Mergers and AcquisitionsGuidelines & Cases

By

133 Prathmesh Thale

135 Sumeet Hooja

136 Jossy Thomas

137 Jamshid Roointon

139 Jomy Joseph

140 Rupali Badadare

Introduction

Mergers Types 1. Horizontal 2. Vertical 3. Conglomerate

Reasons Supporting mergers 1. Economies of Scale 2. Strategic Benefits 3. Complementary Resources 4. Utilisation of Surplus Funds

Acquisitions

Types

1. Shares

2. Assets

Difference between Mergers and Acquisitions

Joint Ventures

Regulatory approvals

Acquisition of sharesAcquisition of assetsMergers and Amalgamation

SEBI Guidelines for Acquisition

NotificationTrigger point for public offerOffer PriceContents of the public announcement

Companies Act Provisions

Sec 391 to 396

391 – Arrangements with creditors & members392 – Enforce compromises & arrangements393 – Information about compromises &

arrangements394 – Facilitation of reconstruction & amalgamation395 – Acquisition of shares of shareholders396 – Amalgamation in National Interest

Provisions under Sec 394

Transfer of Transferor Company

Allotment of shares, debentures & policies

Legal Proceedings

Dissolution

Disagreeing Members

Other

Reliance Industries Ltd. (RIL) & Reliance

Petrochemical Ltd.(RPL)About The Reliance GroupThe MergerA Huge amalgamTurnoverCreation of an integrated Oil & Petro Major

BenefitsNaptha SourceSales taxDepreciation

Idea – Escotel

About.. Idea ( Birla, TATA, AT&T) Escotel ( Escorts & First Pacific)

The Acquisition Largest acquisition in Wireless Industry Increase in total Debt of Idea

Benefits of Merger

Additional Circles Setback to Bharti – High Operational

cost Increased Customer Base Reduction in licence fees

AOL – Time WarnerAbout..AOL & Time Warner

Towards the MergerAOL & Time Warner – The ReasonsAOL & Time Warner – Basic Strengths

The MergerRole of Federal Trade Commission (FTC)Role of Federal Competition Commission (FCC)Competitors protestsM – Cap & Subscribers

Concerns addressed by the Commissions

Open AccessPreventing Interference of ‘AOL’DSL Marketing Requirements

AOL Time Warner – In Brief

After The Merger

Future for the Industry in America

Conclusion

References

Financial Management --Prasanna Chandrawww.indiainfoline.com

www.cfm-india.comwww.sebi.gov.com

www.hindubusinessline.comwww.rigzone.com

www.ril.comwww.economictimes.com

www.companiesact1956.comwww.bakernet.com

www.envestindia.comwww.cnet.news.com