Strategic Decisions and Corporate-Level Strategy 2 Learning Outcomes 1 Identify alternative directions for strategy, including market penetration or consolidation, product development, market development, and diversification Recognise when diversification is an effective strategy for growth Distinguish between different diversification strategies related and unrelated and identify conditions under which they work best 3 Learning Outcomes 2 Analyse the ways in which a corporate parent can add or destroy value for its portfolio of business units Analyse portfolios of business units and judge which to invest in and which to divest 4 What is a Corporate Parent?
But in a rare two-stage deal Safran must first convince ordinary investors, who hold 68 percent of the company, to sell their shares in the company for cash. If more than half of those investors accept, the deal will proceed to the second phase. This would offer the handful of families with historic ties a chance to keep shareholdings and industrial links while maintaining longstanding tax breaks - key to getting the families on board.
The dual deal structure reflects how Safran is caught between the need to make the deal attractive to markets and keep long-term investors on board. Safran, which is 14 percent owned by the French state, wants to create a new aerospace champion and the tax umbrella reflects the policy of successive governments to smooth the path for such deals.
Without that structure, the Safran deal with Zodiac would collapse, legal experts and people involved in the deal said. A Zodiac spokesman and Safran spokeswoman both declined to comment on the discussions.
But the unusual split structure has puzzled some ordinary Zodiac investors, who could collectively block the deal, according to people briefed on the discussions. It does not allow shareholders outside the core group to exchange their own Zodiac shares for stock in the new Safran.
Why exclude us from the club? The analyst said he had been told this by his clients who are investors in Zodiac. That is not the reason bringing the two firms together, but is one factor Safran hopes will prevent the deal falling apart.
After five weeks of intensive and secretive talks, held in rented rooms and protected by code names, the two companies last week unveiled a deal designed to satisfy two very different shareholder bases.
Their offer aimed to reconcile two red lines: And Safran wanted to avoid just taking majority control of Zodiac with a large minority block in place that might make it harder to get synergies needed to justify its tie-up with a company only just emerging from industrial problems.
Finally, Zodiac Chairman Didier Domange stressed the families wanted to stay involved industrially with Safran.
The families also made concessions. They will be locked in for two years, limiting options at a volatile time, and the deal is structured to give them a slight discount. On Tuesday the merger ratio, 0.
While embracing Zodiac as an industrial partner, Safran appears to be gambling that the risk of Zodiac shares dropping sharply if the deal fails, with no new partner for the industrially stretched company in sight, will bring in votes.
Under the merger, the French state plans to join a pact with the current core shareholders in Zodiac, which employs 7, workers in France. Some analysts view the state with suspicion.
Two days before the deal became public, its four main architects - the CEOs and chairman of both firms - visited the Elysee palace to talk to President Francois Hollande.
But while Hollande later welcomed the creation of a French aerospace giant, securing jobs ahead of elections in April, insiders said the government only joined talks in the final stages and did not try to steer the deal one way or the other.Strategic Choices 7: Strategic Decisions and Corporate-Level Strategy - PowerPoint PPT Presentation The presentation will start after a short (15 second) video ad from one of our sponsors.
Re- Engineering of banking sector through Merger & Acquisition driven by the urge to gain synergies in their operation, derive economies of scale and offer one- which create target and source banks for the M&A were also not discussed in the literature works.
Exclusive: Zodiac family silver key to $9 billion Safran tie-up. Reuters. 24 January the two companies last week unveiled a deal designed to satisfy two very different shareholder bases. Tax is not the only issue, people involved in the talks said. Zodiac's core shareholders were also unwilling to fritter away double voting rights.
The survey's main findings are considered further here. These businesses were selected on the basis of four criteria which, in the absence of clear definitions of multifunctionality For other diversifications. Economies of scope not a sufficient basis for diversification—must be supported by transaction costs in markets for resources.
Synergies from sharing resources across businesses (common distribution facilities, brands, joint R&D) These were independent companies and the stock of each were . Like many other nations India’s highly developed transportation system has played a very important role in the development of the country’s economy over the past to this day.
One can say that the automobile industry in the country has occupied a solid space in the platform of Indian economy.