Product details

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Abstract

This is the second of a two-case series (293-003-1 and 293-004-1). In part two the focus is on HSBC Holdings'' acquisition offer for Midland Bank. It involves the valuation of HSBC''s and Lloyds Bank''s offers and theoretical questions of the valuation of target companies'' shares under a paper exchange. Dilution of earnings and transfer of shareholder value as the result of the takeover are interesting aspects and an evaluation is made. Finally, the reaction of the stock market to the takeover terms is assessed.
Location:
Industry:
Size:
GBP100,000 million (HSBC and Midland)
Other setting(s):
1992

About

Abstract

This is the second of a two-case series (293-003-1 and 293-004-1). In part two the focus is on HSBC Holdings'' acquisition offer for Midland Bank. It involves the valuation of HSBC''s and Lloyds Bank''s offers and theoretical questions of the valuation of target companies'' shares under a paper exchange. Dilution of earnings and transfer of shareholder value as the result of the takeover are interesting aspects and an evaluation is made. Finally, the reaction of the stock market to the takeover terms is assessed.

Settings

Location:
Industry:
Size:
GBP100,000 million (HSBC and Midland)
Other setting(s):
1992

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