taiwan财务管理_lecture22(ch22)

©TheMcGraw-HillCompanies,Inc.,200122-1Irwin/McGraw-HillIrwin/McGraw-HillChapter22FundamentalsofCorporateFinanceThirdEditionMergers,Acquisitions,andCorporateControlBrealeyMyersMarcusslidesbyMatthewWillIrwin/McGraw-Hill©TheMcGraw-HillCompanies,Inc.,2001©TheMcGraw-HillCompanies,Inc.,200122-2Irwin/McGraw-HillTopicsCoveredTheMarketforCorporateControlSensibleMotivesforMergersDubiousReasonsforMergersEvaluatingMergersMergerTacticsLeveragedBuy-OutsMergersandtheEconomy©TheMcGraw-HillCompanies,Inc.,200122-3Irwin/McGraw-HillTheMergerMarketProxybattleforcontroloftheboardofdirectorsFirmpurchasedbyanotherfirmLeveragedbuyoutbyagroupofinvestorsDivestitureofallorpartofthefirm’sbusinessunitsMethodstoChangeManagement©TheMcGraw-HillCompanies,Inc.,200122-4Irwin/McGraw-HillRecentMergersYearBuyingCompanySellingCompanyPayment($bil)1999MCIWorldComSprint1151999ViacomCBS351999AT&TMediaOneGroup541999TravelersCiticorp831999ExxonMobil801999TotalFina(France)ElfAquitaine(France)551999Olivetti(Italy)TelecomItalia(Italy)581999Vodafone(UK)AirToucComm.611998BritishPetroleum(UK)AmocoCorp.481998Daimler-Benz(Germany)Chrysler381998Zeneca(UK)Astra(Sweden)351998NationsbankCorp.BankAmericaCorp.621998WorldComInc.MCICommunications421998NorwestCorp.WellsFargo&Co.34©TheMcGraw-HillCompanies,Inc.,200122-5Irwin/McGraw-HillTheMergerMarketToolsUsedToAcquireCompaniesProxyContestAcquisitionLeveragedBuy-OutManagementBuy-OutMergerTenderOffer©TheMcGraw-HillCompanies,Inc.,200122-6Irwin/McGraw-HillSensibleReasonsforMergersEconomiesofScaleAlargerfirmmaybeabletoreduceitsperunitcostbyusingexcesscapacityorspreadingfixedcostsacrossmoreunits.$$$Reducescosts©TheMcGraw-HillCompanies,Inc.,200122-7Irwin/McGraw-HillSensibleReasonsforMergersEconomiesofVerticalIntegrationControloversuppliers“may”reducecosts.Overintegrationcancausetheoppositeeffect.Pre-integration(lessefficient)CompanySSSSSSSPost-integration(moreefficient)CompanyS©TheMcGraw-HillCompanies,Inc.,200122-8Irwin/McGraw-HillSensibleReasonsforMergersCombiningComplementaryResourcesMergingmayresultsineachfirmfillinginthe“missingpieces”oftheirfirmwithpiecesfromtheotherfirm.FirmAFirmB©TheMcGraw-HillCompanies,Inc.,200122-9Irwin/McGraw-HillSensibleReasonsforMergersMergersasaUseforSurplusFundsIfyourfirmisinamatureindustrywithfew,ifany,positiveNPVprojectsavailable,acquisitionmaybethebestuseofyourfunds.©TheMcGraw-HillCompanies,Inc.,200122-10Irwin/McGraw-HillDubiousReasonsforMergersDiversificationInvestorsshouldnotpayapremiumfordiversificationsincetheycandoitthemselves.©TheMcGraw-HillCompanies,Inc.,200122-11Irwin/McGraw-HillDubiousReasonsforMergersTheBootstrapGameAcquiringFirmhashighP/EratioSellingfirmhaslowP/Eratio(duetolownumberofshares)Aftermerger,acquiringfirmhasshorttermEPSriseLongterm,acquirerwillhaveslowerthannormalEPSgrowthduetosharedilution.©TheMcGraw-HillCompanies,Inc.,200122-12Irwin/McGraw-HillDubiousReasonsforMergersTheBootstrapGameWorldEnterprises(beforemerger)MuckandSlurryWorldEnterprises(afterbuyingMuckandSlurry)EPS2.00$2.00$2.67$Pricepershare40.00$20.00$40.00$P/ERatio201015Numberofshares100,000100,000150,000Totalearnings200,000$200,000$400,000$Totalmarketvalue4,000,000$2,000,000$6,000,000$Currentearningsperdollarinvestedinstock0.05$0.10$0.07$©TheMcGraw-HillCompanies,Inc.,200122-13Irwin/McGraw-HillEvaluatingMergersQuestionsIsthereanoveralleconomicgaintothemerger?Dothetermsofthemergermakethecompanyanditsshareholdersbetteroff?????PV(AB)PV(A)+PV(B)©TheMcGraw-HillCompanies,Inc.,200122-14Irwin/McGraw-HillEvaluatingMergersEconomicGainEconomicGain=PV(increasedearnings)=Newcashflowsfromsynergiesdiscountrate©TheMcGraw-HillCompanies,Inc.,200122-15Irwin/McGraw-HillEvaluatingMergersExample-Givena20%costoffunds,whatistheeconomicgain,ifany,ofthemergerlistedbelow?CislunarFoodsTargetcoCombinedCompanyRevenues15020172(+2)OperatingCosts11816132(-2)Earnings32440(+4)EconomicGain=4.20=$20©TheMcGraw-HillCompanies,Inc.,200122-16Irwin/McGraw-HillEvaluatingMergersEstimatednetgainEstimatednetgain=DCFvaluationoftargetincludingsynergies-cashrequiredforacquisition©TheMcGraw-HillCompanies,Inc.,200122-17Irwin/McGraw-HillMergerTacticsWhiteKnight-Friendlypotentialacquirersoughtbyatargetcompanythreatenedbyanunwelcomesuitor.SharkRepellent-Amendmentstoacompanychartermadetoforestalltakeoverattempts.PoisonPill-Measuretakenbyatargetfirmtoavoidacquisition;forexample,therightforexistingshareholderstobuyadditionalsharesatanattractivepriceifabidderacquiresalargeholding.©TheMcGraw-HillCompanies,Inc.,200122-18Irwin/McGraw-HillLeveragedBuy-OutsUniqueFeaturesofLBOsLargeportionofbuy-outfinancedbydebtSharesoftheLBOnolongertradeontheopenmarket©TheMcGraw-HillCompanies,Inc.,200122-19Irwin/McGraw-HillLeveragedBuy-OutsJunkbondmarketLeverageandtaxesOtherstakeholdersLeverageandincentivesFreecashflowPotentialSourcesofValueinLBOs