Summary

‡ Take over
± ± ± ± ± Both companies survive Controlling Stake (not necessary more than 51%) Different from Portfolio investment Colloquially used as a synonym of Acquisition Different definitions in some countries viz. UK

‡ Merger
± Acquisition
‡ The Target company does not survive

± Consolidation
‡ Neither of the company survives

Summary ‡ Horizontal Merger ± Lipton and Brooke Bond ± ICICI Bank with BoR ‡ Vertical ± Time Warner and AOL ‡ Concentric ± Adlabs and Big flix ‡ Conglomerate ± Walt Disney and ABC (American Broadcasting company) ± Sony and Fox Pictures .

Mergers create value? ± Most have destroyed value ± Many have created enormous value .Summary ‡ Takeovers and Mergers ± Friendly ± Hostile ‡ Finance and Process ± Direct Buyout ± Leveraged Buy out through an SPV ‡ Do Takeovers.

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