The Merger of Allianz Group and Dresdner Bank

1. Introduction In our days mergers and sciences atomic number 18 a predominant get of the international business system as companies attempt to crop new market opportunities and to strengthen their market positions. Each grade sets a new record for the total value of mergers and acquisitions and close to every day new announcements are made in the business newspapers. In the literature one finds a estimable-size number of explanations for the occurrence of mergers and acquisitions. Sometimes, these explana-tions are also applicable to colligate forms of interindustrial links such as joint ventures or strategic alliances. Therefore it is necessary to define the term merger and acquisition as it will be utilise throughout this seminar paper. 1.1 description of the Term Merger and Acquisition Two different phenomena are set forth by the term merger and acquisition. A merger is a combination of two corporations in which only one survives and the coordinated corporation goes out of existence. It is a unification of two or more firms into a new one and thus characteri-zed by the fact that later on unification there are less firms than before. On the contrary can the target firm after an acquisition either remain autonomous or be partially and/or wholly integrated into the new prove company.

However, from a legal point of view the firms remain self-reliant entities. In most of the cases, one company acquires the majority or minority equity stake in a nonher which is not a true merger in the legal sense. The two companies are not legally united, but form an scotch unit where both remain legally independent, a so-called quasi-merger. The term acquisition mainly is used when more than 50% of a companys equity are purchased, i.e. the buyer gains unload control over its target. Equity stakes of lesser percentages are referred to as minority holdings. In spite of the legal dissimilarity between mergers and acquisi-tions, both terms are often used together. In international business... If you want to get a full essay, order it on our website: Ordercustompaper.com

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