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This Topsy-Turvy World
Sep. 8th, 2004 02:39 amLet's play the parallel situation game. First, you own a company called, say, Happycorp. And a big part of the appeal of Happycorp to investors is how TOTALLY RICH THEY'LL BE if you ever go the merger route.
Naturally, there's a lot of speculation that you will, and if so, when.
Suddenly, a rumor breaks out: Supershops Inc. seem willing to merge! This titanic pairing would dominate the market and make everybody billions! Thinking about it yourself, it doesn't seem a bad company to merge with--Supershops is a major competitor and both companies might very well benefit from a merger.
During a meeting with your executive officers, you mention that it's nice to hear Supershops Inc. might be interested. It makes the whole merger business a bit more appealing.
Things seem to be going well--stock is up, and all the analysts are predicting continued gains. But then someone uses one of Happycorp's servers to post a statement to the Internet that you've announced your intent to acquire Supershops. While you were certainly open to the idea, you don't appreciate your hand being forced, and you definitely hadn't made up your mind either way yet. Furthermore, after a brief visit to a Supershops plant, you've come to the conclusion that these two companies have completely different corporate cultures, so a merger is likely to force changes in either your holdings or in Supershops'. Considering all this, what do you do?
Naturally, there's a lot of speculation that you will, and if so, when.
Suddenly, a rumor breaks out: Supershops Inc. seem willing to merge! This titanic pairing would dominate the market and make everybody billions! Thinking about it yourself, it doesn't seem a bad company to merge with--Supershops is a major competitor and both companies might very well benefit from a merger.
During a meeting with your executive officers, you mention that it's nice to hear Supershops Inc. might be interested. It makes the whole merger business a bit more appealing.
Things seem to be going well--stock is up, and all the analysts are predicting continued gains. But then someone uses one of Happycorp's servers to post a statement to the Internet that you've announced your intent to acquire Supershops. While you were certainly open to the idea, you don't appreciate your hand being forced, and you definitely hadn't made up your mind either way yet. Furthermore, after a brief visit to a Supershops plant, you've come to the conclusion that these two companies have completely different corporate cultures, so a merger is likely to force changes in either your holdings or in Supershops'. Considering all this, what do you do?
