Cooper Industries Proposal to Acquire Nicholson File Company

There is no doubt that Cooper will try to manage Nicholson based on Cooper Industries Inc.'s case study of Nicholson File Company and Cooper Industries obtaining specific information. This decision is based on an analysis of the negotiations of each group of Nicholson shareholders. In addition, appropriate payment methods and specific dollar values ​​were determined based on competitor estimates and Cooper's financial data.

With the various strategies and integration issues of Nicholson File Company and Cooper Industries in mind, we do not have a small problem, but we believe it should be a good acquisition goal for Cooper. Next, with reference to the evaluation of Nicholson File Company, Cooper understands the price to pay for the acquisition of Nippolson File Company per share. Currently, the company pays a dividend of $ 1.6 per year. M & M theory thinks dividend policy is not important. Therefore, Nicholson's expected capital appreciation plus a fixed dividend of $ 1.6 is equivalent to a 6% annual dividend growth annually, starting with a dividend at time t = 1, D1 = 1.6.

Currently, the company is developing an acquisition strategy of Nicholson File Company. The previous attempt failed in 1969. Again, in March 1972, Cooper had been afraid that Porter would attack them if he understood Cooper's attempt, so he had to withdraw with the offer of H. K. Porter. Porter offers $ 42 per share of Nicholson shares, but it is only 133,000 shares, not 249,000 shares required to acquire a majority share. The current situation in May 1972 is that the management team of Nicholson has recommended VLN companies to implement a friendly merger. If this VLN agreement is passed, Porter is worried that their investment will lose value. They asked Cooper for the acquisition of Nicholson and promised to assist in exchange for Cooper's stock trading.

Cooper Industries Heavy Equipment Manufacturer. As part of its expansion plan, we acquired many companies in the past. Cooper is a leader in business, has a large market share, acquired a company that is the leader of the business. Currently, Cooper focuses on building a hand tool business in a product line that uses a common sales management system and co-advertisement. In this effort, Cooper acquired Lufkin Rule Company, Crescent Niagara Corporation, and Weller Electric Corporation.

Cooper Industries has acquired more than 60 manufacturers for more than 30 years and has expanded the size and scope of the company. Most of the acquiring companies allowed Cooper to be independent from the external environment and fully manage the manufacturing processes related to the business while avoiding violations of the antitrust law. Cooper basically acquires all the companies important for its energy industry and its energy industry. It is manufactured and distributed by the company's department from tool to fuse, cable to drilling equipment.