Takeover = Assumption of control of another (usually smaller) firm through purchase of 51 percent or more of its voting shares or stock example is Cadbury by Kraft foods in 2010
Merger=Voluntary mixture of 2 firms on roughly equal terms into one new legal entity. Owners of each pre-merger firm continue as owners, and the resources of the merging entities are pooled for the benefit of the new entity. If the merged entities were competitors, the merger is called horizontal integration, if they were supplier or customer of one another, it is called vertical integration.
example of horizontal integration is Orange and T-mobile
example of vertical integration is Time Warner Incorporated ( a major cable operation) and the Turner Corporation, which produces CNN
No comments:
Post a Comment