Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
ITT Acquisition
The stand-alone value of ITT is $1,878 (6,000+877-999-4,000). The relevancy of the break-even point is that if stock is performing less than the stockholders' full value, they may call for the company to split apart, with proceeds returned to investors in cash, stock in spun off companies, or a combination of both. It is a possible entry point for a prospective buyer. The stand-alone value is subjective and includes expected rates of return where the historical value is objective and includes actual rates of return. ITT's value to Hilton was: 1) it was cheaper to acquire than to build, 2) acquiring ITT...
It also contained a 29% premium on the existing ITT price per share. The trivestiture had to be voted on by the board in the annual meeting, so it had not gone through. Most of the ITT board contracts were due to expire, so a new board was up for election. Bollenbach was waiting for the annual meeting to put Hilton people…
Firms with what organisational patterns are more likely to acquire existing firms? In what stage of internationalisation is acquisition more likely? Such research should not assume that such decisions are always rational. It may be that irrational factors are important at times. For example, it might be that the rush to acquire businesses in Europe prior to 1992 and to acquire companies in Asia in the mid-1990s reflected a