Spring / February 2012

Master of Business Administration- MBA Semester 3 MF0011 Mergers and Acquisitions - 4 Credits (Book ID: B1209) Assignment Set- 1 (60 Marks)

Note: Each Question carries 10 marks. Answer all the questions.

Q1. Q2.

What are the cultural aspects involved in a merger? Give sufficient examples. Study a recent merger that you have read about and discuss the synergies that resulted from the merger.

Q3. Q4. Q5. Q6.

What are the basic steps in strategic planning for a merger? List out the defense strategies in the face of a hostile takeover bid. Take a cross border acquisition by an Indian company and critically evaluate. Choose any firm of your choice and identify suitable acquisition opportunity and give reasons for the same.

Spring / February 2012

Master of Business Administration- MBA Semester 3 MF0011 Mergers and Acquisitions - 4 Credits (Book ID: B1209) Assignment Set- 2 (60 Marks)

Note: Each Question carries 10 marks. Answer all the questions.

Q1. Q2.

Discuss the factors in post-merger integration process. What are the legal compliance issues a company has to adhere to in case of a merger? Explain through an example.

Q3. Q4.

What is the basis for valuation of a target company? Consider the following balance sheets of AA Ltd. and BB Ltd. as on 31st March 200X.
(Rs in lakhs) Liabilities Share Capital Equity Share of Rs 10 each 13% Preference Shares of Rs 10 each Reserves & Surplus General Reserve Development Allowance Reserve 200 125 40 60 Plant & Machinery Furniture Investment Current Assets, Loans & Advance Inventories Profit & Loss A/c Secured Loan 14% Debentures Unsecured Loan Fixed Deposit Current Liabilities & Provisions Sundry Creditors Bills Payable Provision for Tax 50 30 40 1215 55 30 835 1215 835 75 50 200 100 70 50 Sundry Debtors Cash & Bank balance Advance Tax 85 30 35 50 15 30 250 225 400 75 125 250 50 80 550 325 AA Ltd. BB Ltd. Assets Fixed Assets Land & Building 215 135 AA Ltd. BBLtd.

AA Ltd. takes over BB Ltd. on the above date for a total consideration of Rs 450 lakhs to be discharged fully by the issue of equity shares of AA Ltd. The market price per share of AA Ltd. as on

Spring / February 2012 the date of amalgamation is Rs 25. Prepare the balance sheet of AA Ltd. after merger, assuming it is a case of amalgamation in the nature of merger. Hint : B/S Total= Rs. 2050 lakhs

Q5. Explain the key regulatory provisions of M&A under: (a) (b) Q6. FEMA, 1999 (5Marks) Listing Agreement (5 Marks)

What are the key tax implications of demerger?