It is proper to present a business definition of merger as it found on legal reference with the ultimate goal in the pursuing of an explanation on which this paper intents to present. A merger in accordance with the textbook is legally defined as a contractual and statuary process in which the (surviving corporation) acquires all the assets and liabilities of another corporation (the merged corporation). The definition go even farther to involve and clarify about what happen to shares by explaining the following; “the shareholders of the merged corporation either are paid for their share or receive the shares of the surviving corporation”. But in simple terms is my attempt to define as the product or birth of a corporation on which typically extends its operation by combining with another corporation. So from two on existence corporations in the process it gets absorbed into becomes one entity. The legal definition also implied more than meet the eye. The terms contractual and statuary, it implied a process on which contracts and statuary measures emerge as measures to regulate, standardized, governing or simply at times may complicate whole process. These terms provide an explicit umbrella and it becomes as part of the agreement formulating or promoting a case for contracts to be precedent, enforced or regulated in a now or in the future under a court of law under the Contract Business Law Statue of Practice. As for what happens to the shares of the involved corporations no more explanation is needed as the already actions mentioned clearly stated of the expectations of a merge’s share involvement.
The purpose of this paper is to attempt to recompile information about the merger of two corporations; one of many taking places i...
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...ness Law Today: 8th Edition-Miller & Jentz-Thomson (2008) Textbook
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In the year of 2005, the companies eventually found a way to make it easier for the companies to combine without having any major issues or problems. Unfortunately, around the year of 20010 the merging com...
Wells Fargo account fraud scandal One of the most recent white-collar crimes involved Wells Fargo, a banking and financial services provider. In 2016, San Francisco-based bank Wells Fargo (WFC) employees secretly created millions of unauthorized bank and credit card accounts without permission of their customers. Opening about 1.5 million fraudulent deposit accounts and submitting 565,443 credit card applications allowed Wells Fargo employees to boost their sales targets and receive bonuses. Consequently, customers were wrongly charged fees for accounts they did not know existed. In this business crime scenario, Wells Fargo is involved in paying $185 million in fines and refunding $5 million to affected customers.
According to the Mergers and Acquisition Law, there are several issues like fair trade, due diligence, merger and acquisition deals and cross-border regulations, all of which must be followed for being and continuing as merged business for Bournemouth and Poole.
This article is concluding that the choice of leadership succession is not important in how the merged company fares thereafter, even in such an extreme case as a mergers of equals. Nonetheless, the high failure rate of mergers remains, and so research should shift attention to other salient factors such as cultural and operational integration (Cheng, 2012). This article is supporting iGate Patni because, instead focusing about the choice of leadership succession, IGate focused on the factors such as cultural and operational integration which is the reason for their successes in merging with Patni.
Two different phenomena are described by the term merger and acquisition. A merger is a combination of two corporations in which only one survives and the merged corporation goes out of existence. It is a unification of two or more firms into a new one and thus characteri-zed by the fact that after unification there are fewer firms than before. On the contrary can the target firm after an acquisition either remain autonomous or be partially and/or wholly integrated into the new parent company. However, from a legal point of view the firms remain independent entities.
A merger is a partial or total combination of two separate business firms and forming of a new one. There are predominantly two kinds of mergers: partial and complete. Partial merger usually involves the combination of joint ventures and inter-corporate stock purchases. Complete mergers are results in blending of identities and the creation of a single succeeding firm. (Hicks, 2012, p 491). Mergers in the healthcare sector, particularly horizontal hospital mergers wherein two or more hospitals merge into a single corporation, are increasing both in frequency and importance. (Gaughan, 2002). This paper is an attempt to study the impact of the merger of two competing healthcare organization and will also attempt to propose appropriate clinical and managerial interventions.
Conglomerate mergers result in joining of firms which compete in different product markets, and which are situated at different production stages of the same or similar products. That is to say, neither the products nor the inputs of these merging firms are the same. Conglomerate mergers result in significant advantages gained by the merging firms since they are the fastest means of entry into different activity fields in the shortest possible time span. Moreover, they reduce the financial risks by “not putting all the eggs in one basket” (Gaughan, 2007). There are three types of conglomerate mergers:
Empowerment is commonly confused with incentivizing employees. In many cases, there are no consequences for employee empowerment gone wrong, but some actually have severe consequences for the business. A recent example of this phenomenon is the Wells Fargo fiasco. Wells Fargo employees were incentivized in a way that made them behave unethically to meet standards and gain rewards. This skill application, will discuss Wells Fargo could have used other methods of empowering and engaging employees, which probably would have had a less harmful effect on their business and how they should act in the future.
Toronto-Dominion Bank, CIBC agreed to merge with the Canadian government in 1998. However, on the recommendation of then Paul Martin, Minister of Finance, blocking the merger - as well as another by Bank of Montreal and Royal Bank of Canada - as not in the interest of Canadians.
In this paper I will identify and analyze the Wells Fargo scandal as it pertains to the breakdown of leadership and ethics. I will first identify and analyze the event and discuss the challenges and conflicts the scandal presented. Then I will evaluate the issue by explaining why the issue has interest and concern to stakeholders followed by discussing the challenges presented to individuals and/or organizations around this case. Lastly, I will recommend action steps that should be taken to those involved as well as discuss what I have learned from exploring this topic.
...dditionally, the merger can take place in smaller phases. For instance the first phase may include change of the physical look of the branches and the signage - – so as to convey a consistent view and experience for its customers. This phase may also include effective communication to the employees to educate them about the merger, ensure them of their positions and encourage them to participate in the merger. Second, the firm can totally combine the bank’s technology and the information systems which will allow the merged firm to operate as a single entity and to become fully operational. The management should implement the merger with care and prudence, aiming for minimal disruption for the customers and should communicate extensively to ensure all its stakeholders are kept fully informed as they make changes.
A merger is a transaction involving or more corporations in which stock is exchanged, but from which only one corporation survives. Mergers usually occur between firms of somewhat similar size and are usually “friendly”. The resulting firm is likely to have a name derived from its composite firms.
Mergers usually take place when companies are struggling on their own, but find hope and comfort in uniting with another company. This unite is a great way to create new companies, combine revenues, establishing new policies, procedures, and objectives. It also opens up new doors, and allows new companies to expand in so many different aspects of their business. Part of the mergering phrase should include the planning process to assist with determining the objectives of the business’ long term investments goals. This could also open up the door for new products, new machinery, new plants, replacement of machinery, new locations, new projects, as well as the tangible and intangible things both companies already have.
As the world gets more global Companies do their best to raise their profits and survive in the competition. Companies may have to grow to survive, and one of the best ways to grow is by merging with another company. However, some merges may disbalance the development of market and disrupt the balance of current market structure. Perfect example is the Daimler and Chrysler merger it is such poweful global corporation that has its activities all around the world. It can use its strong position to influence the decisions of a government. If a government disagrees with the proposals, the corporation can easily move its bussines to another country this will lead to higher unemployment in the country so the government can not allow this and is forced to make a trade-off. Nowdays some corporations have bigger powers than some governments and therefore it is harder to resist the influence of the corporations. Mergers also lead to a decrease in competition in a market, this means higher prices and less choises for consumers. The European Union is trying to prevent that companies become too powerfull and that is why firms who seek to raise their profits through merger, must attain European commissions (EC) approval. In this paper I will focus on the Volvo/Scania merger case. Firstly I will explain what is merger, the benefits of firms to conduct merger and the effect of merger to market. Secondly I will briefly describe the two companies which are involved in the Volvo/Scania merger. Finally, I will explain why did the EC blocked this merger.
...n stage, yet firms often fail to recognise or do anything substantial in the post merger stages. Perhaps the reason why this norm is still followed by many organisations is because so much potential, energy and capital is wasted on acquiring the target firm that there is little motivation or initiative left to formulate a plan and implement the union of employees and cultures subsequent to the merger. In the absence of an appropriately designed integration process or its successful execution, mergers and acquisitions will not be able to accomplish their full potential nor will the projected synergies materialise. Therefore, it is necessary to bear in mind that successful mergers and acquisitions are neither an art nor a science, but a procedure and to yield positive results, it is crucial to understand the merger process itself when analysing its effect and outcome.