Companies are : Heinz and Kraft
Choose two firms (listed on either the London Stock Exchange or the New York Stock Exchange), that were the subject of a merger-takeover activity recently (whether the merger-takeover actually materialized or not, is immaterial) to create Good Company PLC. Obtain financial data about the two firms and carry out the following analysis.
Required
Estimate the bid price (takeover price) of the target using the:
a. Comparable company analysis method.
b. Comparable transactions analysis method.
c. Using your answer from the comparable company analysis method, determine the following:
i. Target shareholder’s gain
ii. Acquirer’s gain
iii. Synergistic gains
iv. State and explain which price the bidder must pay.