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Essay / Research Paper Abstract
This 14 page paper examined the acquisition of Wella by proctor and Gamble. The paper looks at the different reasons that may have motivated the acquisitions and the reaction of the investors and the share prices before and after the acquisition took place. The bibliography cites 13 sources.
Page Count:
14 pages (~225 words per page)
File: TS14_TEprocwella.rtf
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Unformatted sample text from the term paper:
potential of knowledge acquisition are all some potential benefits. Increase when acquisitions tale place across international boarders there are increased complexities, but the potential may also with the increased geographical
reach that can be attained. In 2003 Proctor and Gamble made a successful bid for the German Firm Wella, paying a total
of ?92.25 per share, at the time this was equal to $105.40 per share, for the voting shares and the initial offer for the non voting preferences shares which was
initially pitched at ?61.50 a share was increased to ? 65 a share (DAmico, 2003). Initially the company gained a 79.17% stake
in the company (DAmico, 2003). The controlling stake had been held within the Stroeher family across four family members who had, in the past refused to sell to Henkel, another
minority shareholder having turned down an earlier lower offer the year before (DAmico, 2003). Initially Henkel objected to the acquisition, but later changed their opinion and agreed to sell their
4.99% of the common shares and 10.38% of the preferred shares (DAmico, 2003). The reasons for the acquisition that was costing a total of ?4.7 billion, (equal to $5.3 billion)
when completed in September 2003 (The Economist, 2003) are complex, but the basis of the acquisition appears to be to desire to grow sales with the acquisition of a firm
that is strong in European and compliments the goods offered by Proctor and Gamble. This acquisition was not the first made by Proctor and Gamble in this market, Clairol
was acquired in 2001, but this had not been going as well as hoped for. The 2003 annual report by Proctor and Gamble says of the acquisition; "Develop and
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