Mergers and Acquisitions the Situation Term Paper

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06 or 56.1% to $2.95 while Zhone shares fell down to $2.90 or 18%. Yet, of the new company, Zhone shareholders will own 63.2% and Paradyne shareholders will own 36.8%. (Zhone to Buy Paradyne in Stock-Swap Deal, Says 2Q)

Even the Paradyne seniors are being retained and the Chairman and Chief Executive as also the Chief financial Officer will remain as consultants for a period of two years. The analysis by financial experts showed that Zhone will lose 2 cents per share on total revenue of $29.3 million. The earlier performance had been also bad with a loss of 6 cents per share on sales of $21 million.

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Paradyne stated that its performance will improve, but analysts say that the results will be a loss of 1 cent per share and revenue of $27.3 million and this was down from an income of 1 cent and $24 million which it got last year. (Zhone to Buy Paradyne in Stock-Swap Deal, Says 2Q) In this case clearly the objective for both companies is to reduce their losses and thus make way for their survival. The question remains whether this will happen as both the top managements will remain in the new company, and their differences will also remain.

To conclude, the process of mergers and.....

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https://www.aceyourpaper.com/essays/mergers-acquisitions-situation-68328