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Nissan and Renaeu: Legal Insights

The document discusses several key financial and economic concepts: 1) Price multiples which are ratios used to evaluate a company's financial situation such as P/E, P/B, and P/S ratios. 2) Tender offers which are offers to purchase shareholders' shares in a company usually at a premium to the market price. 3) De-mergers which refer to a corporate strategy of selling off subsidiaries or divisions of a company to boost stock performance or pay down debt.

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5 views2 pages

Nissan and Renaeu: Legal Insights

The document discusses several key financial and economic concepts: 1) Price multiples which are ratios used to evaluate a company's financial situation such as P/E, P/B, and P/S ratios. 2) Tender offers which are offers to purchase shareholders' shares in a company usually at a premium to the market price. 3) De-mergers which refer to a corporate strategy of selling off subsidiaries or divisions of a company to boost stock performance or pay down debt.

Uploaded by

hosam_obz
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd

legal aspects -1

competition -2
world investment report -3
economies of scale -4
Economic factors
(a- static efficiency (page 16
b- dynamic efficiency
e- capital market imperfections
f- friendly Vs hostile acquisition
examples

Nissan and Renaeu -1

Important definitions
What Does Price Multiple Mean?
Any ratio that uses the share price of a company in conjunction with some specific per-share
financial metric in order to evaluate a company's financial situation. The share price is
typically divided by a chosen per-share metric to form a ratio.

Investopedia explains Price Multiple


Some common price multiples are the price-to-earnings (P/E) ratio, the price-to-book (P/B)
ratio, and the price-to-sales (P/S) ratio. These ratios are used in conjunction with other
fundamental metrics, such as EBIDTA, in order to give analysts and investors a quick
initial impression of whether a company would make a good viable investment. However,
because these multiples are very simplistic, they should not be the only measure of assessing
a potential investment.

Tender Offer

What Does Tender Offer Mean?


An offer to purchase some or all of shareholders' shares in a corporation. The price offered is
usually at a premium to the market price.

Investopedia explains Tender Offer


Tender offers may be friendly or unfriendly. Securities and Exchange Commission laws
require any corporation or individual acquiring 5% of a company to disclose information to the
SEC, the target company and the exchange
De-merger

What Does De-merger Mean?


A corporate strategy to sell off subsidiaries or divisions of a company.
Investopedia explains De-merger
For example, in 2001 British Telecom did a de-merger of its mobile phone arm, BT Wireless,
in an attempt to boost the performance of its stock. British Telecom took this action because it
was struggling under high debt levels from the wireless venture.

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