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Mergers

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Midterm questions: Five questions will be selected plus the mandatory question. One or two paragraphs for each questions( 50 points). In addition, there will be one additional question which is mandatory and not disclosed here. 1) . Differentiate between the following types of mergers and acquisitions:
a. Subsidiary mergers
b. Vertical acquisitions
c. Horizontal mergers
d. Conglomerate deals

2) What impact did the Sherman Antitrust Act of 1890 have on the first merger wave? Explain why this was the case.

3) Explain some of the unique characteristics of the fourth merger wave of the 1980s. In particular, discuss the incidence of hostile deals and the use of leverage during this period.

4) How do antitrust regulators use the Hirschman-Hirfindahl index? What other quantitative tools do they use when evaluating the competitive effects of mergers? 5) What are the main types of state antitakeover laws? Describe how each works.

6. Explain the merger approval process. What happens to shareholders who do not approve of the merger when the majority necessary for approval agree to the deal? Do these shareholders have any specific rights that are relevant to the deal?

7. Contrast the first and second merger waves. In what ways were they different and how were they similar?

8. What role did investment bankers, such as JP Morgan, play in the first merger wave?

9. What were some of the unique characteristics of the third merger wave? Explain how companies used the P/E game in the third merger wave.

10. Explain the main features of Sections 13D and 14D of the Williams Act. What are the requirements and limitations that these sections place on...

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