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    The Battle For Endesa - Case Analysis

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    lorren4jean
    E.ON is considering how to acquire control of Endesa. Its options are to outbid competitors, merge with Endesa, or consolidate the two companies. A merger is recommended, as it would increase goodwill and financial resources through combining forces while allowing each company to maintain its culture. A merger plan of action includes dealing with regulatory requirements, engaging Endesa, planning the transaction, analyzing both companies, drafting legal documents, and financing the acquisition.

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    The Battle For Endesa - Case Analysis

    Uploaded by

    lorren4jean
    142 views3 pages
    E.ON is considering how to acquire control of Endesa. Its options are to outbid competitors, merge with Endesa, or consolidate the two companies. A merger is recommended, as it would increase goodwill and financial resources through combining forces while allowing each company to maintain its culture. A merger plan of action includes dealing with regulatory requirements, engaging Endesa, planning the transaction, analyzing both companies, drafting legal documents, and financing the acquisition.

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    The Battle for Endesa - Case Analysis

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    E.ON is considering how to acquire control of Endesa. Its options are to outbid competitors, merge with Endesa, or consolidate the two companies. A merger is recommended, as it would increase goodwill and financial resources through combining forces while allowing each company to maintain its culture. A merger plan of action includes dealing with regulatory requirements, engaging Endesa, planning the transaction, analyzing both companies, drafting legal documents, and financing the acquisition.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    142 views3 pages

    The Battle For Endesa - Case Analysis

    Uploaded by

    lorren4jean
    E.ON is considering how to acquire control of Endesa. Its options are to outbid competitors, merge with Endesa, or consolidate the two companies. A merger is recommended, as it would increase goodwill and financial resources through combining forces while allowing each company to maintain its culture. A merger plan of action includes dealing with regulatory requirements, engaging Endesa, planning the transaction, analyzing both companies, drafting legal documents, and financing the acquisition.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    The Battle for Endesa

    I. Point of View
    Wulf H. Bernotat, CEO of E.ON

    II. Statement of the Problem


    How will E.ON acquire control and ownership over Endesa?

    III. Objectives
     To identify specific modes in acquiring control and ownership.
     To identify option that is suitable and favorable for the acquirer.

    IV. Areas (Factors) of Consideration


     Competitors
     Amount of consideration to be tendered in securing ownership
     Company’s funding resources to finance the bidding
     Statutory requirements of Spanish government

    V. Alternative Courses of Action

    1. Increase the bid over other bidders.

    Advantages: Disadvantages:
     Allows the company to  Failure to cover costs is likely
    control the competition by to happen and as a result,
    preventing potential there is a risk of losing from
    competitors to step up. With margins.
    this, you have total control  Sustainability on quality and
    over your positioning. work on adding value to both
     No complex computations are customers and the product is
    required. to be static.
    2. Finance rehabilitation in a form of merger.

    Advantages: Disadvantages:
     Goodwill is increased.  The new company can gain a
     Combined forces to face monopoly thereby increasing its
    competition. products and services.
     Increased financial resources  Creates gap of communication
    and market share. that could affect employees’
     More growth and expansion performance as a result of
    differing cultures.
     A company may opt to eliminate
    underperforming assets that
    results to employees losing their
    jobs.

    3. Financial rehabilitation in a form of consolidation.

    Advantages: Disadvantages:
     Established and uniformed  The goodwill that these
    operation procedures. companies would have created
     Elimination of redundancy. is lost when they lose their
     Lowered overhead separate existence.
    expenditures.  Various legal formalities have
     Saving resources, money and to be observed and it is both
    to reinvest funds. time consuming and expensive
    to form.
     Difficult to form as the consent
    a large majority of shareholders
    of the companies has to be
    obtained for forming
    consolidation.

    VI. Recommendation
    After thorough analysis of the foregoing alternative courses of action of the
    case study, the case analyst recommends financial rehabilitation in a
    form of merger.

    VII. Plan of Action


    1. Deal with the statutory requirements of the Spanish government
    regarding acquisition of control and ownership.
    2. Involvement and Engagement with the company to be acquired.
    3. Planning the transaction.
    4. Analysis of the company.
    5. Drafting of Contracts and other transaction documents.
    6. Finance for the operation.

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