Read a news announcement about a merger or acquisition of a company to perform a variety of tasks of analysis and write up your finding in a report format. The relevant case study including link to website for more details about the event will be provided on Moodle.
You will be encouraged to conduct research on the effects of the news on share price:
• Conduct in-depth background research to enhance the analysis of the acquisition event. Such research should demonstrate in-depth understanding on the working of the sector. You should set up a timeline to reflect the chronicle of events based on key dates.
• Conduct comprehensive valuation on the acquired firm prior to the acquisition announcement. Your valuation should use relevant valuation technique(s) to arrive at an appropriately discounted present value (per share) for both companies.
• Evaluate the extent of price impacts on both companies following the news announcements on acquisition. Does the movement of share price reflect the insights from Efficient Market Hypothesis (EMH)?
• Timeline: from the date of announcement to months post event announcement.
Organize your findings in a Report format according to the weight presented. The length should be no longer than 2,500 words. The minimum length of your report should be no less than 1500.
Sample Solution