Current Events 2 Mergers and Acquisitions
So last time… <ul><li>We discussed change in leadership and how that is not always a bad thing </li></ul><ul><li>So now we...
Mergers and Acquisitions Big words for changes in the companies
What are they? <ul><li>Merger: When 2 companies combine to form a new company  </li></ul><ul><li>Acquisition: When one com...
Lets look at a Merger! <ul><li>United Airlines and Continental  </li></ul><ul><li>http://www.guardian.co.uk/business/2010/...
Pros and Cons  <ul><li>Helps capture a bigger section of the market </li></ul><ul><li>Get to use each company’s advantages...
Let’s look at an Acquisition  <ul><li>Pfizer buys King? </li></ul><ul><li>http://www.bloomberg.com/news/2010-10-12/pfizer-...
Pros and Cons  <ul><li>Helps company taking over to expand  </li></ul><ul><li>Keeps the company being taken over out of ba...
So… how does this affect Stock Price? Well, let’s see…
You tell me <ul><li>Go to finance.yahoo.com </li></ul><ul><li>Look at the following tickers </li></ul><ul><ul><li>UAL – Un...
You tell me #2 <ul><li>Look in the news for investor predictions </li></ul><ul><li>Check to see what they are saying and m...
The End Come back next meeting with your conclusions!
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Current events ppt 2

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Mergers and Acquisitions

This time, we're looking at various companies and how mergers and acquisitions have changed their stock price as well as investor outlook

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Current events ppt 2

  1. 1. Current Events 2 Mergers and Acquisitions
  2. 2. So last time… <ul><li>We discussed change in leadership and how that is not always a bad thing </li></ul><ul><li>So now we’re talking about a change in the company itself!!!!!!!!!!! </li></ul>
  3. 3. Mergers and Acquisitions Big words for changes in the companies
  4. 4. What are they? <ul><li>Merger: When 2 companies combine to form a new company </li></ul><ul><li>Acquisition: When one company buys out another company to make themselves bigger </li></ul>
  5. 5. Lets look at a Merger! <ul><li>United Airlines and Continental </li></ul><ul><li>http://www.guardian.co.uk/business/2010/sep/17/united-continental-merger-agreement </li></ul><ul><li>So both are working together to make more revenue and capture more of the market </li></ul>
  6. 6. Pros and Cons <ul><li>Helps capture a bigger section of the market </li></ul><ul><li>Get to use each company’s advantages to benefit </li></ul><ul><li>Employees may have to be let go </li></ul><ul><li>Finance may have to be combined which is an issue when dealing with debt </li></ul>
  7. 7. Let’s look at an Acquisition <ul><li>Pfizer buys King? </li></ul><ul><li>http://www.bloomberg.com/news/2010-10-12/pfizer-agrees-to-purchase-king-pharmaceuticals-for-3-6-billion-in-cash.html </li></ul><ul><li>One is buying the other out, so really only helps the one company </li></ul>
  8. 8. Pros and Cons <ul><li>Helps company taking over to expand </li></ul><ul><li>Keeps the company being taken over out of bankruptcy </li></ul><ul><li>Once again, jobs at risk, even CEOs of King aren’t guaranteed jobs </li></ul><ul><li>Might not be approved by government which is trying to stop monopolies </li></ul>
  9. 9. So… how does this affect Stock Price? Well, let’s see…
  10. 10. You tell me <ul><li>Go to finance.yahoo.com </li></ul><ul><li>Look at the following tickers </li></ul><ul><ul><li>UAL – United Continental Holdings (check to see how it’s doing after the merger) </li></ul></ul><ul><ul><li>PFE – Pfizer </li></ul></ul><ul><ul><li>KG – King Pharmaceuticals </li></ul></ul><ul><li>Observe them a while, and lets see how the stocks change based on the new events </li></ul>
  11. 11. You tell me #2 <ul><li>Look in the news for investor predictions </li></ul><ul><li>Check to see what they are saying and more importantly why they are saying it </li></ul>Hahaha!!!! Gotcha!!!!
  12. 12. The End Come back next meeting with your conclusions!
  1. ¿Le ha llamado la atención una diapositiva en particular?

    Recortar diapositivas es una manera útil de recopilar información importante para consultarla más tarde.

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