11.What is the probable price range for an offer for Gazelle? If one of the acquirers makes an offer of $55, should the board accept it?

A)             $43 to $53                                    No

B)             $43 to $63                                   Yes

C)             $43 to $63                                    No

D)             $43 to $53                                   Yes

12.If Gazelle were to separate itself into two parts, the traditional bank and the 24/7 bank, and to sell off the 24/7 bank in a public offering, what would the action be called from the standpoint of the sale and from the standpoint of a takeover defense?

A)    Equity carve-out                          Leveraged recapitalization defense

B)    Split-off                                      Crown jewel defense

C)    Split-off                                      Leveraged recapitalization defense

D)    Equity carve-out                         Crown jewel defense

答案和详解如下：

11.What is the probable price range for an offer for Gazelle? If one of the acquirers makes an offer of $55, should the board accept it?

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Take-Over Defense

Defense Sufficient

A)                $43 to $53                                No

B)                $43 to $63                              Yes

C)                $43 to $63                                No

D)                $43 to $53                              Yes

The correct answer was D)

The probable price range is the current market price to the current price + the value of the synergies. That is, $43 to $43 + 500m/50m = $53. If they receive an offer greater than $53, the board should accept.

12.If Gazelle were to separate itself into two parts, the traditional bank and the 24/7 bank, and to sell off the 24/7 bank in a public offering, what would the action be called from the standpoint of the sale and from the standpoint of a takeover defense?

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Sale

Takeover Defense

A)    Equity carve-out                          Leveraged recapitalization defense

B)    Split-off                                      Crown jewel defense

C)    Split-off                                      Leveraged recapitalization defense

D)    Equity carve-out                         Crown jewel defense

The correct answer was D)

A public offering of a subsidiary as a stand-alone enterprise is called an equity carve-out. Using this technique to fend off a merger is known as a crown jewel defense.