The Student Room Group

Anyone who study in US are interested in mergers and acquisitions ?

SAMPLE EXAM QUESTION
1. Your law firm represents Acme Widget Corporation (“AWC”), a publicly-traded Delaware corporation. The Acme family owns 2 million shares of AWC’s common stock, representing 20% of AWC’s outstanding common stock. No other stockholder owns more than 10%. The board of directors consists of AWC’s Chairman and CEO, Joe Acme, AWC’s President, Bob Acme (Joe’s brother), and three independent, non-employee directors.You receive a call from Joe Acme about a new venture that AWC has been considering. Initially, AWC intends to invest $8 million in developing a new line of business called Roll-the-Dice (“RTD”). Joe is very optimistic about this new business, but he’s not sure how well it will fit with AWC’s core widget business. Joe also believes the new venture is a far riskier undertaking than AWC’s core business. Joe would like to allow the proposed RTD management team to invest $2 million in the new venture on the same economic terms as AWC.a) 1.Describe the alternatives AWC should consider for the formation of RTD, including the choice of entity and capital structure, and identify which alternative you believe will best serve AWC’s interests.b) 2.Describe the rights and obligations that AWC will want the members of management to agree upon with respect to their equity investments in RTD.
anyone interested can answer ?

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