Discussion post
This discussion question for this module has two parts. Respond to both parts to receive full credit for this assignment.
Part 1: What is a hostile takeover and what generally happens to the stock price of the firm being acquired in a hostile takeover?
Part 2: How does a hostile takeover affect the company’s stakeholders (shareholders, executives, employees, and society in general)? Is it usually beneficial or detrimental to these stakeholders? Why?
Include some news that is less than a year old that discusses an in-process or recently completed merger in your answer (i.e., provide two references). Briefly discuss the main issues in that merger and whom the merger is likely to benefit or hurt.
The ProQuest database at the Saint Leo University Library website can be a useful tool for completing this assignment. Click here for instructions on accessing ProQuest.
Hint: One way to find merger news is to use the library’s database for the Wall Street Journal and search for a recent article with the word “merger” in the title of the article.
Recommended Reading:
Corporate upgraders; Shareholder activism (2014, February 15). The Economist, 410(8874), 10.
Jensen, M. C. and Mechling, W. H. (1976). Theory of the Firm: Managerial Behavior, Agency Costs, and Ownership Structure. Journal of Financial Economics, 3,305-360.
Lo, A. (2016, August). The Gordon Gekko Effect: The Role of Culture in the Financial Industry. FRBNY Economic Policy Review. 17-42.
Post your initial response to the discussion question. You will not be able to see any of your classmates’ posts until you have posted your initial response.
If you are posting your initial response, click the Start a New Thread button.
If you are responding, click the Reply to Thread button for the thread you wish to respond to.
Image preview for”what is a hostile takeover and what generally happens to the stock price of the firm being acquired in a hostile takeover? ”
APA
475 words