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The case provides a detailed analysis of the course of Coats Viyella''s contested takeover of Tootal in the first half of 1991 based upon accounting data, offer and defence documents and press coverage. The case takes the form of a chronological record of the takeover with some background information provided. The appendices contain accounting data for both before and after the takeover plus a detailed chronology. The case aims to provide material for classroom discussion of the takeover process, in particular the use of defence tactics to fight off an unwelcome bid. This discussion should refer to the many academic studies on who gains and who loses in takeovers. The case also raises a number of interesting ancillary issues, such as dividend policy and dividend irrelevance, the accounting treatment of acquisitions (especially fair value adjustments) and provisions and means of payment for acquisitions.