Financial Times Handbook of Corporate Finance, 2nd Edition

12

THE MERGER PROCESS

IntroductionThe City Code on Takeovers and MergersAction before the bidThe bidAfter the bidDefence tacticsPaying for the target’s sharesConclusionWebsitesNotes

Introduction

This chapter focuses on two aspects of mergers. It first covers the middle stage of the merger process: that is, the deal-making stage, particularly in the circumstances of a hostile takeover. We look at the restraining rules and regulatory bodies that attempt to prevent unfairness.

Second, the chapter examines the question of what type of payment to make for the shares of the target firm. Should the acquirer offer cash, shares in itself or some other form of payment?

The City Code on Takeovers and Mergers

The City Panel on Takeovers and Mergers ...