Merger s And Acquisitions. Understanding Takeover s

In the dramatic world of M&As, battleground terms meld with bizarre metaphors to form the language of the game.

A transaction in which a mutual thrift institution converts to stock form and simultaneously merges into an acquiring stock thrift or bank.

Merger activity increased last week with six new deals announced and one closing.

You can find all the active deals listed below in our Merger Arbitrage Tool that automatically updates itself during market hours.

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Whenever there is a utility merger. at least one state commission. and various federal agencies (most significantly the Federal Energy Regulatory Commission ) must approve the combination. This is easier said than done. State regulators normally demand concession s from the companies.

Once completed, the listing of the company that was subject to the takeover or merger must be de-listed and the shares of that corporation are no longer publicly traded.

A merger or consolidation in which (1) the acquirer`s tax basis on each asset whose ownership is transfer red in the transaction is generally the same as the acquiree`s, and (2) each seller who receives only stock does not have to pay any tax on the gain realized until the shares are sold.

A reverse merger happens when a publicly trading company merges with a private company and the private company survives, occupying and operating in the publicly traded company’s legal shell.

FTC OKs Tobacco Merger

R.J. Reynolds (NYSE. RJR ) and British American Tobacco (AMEX. BTI ) both saw shares leap higher after the Federal Trade Commission approved the merger between BTI’s Brown & Williams on subsidiary and RJR.

Factors that make your company special or unique can often not only make the difference in a possible sale or merger. but also can dramatically increase value. Review the following to see if any of them apply to your company and if they are transfer able to new ownership.

Another of the classic hedge strategies is to buy the stock of a company that is being taken over in a merger. while short ing the stock of the company that is buying them.

A hedge fund strategy in which the stocks of two merging companies are simultaneously bought and sold to create a riskless profit. A merger arbitrage ur looks at the risk that the merger deal will not close on time, or at all.

Merger — the combination of two or more companies into one entity.

Momentum — in technical analysis. the strength behind an upward or downward movement in price. Graphically, momentum is represented as a horizontal line, which fluctuates above and below an equilibrium line.

Merger

The formation of one company from two or more previously existing companies through pooling of common stock. cash payment or a combination of both. Merger s where common stock is exchange d for common stock are nontaxable and are called tax-free merger s.

Merger

The combining of two or more companies into one, either through the purchase of one by the other, or a pooling of interest s. The resulting synergies are expected to increase the company’s efficiency.

Merger Acquisition in which all asset s and liabilities of a company are absorbed by the buyer to form a combined business entity.

Merger

Definition: When one company purchases another company of an approximately similar size. The two companies come together to become one. TeenAnalyst Advice: Two companies usually agree to merge when they feel that they can do something together that they can’t do on their own.

Merger s and Acquisitions (M&A) — a general term used to refer to the consolidation of companies. A merger is a combination of two companies to form a new company, while an acquisition is the purchase of one company by another in which no new company is formed.

The term used in a credit derivative when there is a transfer of ownership of 100% of shares of a company to another individual/entity. Acceptance of an offer is sufficient to be considered a merger event as actual completion of the merger may take months or years.

Merger. Combining two or more companies by offer ing the stock holders of one company securities in another company in exchange for the surrender of their stock .