offers Rating 2: % of joinees is greater than or equal to 50% but less than 60% of the offers...
Words: 764 - Pages: 4
...Tender offer is a play by wendy wasserstein that incorporates two characters named paul and lisa. paul is aged 35 while lisa's age is 9 years old. as the piece begins, the audiences get a glimpse of the father and daughter relationship that subsists between the two characters. The play starts with lisa singing and dancing as she eagerly awaits her father to arrive. paul, on the other hand, is painted as a father who keeps on running his errands and businesses and rarely has time for his kid. as he arrive, he tries to joke around with the daughter as a way of making up for the missed recital while busy in business meeting. this action is, however, not reciprocated by lisa as awkward tension resurface between the two characters. as the stripy...
Words: 1316 - Pages: 6
...Case Memo of Roche Group Members: Cai Aiyong, Gong Haoran, Song, Shizhong, Li Wei, Zhou, Wenjun 1. Why is Roche seeking to acquire the 44% of Genentech it does not own? From Roche’s point of view, what are the advantages of owning 100% of Genentech? What are the risks? (1) reasons and advantages are as follows: A. Genentech had become an important part of Roche’s business, representing 24% of Roche’s pharmaceutical product sales in 2008. Several of Genentech’s pioneering products achieved very strong market positions due to their medical differentiation, commanding high prices. Products originating from Genentech represented 46% of total sales of Roche’s 20 top-selling drugs on a worldwide basis. Avastin, for example, accounted for 14% of Roche’s total pharmaceutical sales in 2008. The market had many “me-too” drugs, which were similar in composition and treatment to existing products, and relatively little innovation. Given the lack of success in bringing new and innovative drugs to market, many pharmaceutical companies were also seeking to diversify from the prescription drug business by acquiring generic-drug companies. B. Genentech was increasingly coming into direct competition with Roche in several U.S. markets. In developing small molecular products, Genentech had begun to encroach on Roche’s traditional territory, while Roche was preparing to launch products in the U.S. that would compete with existing Genentech products. A merger of the two companies would...
Words: 1671 - Pages: 7
...motor and tire technologies, the trucking industry began gaining significant market share of the freight transportation business from the rail road companies. As a result, the six largest railroads in the Northeast filed for bankruptcy. In response to the failures, the Congress passed the Stagger’s Rail Act of 1980 in order to deregulate the railroad industry, which resumed the mergers and acquisitions activity. The following analysis will investigate the economics of the offer for Consolidated Rail Corporation (Conrail) by CSX Corporation (CSX) and Norfolk Southern Corporation (Norfolk). The stand-alone bidders, CSX and Norfolk would value the target, Conrail, based on its fundamentals, however if both bidders are present they would enter price wars and legal battles, therefore this would inflate the offered price for the target. In particular the acquirers have to take into account of the opportunity cost of losing the bidding war (i.e. losing significant proportion of their revenue going forward) as calculated in Question 3. According to our analysis, the value of...
Words: 5428 - Pages: 22
...acquire. If the target company is publicly traded, the acquiring company will make an offer for the outstanding shares. There are three types of takeovers: 1.1 Friendly takeovers A "friendly takeover" is an acquisition which is approved by the management. Before a bidder makes an offer for another company, it usually first informs the company's board of directors. In an ideal world, if the board feels that accepting the offer serves the shareholders better than rejecting it, it recommends the offer be accepted by the shareholders. 1.2 Hostile takeovers A "hostile takeover" allows a suitor to take over a target company whose management is unwilling to agree to a merger or takeover. A takeover is considered "hostile" if the target company's board rejects the offer, but the bidder continues to pursue it, or the bidder makes the offer directly after having announced its firm intention to make an offer. A hostile takeover can be conducted in several ways. A tender offer can be made where the acquiring company makes a public offer at a fixed price above the current market price. An acquiring company can also engage in a proxy fight, whereby it tries to persuade enough shareholders, usually asimple majority, to replace the management with a new one which will approve the takeover. Another method involves quietly purchasing enough stock on the open market, known as a "creeping tender offer", to effect a change in management....
Words: 2649 - Pages: 11
...discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org. The University of Chicago Press is collaborating with JSTOR to digitize, preserve and extend access to The Journal of Business. http://www.jstor.org Richard Roll University of California, Los Angeles The Hubris Hypothesis of Corporate Takeovers* Finally, knowledge of the source of takeover gains still eludes us. [Jensen and Ruback 1983, p. 47] I. Introduction Despite many excellent research papers, we still do not fully understandthe motives behindmergers and tender offers or whether they...
Words: 8676 - Pages: 35
...Roche’s case analysis questions 1. Why is Roche seeking to acquire 44% of Genentech it does not own? From Roche’s point of view, what are the advantages of owing 100% of Genentech? What are the risks? Answer 1: The following are the advantages for Roche which will accrue by owning 100% of Genentech: * Genentech in the current form had become an important part of Roche’s business, accounting for 24% of Roche’s pharmaceutical product sales in 2008. Several of Genentech’s pioneering products had achieved very strong market positions due to their medical differentiation, commanding high prices. Products originating from Genentech represented 46% of total sales of Roche’s 20 top-selling drugs on a worldwide basis. For example, Avastin, which was the best selling Genentech drug accounted for 14% of Roche’s total pharmaceutical sales in 2008. * Biotechnology industry around that time was much smaller and less mature than the pharmaceutical industry, but was growing much faster rate. It generated $89.7 billion in revenues in USA along. Since Genentech along with Amgen were the dominant players in the sector, it could corner a major portion of this market. * Genentech was increasingly coming into direct competition with Roche in several U.S. markets. In developing small molecular products, Genentech had begun to encroach on Roche’s traditional territory, while Roche was preparing to launch products in the U.S. that would compete with existing Genentech products. A merger...
Words: 1638 - Pages: 7
...MGMT 322 G1 INTERNATIONAL CORPORATE GOVERNANCE AND STRATEGY THE GOLDEN PARACHUTE Prepared for: Professor Toru Yoshikawa By: Matthew Lim Zhi Liang S9118245I An Introduction to the Golden Parachute When we talk about executive compensation, one topic that never fails to come up is the Golden Parachute. The Golden Parachute, as the name suggest is an executive safety net of sorts that is included in the employment contracts of senior-level executives. Basically it is a special payment – usually a lump-sum amounting to millions, that is paid in the event of a change in control of the company1. The reasons for the implementation of the Golden Parachute is something that has been constantly debated, but the most common objective, and the objective I will be focusing on in this paper is to control the behaviour of the management in the event of a acquisition2. Often times when an acquisition occurs, the management of the acquired firm will not stay with the new firm, meaning that their will not benefit from the acquisition, but would rather suffer if the acquisition occurs. As such they might be inclined to try to prevent the acquisition, and not act in the best interest of the shareholders3. The Golden Parachute serves to ensure that the management acts in the best interest of the shareholders by providing a mechanism to protect their own personal self interest. Another objective that is often talked about would be that of an anti-takeover mechanism4. The...
Words: 5130 - Pages: 21
...Case Analysis #1 After analyzing this case I have come up with, what I think are some of our main problems in our recruitment process. We have trouble persuading top candidates to accept our job opportunities because our company is not as well known yet as some of our competitors. We can attract the candidates, but too many our turning down our job offers because they are accepting offers with our competitors. The key to increasing our job offer acceptance rate is to enhance the candidates’ understanding of the company and its value proposition. Focus groups were formed with existing employees to find out what they each value about their jobs and about our company. Our “root problem” is not attracting a sufficient amount of qualified employees, but keeping those employees to accept our offers instead of our competitors. Some of the components to this “root problem” is that our company is a start-up company and because of this we are not well known, and we do not have the benefits and pay as some of our more established bigger competitors. Some alternatives to our key problems have to do with our benefits that we offer our employees. To change this we need to implement the following: 1. Provide insurance to employees after 90 days. Currently we provide no insurance to our employees at all. 2. Bonuses should be given to everyone after 90 days, based on how long they have been with our company, and a reflection of how the company is progressing. 3. A 401(k)...
Words: 430 - Pages: 2
...THE JOURNAL OF FINANCE • VOL. LV, NO. 6 • DEC. 2000 Hostility in Takeovers: In the Eyes of the Beholder? G. WILLIAM SCHWERT* ABSTRACT This paper examines whether hostile takeovers can be distinguished from friendly takeovers, empirically, based on accounting and stock performance data. Much has been made of this distinction in both the popular and the academic literature, where gains from hostile takeovers result from replacing incumbent managers and gains from friendly takeovers result from strategic synergies. Alternatively, hostility could ref lect strategic choices made by the bidder or the target. Empirical tests show that most deals described as hostile in the press are not distinguishable from friendly deals in economic terms, except that hostile transactions involve publicity as part of the bargaining process. THE PERCEPTION OF HOSTILITY in American takeovers has had important connotations in both the popular and the academic literature. Unwelcome bids are often perceived to threaten at least some of the stakeholders in target corporations, leading to extensive defensive reactions by the management of the target firm. In contrast, friendly takeovers are often seen to create synergies that make both the bidder and the target firm better off ~see, for example, Mørck, Shleifer, and Vishny ~1988, 1989!!. The distinction between hostile and friendly takeovers is also important if removing an inefficient target management team creates the gains from hostile takeovers...
Words: 20546 - Pages: 83
...law, more specifically an offer and its acceptance. Its main purpose is to discuss and apply the principles in law, relevant to the topic, as well as advice the parties on their position and legal obligations. In the following case, the offer is being made by an advertisement in a local newspaper. The law states that advertisements in general are merely an invitation to treat and not an offer, the precedent being the Partridge v Crittenden case. An invitation to treat is an action, inviting the other parties to make an offer in order for a contract to be made. It treat cannot be accepted and therefore cannot directly be converted into a contract. The reasons for the decision advertisements to be considered to be invitations to treat are various – from allowing sellers to refuse to sell a wrongly labeled item, to protecting them from legal obligation resulting from a breach of contract when they fail to accommodate all needs due to a shortage in stock or failure in the supply chain. In certain situations, though, an advert can be elevated into an offer. In order for that to happen, the wording must be unambiguous and explicit, leaving no room for negotiation. This concept was first illustrated in the Lefkowitz v Great Minneapolis Surplus Store case. Even though it wasn’t an English case, it can still serve as an example in cases with similar circumstances due to the similarities in the legal systems of the UK and the USA. Furthermore, the offers themselves can be two types...
Words: 1167 - Pages: 5
...purchase the minibuses. The next day Cheryl offered to sell the minibuses to Amy, a friend of hers, via an e-mail for a reduced price of £12,000. Amy agrees to purchase the minibuses but in her reply (via e-mail) ‘only if they are re-sprayed white’. The following week Britney accepted the purchase price of the black minibuses for £15,000 by speaking to Cheryl directly. In the meantime, Mohammed has seen the advert for the minibuses and posted his acceptance to buy them for £15,000 to Cheryl. All three parties believe that they have a contract with Cheryl for the sale of the minibuses. Advise Cheryl whether or not she has a contract with any of those three parties. [Overall: an excellent piece of work. You provide an excellent legal analysis in terms of identifying the relevant legal rules, supporting those rules with cases and applying the rules in an accurate manner to the facts of the question. Some slight errors in places - eg regarding M’s acceptance at the end – but this was corrected later] 70% Cheryl has been operating a school minibus service in Peckham for many years and she decided to retire. She then placed an advertisement in the local newspaper which read: „For Sale: 2 Black Ford Transit Minibuses £15,000‟ The scenario is that there are three...
Words: 2025 - Pages: 9
...tubing. Metal-Matic’s acknowledgment form disclaimed all consequential damages and limited liability to refund, repair or replacement. Metal-Matic expressly made its assent conditional upon Krack’s assent of the disclaimer. Krack’s purchase order did not have this provision and they never formally assented. During the ten years one of Krack’s managers objected to the terms of the disclaimer, but both parties continued to do business. In February 1981, Krack sold a unit to Diamond Fruit Growers that leaked. Rule of Law: Under the UCC §2-207 when the purchase order and acknowledgment form state different terms the additional terms are construed as a proposal and become part of the contract unless: The offer expressly limits acceptance conditional on assent to the terms of the offer. Issue: Are the additional terms of Metal-Matic’s disclaimer of liability part of the contract when its agreement is expressly conditioned on its assent to the additional terms? Decision and Opinion: One application goal of the UCC§2-207 is aimed at commercial transactions where parties exchange printed purchase order and acknowledgement forms. Since the drafters of the UCC understood that forms were drafted leaning toward the thinking of the drafters and often the forms do not correspond. UCC §2-207 provides rules of contract formation in these instances where forms do...
Words: 666 - Pages: 3
