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!

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