Financial Management and Policy Essay Example | Topics and Well Written Essays - 3000 words

Financial Management and Policy - Essay Example 6.0 Key Drivers of Change 13 7.0 Conclusion 13 Reference List 15 EXECUTIVE SUMMARY: "Realistically, the contested takeover, the proxy contest and institutional shareholder activism may be the only means for forcing ineffective management out and getting better utilisation of corporate resources" - James C. Van Horne (2002). Moreover the ever-present threat of these things may stimulate the existing management to perform better. However no other dramatic or controversial activity can happen in the corporate history than the acquisition of one firm by another or the merger of two firms. There are different opinions and schools of thoughts concerning these important happening in the corporate world, with respect to the definitive advantages and disadvantages that may accrue both to the acquiring firm as well as the firm that is being acquired. This study paper envisages to bring out the details of one of such proposals for a well publicized acquisition deal among two corporate giants, NTL, an American based Telecom and cable services giant and ITV, one of the biggest B ritish television content producer, with specific reference to the strengths and weaknesses of both involved in the deal, the underlying reasons for NTL to take such a strategic move along with the various other factors affecting the proposed acquisition deal and the key factors responsible for such a move and of course a final...This study paper envisages to bring out the details of one of such proposals for a well publicized acquisition deal among two corporate giants, NTL, an American based Telecom and cable services giant and ITV, one of the biggest British television content producer, with specific reference to the strengths and weaknesses of both involved in the deal, the underlying reasons for NTL to take such a strategic move along with the various other factors affecting the proposed acquisition deal and the key factors responsible for such a move and of course a final dialogue on the expected reactions of the individual firms and the corporate world as such over the merger . The market for corporate control can alter dramatically the setting in which business firms compete. In an idealised world this market is a positive thing for the stockholders and the economy as a whole. Assets, people and products may be transferred to more productive uses. With rapid changing technology and product markets what was once a viable corporate strategy may no longer be so.