MGT 329, ACTIVITY-2

Affirmation June 18th. One page 8, Mike Price is met in Barron'she raises the opportunity. Blazes has gone faster than expected in its offers of Allstate and DW.

So $54 for Sears which consolidates 1 offer of Allstate so subtract the expense of Allstate ($28) so whatever remains of $26, then subtract DW ($15) so whatever is left of $11, then subtract Sears Canada ($2 to $3) for a rest of $8 to $9, then subtract the estimation of Coldwell Banker (land firm) of $2 leaving $5 to $6 each offer of Sears (retail operations). Blazes has no commitment. $1.5 billion business top for $22 billion in arrangements or 6% for $1 of offers.

Crappy retailers offer for extra. J.C. Penny has $19 billion in manages a $10 billion business beat 55% of offers. Scorches is in no time 9 to 10 times less costly than J.C. Penny (Relative Value). Burns is a commitment free retailer. The new organization seems, by all accounts, to be amazingly focused. In this particular case, Sears had no commitment.

This is the time when I finally wake-up. 6% of offers for Sears versus 55% of offers for J.C. Pennypractically 1/10 as shabby!

Swing to page 10,Sara Lee

AMEX-AGFA If I think $9 for AGFA is moderate, I may have the ability to play right now.

HP (future potential divestiture)

In the Sears outline, I shorted the Allstate in light of the fact that, I expected to have an extensive measure of just Sears.

I am on the convincing size of core interest. When I see an opportunity this incredible -buy for $5 and can conceivably make $30 to $50I load up.

Indispensable COMMUNICATIONS/VIACOM CASE STUDY

In Sept. 1993, Viacom agreed to purchase Paramount Communications for stock and cash. Viacom, a media blend controlled by Sumner Redstone, was the proprietor of connection organizations like MTV, Nickelodeon, and Showtime, join structures, show stations, and TV and era divisions. In what appeared to most inspectors to be a strong match with Viacom, a mix with Paramount would contribute a primary producer and trader of film and TV programming, a book distributer (Simon and Schuster), more connection stations, more TV channels, and two recreations bunches. Particularly appealing to Viacom was Paramount's' wide library of past movie and TV hits and also access to the future yield of Paramount's film and TV studios.

Viacom was battling in this merger against Barry Diller of Fox Network and QVC Home Shopping organization. Viacom, with a finished objective to sustain its offer, Viacom focalized with Blockbuster Entertainment. That merger was wanted to close not long after the viable securing of Paramount.

At the time Viacom had the limit purchase, for cash, 50.1 percent of Paramount's shares exceptional. Despite the way that the test was over the opportunity to advantage from the merger had quite recently begun.

What wasn't so formal was the procedure for portion for the staying 49.9 percent of Paramount. While cash was the sole from of portion for purchasing the first an expansive segment of Paramount's stock, basically everything except for cash, was the sort of portion for the second 50% of the mergerknown as the back end of the merger.

The back-end portion for each offer of Paramount embodied:

Viacom fundamental stock

Exchangeable subordinated debentures of Viacom

Securities known as startling worth rights or ("CVR" one for each offer of Viacom stock got in the merger),