15 Steps for Successful Strategic Alliances (and Marriages)

Posted by & filed under Economic Analysis.

Description: Wedding bells fill the Northern Hemisphere air for this season’s happy couples. Among the newlyweds armed with pre-nuptial agreements are numerous companies starting strategic alliances, joint ventures, and focused collaboratives. Source: Bloomberg.com Date: 06/01/2010 Link: http://www.bloomberg.com/apps/harvardbusiness?sid=Hf4bf828cb7a8e91f3cc9bd45f37e6165 Questions for discussion: Evaluate the suggestions made in this report. How do the suggestions in this report compare… Read more »

IBM to Spend $20 Billion on Takeovers Through 2015

Posted by & filed under Company Analysis, Growth & Valuation.

Description:  International Business Machines Corp. Chief Executive Officer Sam Palmisano, seeking to boost earnings by focusing on software and services, said he plans to spend $20 billion on acquisitions in the next five years. Source: Bloomberg.com   Date: 05/12/2010 Link: http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aRqLcBIcjkcE Questions for discussion: What is the significance of IBM’s announcement? Why are acquisitions an… Read more »

U.S. Banks in Four States Closed, Failure Count Climbs to 68

Posted by & filed under Economic Analysis.

Description:  U.S. regulators closed four banks holding less than $740 million in total assets as this year’s failures climbed to 68. Lenders in Arizona, California, Minnesota and Florida were closed by regulators and the Federal Deposit Insurance Corp. was named receiver, according to statements on the agency’s website. The failures cost the FDIC’s deposit insurance… Read more »

H-P grabbing Palm could shake up PC alliances

Posted by & filed under Company Analysis, Industry Analysis.

Description: Hewlett-Packard’s bid to gobble up Palm Inc. could shake up alliances in the personal computer industry, as other players in the sector figure out their play in a rapidly-changing smartphone arena, analysts say. Source:  Marketwatch.com Date: 04/29/2010 Link: http://www.marketwatch.com/story/h-ps-palm-merger-seen-shaking-up-pc-alliances-2010-04-29?siteid=nwtwk   Questions for discussion: Do you agree with the analysis presented? Is this a good… Read more »

UAL, Continental reportedly set to announce deal Monday

Posted by & filed under Company Analysis, Industry Analysis.

Description:  United Airlines and Continental Airlines are reportedly on track to announce a multibillion-dollar merger deal on Monday that would create the world’s biggest airline. Source:  Marketwatch.com   Date: 04/29/2010 Link: http://www.marketwatch.com/story/ual-continental-reportedly-close-in-on-deal-2010-04-29?siteid=nwtwk Questions for discussion: Is this a good deal for stockholders of each firm? From a financial management point of view, what will the… Read more »

How Not to Run an S.E.C. Investigation

Posted by & filed under Governments & Regulators.

Description: A recent report by Securities and Exchange Commission’s inspector general shows that the investigation of Bernard L. Madoff was not the only one to go badly awry. While the impact of the S.E.C.’s missteps were not nearly as significant as in the Madoff case, the report shows that the agency’s enforcement division allowed itself… Read more »

Apax, Private-Equity Firms Say Retail LBOs Return With Recovery

Posted by & filed under Industry Analysis.

Description: Private-equity firms looking to buy retail and consumer companies said they’re now able to finance deals and pay reasonable prices after the credit crisis and global recession triggered a buyout slump. Source: Bloomberg.com Date: 03/12/2010 Link: http://www.bloomberg.com/apps/news?pid=20601109&sid=a1CarvonDlcU&pos=15 Questions for discussion: Does this news bode well for the economy? What has changed in this industry… Read more »

Wall Street sours on Palm as smartphone sales stall

Posted by & filed under Company Analysis, Industry Analysis.

Description:  Analysts say wireless-device maker has few options; few see buyout as likely. Source: Marketwatch – video report   Date: 02/26/2010 Link: http://www.marketwatch.com/story/palms-survival-at-stake-if-smartphones-dont-sell-2010-02-26?siteid=nwtwk Questions for discussion: Do you think investors have properly valued Palm in the past or presently? On what basis would you set a stock value for the firm? What valuation would you… Read more »

Sears agrees to sell Craftsman tools at Ace Hardware

Posted by & filed under Company Analysis, Growth & Valuation.

Description:   Sears Holdings Corp. has agreed to sell its popular Craftsman tool brand through Ace Hardware stores, as the company turns again to outsiders to help grow its sales. Source: Marketwatch.com Date: 02/20/2010 Link: http://www.marketwatch.com/story/sears-agrees-to-sell-craftsman-tools-at-ace-hardware-2010-02-20 Questions for discussion: Do you think this strategy is sound for both firms? What alternative strategies are available to Sears and… Read more »

Ackman Buys 2% Kraft Stake, Urges Cash for Cadbury

Posted by & filed under Company Analysis, Growth & Valuation, Industry Analysis.

Description:  Billionaire investor William Ackman bought a $950 million stake in Kraft Foods Inc. and urged its Chief Executive Officer Irene Rosenfeld to limit the amount of stock she uses to bid for Cadbury Plc. Source: Bloomberg.com Date: 01/16/2010 Link: http://www.bloomberg.com/apps/news?pid=20601103&sid=aSMnsSKPDuMk Questions for discussion: Do you think Ackman’s decision is a smart move? Do you… Read more »