Take Overs + Acquisitions
- Created by: Jess
- Created on: 01-12-12 19:26
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- Take-Overs & Acquisitions
- Apply to PLC's.
- When another party purchases the majority of shares in another business
- 3% - must make a declaration to the stock market
- 51% but can be a lot less due to the highest amount
- Reasons
- asset *********
- sell off the profitable sections and close the rest
- quick growth
- defensive reasons
- synergy
- economic changes
- reduce competition
- can be cheaper than growing internally by organic growth
- asset *********
- Impact on different stakeholders
- employees
- job loses
- greater job prospects
- asset *********
- disagree with ethics
- insecurity
- customers
- higher prices
- reduced choice
- economise of scale - reduced prices
- insecurity
- managers
- insecurity
- increased stress
- asset *********
- employees
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