RUKMINI DEVI INSTITUTE OF ADVANCED STUDIES
INTERNAL ASSIGNMENT MBA March, 2013
Paper Code: MS 222 Subject: Mergers, Acquisitions and Corporate Restructuring
Max. Marks: 15
Note: Attempt all questions.
Q1. What are the SEBI regulations relating to acquisition of shares and takeovers? 5 Marks Q2. A Ltd is studying the possible acquisition of T Ltd by way of merger. The following data are available in respect of the companies: Particulars A Ltd T Ltd Earnings after Taxes(Rs) 80,00,000 24,00,000 No. of equity shares 1600,000 400,000 Market value per share(Rs) 200 160 i) If the merger goes through by exchange of equity and the exchange ratio is based on the current market price. What is the new earning per share for A Ltd? ii) T Ltd. wants to be sure that the earning available to its shareholders will not be diminished by the merger. What should be the exchange ratio in that case? 5 Marks Q3. Briefly describe the various valuation models in the merger process. 5 Marks Last date of submitting the assignment: March 18, 2013