Class Meeting session and Days

Topics

Projects and other Deadlines

Session 1
July 7, 2-5:30 pm

Theme: Why do firms merge?
How to analyze a merger strategically
Introduction and Strategy
Class Notes
Slides on Introduction
Slides on Strategy
Class Exercise: Analyze mergers from "Recent Mergers and Combinations"

To read: Bruner, Chaps 3, 4, 6 and 7
Reading Assignment for next class: Read document “Some Recent Mergers”
Think of how you would classify these mergers – as horizontal, vertical or conglomerate mergers.
Think of the rationales underlying these mergers.
Assignment to hand in: Write a two page document (one document per group) to be handed in at the beginning of the next class

Session 2
July 10
9:30a -1 pm
W514

Theme: How do we value a firm?
Valuation and Synergies
Class Notes
Slides on Valuation
Slides on Synergies
In class problems (Problems 9.4, 9.5 and 9.9 from workbook; problem 11.6)

To read: Bruner, Chaps 9, 11;

Reading Assignment for next class: Read document “Anadarko/ Kerr-McGee/ Western Gas mergers."
Think of how the deal has been structured.
Assignment to hand in: Value the Kerr-McGee corporation; does the price that Anadarko has agreed to pay for Kerr-McGee make sense?
(No more than two pages with appendices showing your valuation, preferably in Excel format)

Session 3
July 12
9:30 a -1 pm

Theme: How do design the deal?
Class Exercise: Structuring Deals for mergers from "Recent Mergers and Combinations"
Slides on Deal Design
Slides on Risk Management

Bruner, Chaps. 18, 20 and 23;

Reading Assignment for next class: Read up on the Arcelor Mittal case from the document “Some recent mergers.”
Also look over the Mittal Exchange Offer document.
Read the chapters from the book, “Going for Broke,” (on Blackboard)

Session 4
July 13
9:30 a -1 pm

Theme: What to do if the target doesn’t want to be taken over?
Hostile Takeovers
(Slides on Hostile Takeovers)
Class Exercise: In class problem (Problem 32.6, 32.8 from workbook)

Bruner, Chap 32, 33

Assignment for next class: Read about the NYSE/Archipelago merger.

Think of the following questions:

• Are there synergies between NYSE and Archipelago?
• Is there a conflict of interest for Goldman in representing both NYSE and Archipelago?

Session 5
July 17
9:30 a -1:30 pm
W514

Talk by Mr. Robert Power, Vice President, NYSE
Exam