FIN321

1. An acquisition method in which the acquiring firm exchanges its shares for shares of the target company according to a predetermined ratio.
3. A merger combining firms in unrelated businesses.
7. A corporation that has voting control of one or more other corporations.
8. The firm in a merger transaction that the acquiring company is pursuing.
9. The companies controlled by a holding company.
11. The activities involving expansion or contraction of a firm’s operations or changes in its asset or financial (ownership) structure.
13. A takeover defense in which the target firm finds an acquirer more to its liking than the initial hostile acquirer and prompts the two to compete to take over the firm.
14. A merger transaction endorsed by the target firm’s management, approved by its stockholders, and easily consummated.
15. The ratio of the amount paid per share of the target company to the market price per share of the acquiring firm.

2. The combination of two or more firms to form a completely new corporation.
3. A merger in which one firm acquires another firm that is in the same general industry but is neither in the same line of business nor a supplier or customer.
4. A merger transaction that the target firm’s management does not support, forcing the acquiring company to try to gain control of the firm by buying shares in the marketplace.
5. The firm in a merger transaction that attempts to acquire another firm.
6. A merger of two firms in the same line of business.
10. A merger in which a firm acquires a supplier or a customer.
12. The combination of two or more firms, in which the resulting firm maintains the identity of one of the firms, usually the larger.