Results 1 to 2 of 2
  1. #1
    Join Date
    Sep 2006
    Posts
    187
    Post Thanks / Like

    Default merger+acquisition

    I need help, the differences between merger and acquisition are:

    Acquisition: the acquiring company wants to control the target company , e.g. acquiring a majority of the voting shares in that company but at the same time both company can remain independent legal entities.
    Merger: taking over a company, either forming a new one company(e.g. 1+2=3,they lose their identity) or the merger assumes the liabilities and assets of the target.(1+2=1)

    What does it mean the acquiring company, I think, this is this one, which wants to take over another one, don't you?
    1)1+2=3
    2)1+2=1 here is the acquiring company the first, isn't it, 2 is the target

    And what does it mean "consolidation"
    thanks

  2. #2
    BobK's Avatar
    BobK is offline Harmless drudge
    • Member Info
      • Member Type:
      • English Teacher
      • Native Language:
      • English
      • Home Country:
      • UK
      • Current Location:
      • UK
    Join Date
    Jul 2006
    Posts
    15,332
    Post Thanks / Like

    Default Re: merger+acquisition

    You have it right. But the situation is complicated by people not wanting to lose face. I started working for DEC in the mid '80s, and about 10 yrs later they were acquired by the relative newcomer Compaq. But all the internal FAQs we were fed had:

    Q Is this a merger or an acquisition?
    A It is a merger... [blah, blah, blah...]

    If you've read '1984', you'll have met the concept 'doublethink. Somehow, the people who organized the acquisition found a way to bend the language so that the could justify the use of the word 'merger'. It made the few surviving DEC board-members feel better.

    A few years later, HP acquired Compaq. Same story, even down to the logic-chopping internal FAQs.

    The moral of my story is, hang on to your understanding of the difference between an acquisition and a merger, but treat with a bucketful of salt anything that the resulting company says about it.

    b

Similar Threads

  1. second language acquisition
    By meng lai in forum Ask a Teacher
    Replies: 1
    Last Post: 08-Sep-2006, 12:00
  2. ESL Theories
    By Anonymous in forum Teaching English
    Replies: 4
    Last Post: 30-Aug-2006, 08:49
  3. To tdol
    By Taka in forum Ask a Teacher
    Replies: 5
    Last Post: 26-Oct-2004, 12:29
  4. ENB 6 AQA English Language Acquisition/ change
    By Anonymous in forum Ask a Teacher
    Replies: 3
    Last Post: 25-Jan-2004, 13:46

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
Hotchalk