They are looking to get Cooper industries essay most money out the stocks that they can and so price is of primary importance in bargaining with them.
Cizik recommend that the cooper management do? What are the concerns and what is the bargaining position of each group of Nicholson stockholders? Porter bought their shares with the intention of taking over Nicholson themselves, however as they were unable to acquire enough shares to buy the company they are now looking to sell their shares.
These shareholders may be swayed to buy or not to buy based on what the Nicholson family and management suggested they do.
They are also interested in more than simply the price. Cooper would therefore need to offer to exchange stock with them giving them a stake in the combined companies.
Due to the strengths of its products and distribution system they should be capable of raising growth rates to the industry average.
Due to this influence, the Nicholson family and management have a greater bargaining position then their shares alone command.
The speculators and unaccounted for shareholders will also be concerned primarily with price. However, they also want to be able to quickly liquidate their stocks and so would prefer to receive cash.
The management and family are further most likely not willing to sell the majority of their shares for cash as they wish to remain involved in the company and have a stake in it.
The company is further desirable to Cooper as the two companies sales forces could be combined leading to cost savings. Cooper will need to promise that the Nicholson firm will have autonomy within Cooper Industries following the takeover.
What is the maximum price that Cooper can afford to pay for Nicholson and still keep the acquisition attractive from the standpoint of Cooper? It is unlikely that Cooper will be able to acquire the company without the support of management, and as they have always in the past made friendly mergers they would like to continue to do that.
As Cooper Industries sells more of their product to industry and Nicholson to the consumer market by combining the companies they may be able to increase sales of both product lines to the market segment they are weaker in.
They would obviously like to do this profitably if possible and their primary concerns are therefore the price and liquidity. If you were Mr. Therefore, Cooper will have to offer at least this amount to the other shareholders. Nicholson is also a leading company in their markets and it is a stable company in terms of not being dependent on a few major customers.
They have established three criteria that potential companies for acquisition must meet and Nicholson meets all three criteria.
What must Cooper offer group in order to acquire its shares? They have acquired a number of companies and have been successful in integrating them into Cooper Industries. As VLN is competing to take over Nicholson it is unlikely that would be willing to sell their shares to Cooper for any reasonable price.
Though they have expressed that convertible preferred stock would be acceptable as they know Cooper stock is stable and is easily tradable being on the New York Exchange.
They will also have to work with the management to resolve any other worries they have concerning being integrated into Cooper, such as what job positions will be available to Nicholson management.
Cizik should make an attempt to gain control of the Nicholson File Company. Though they would appreciate more liquid payments, they would most likely not be as concerned with this as Porter as many of them will not be specifically looking to get rid of their stock right away.
Therefore, one of the best ways to reach these shareholders may be through the management. Cooper Industries has been pursuing a policy of expansion through the acquisition of other companies and this strategy appears to be working well for them.
Capital expenditures were assumed to equal depreciation and it was assumed working capital was not growing. As this price and form of payment, stock options, seems acceptable to both Porter and Nicholson management, we can conclude that this amount would also be accepted by a significant number of the other shareholders, especially if they are encouraged to accept the deal by management.Cooper Industries Inc.
Based on the given information in the case study regarding the acquisition of Nicholson File Company by Cooper Industries, there is no question that Cooper should try to gain control of Nicholson. Cooper basically purchased every company that is vital to its energy industry and all the side industries that effect it.
From tools to fuses to cables to the drilling equipment was manufactured and distributed by the corporation’s divisions. Sample Answer For Cooper Industries Case Study Cooper Industries Inc. is the manufacturer and leading producer of engines and big compressors for oil and gas. Fate: James Fenimore Cooper and Cooper Essay example “Fenimore Coopers Literary Offences and Fenimore Cooper’s Further Literary Offences” By: Mark Twain As it’s title, “Fenimore Cooper’s Literary Offences,” has already suggested, its writer Mark Twain relentlessly criticizes James Fenimore Cooper and denies in intelligence on literature.
Cooper’s Creek's Export Analysis Essay - Executive Summary Cooper’s Creek wine is a fine New Zealand export which is seeking to expand further into Asia. Three countries were chosen based on their markets, policies and importing needs for wine.
Cooper Industries has been pursuing a policy of expansion through the acquisition of other companies and this strategy appears to be working well for them. They have acquired a number of companies and have been successful in integrating them into Cooper Industries.Download