P/F/156. Hanson Trust: Case Study

The paper presents an analysis of Hanson Trust case study and answers on the following questions: What synergies are there in the proposed Hanson Trust/Imperial Group, Imperial/United Biscuits and the United Biscuits/Imperial mergers? Is United Biscuits in a better position to buy Imperial than vice versa? Does the market think that synergy will be derived from the proposed mergers? What value does Imperial have as an acquisition candidate? What is the maximum amount Hanson should offer for Imperial? What should be its initial offer and its subsequent negotiating strategy? Do Imperials Shareholders receive a fair stake in the initial and revised Hanson/Imperial and the initial and revised United Biscuits/Imperial mergers? Who are the winners and loser in each of the alternative deals? Compare Imperial's share price to the values of successive offers and suggest possible interpretations for the differences. In your opinion, what would happen to the price if either/both bids were withdrawn? Which offer should Imperial shareholders have accepted? Moreover, the report recommends a contingency plan for Hanson if it is i) successful and ii) unsuccessful in acquiring Imperial and recommends contingency plans for United Biscuits. Furthermore, the paper evaluates the bid.