bindex(349-356) 3/2/05 12:25 PM Page 349
Index
A B Abraham & Strauss, 181 Baby Bells, 339 Academic researchers, 125–128 BankAmerica, 31, 54 Accounting/accountants, 191, 212, 258 BankBoston, 54 Acquirer, 3 Banking industry, 5, 65–66, 70–73 Adelphia, 210 Bank of America, 53, 54, 71 Advantage Companies, 254 Bank One, 53–54, 70, 71 AFN, 157 Bankruptcy, 24–25, 34, 157–158, 180, After-tax cash flows, 280 181, 258, 261 Agency costs, 216–222, 228, 229, Barad, Julie, 187 244–245 Barr, Wallace R., 230 Agency theory, 44 Barriers to entry, 84 Airline industry, 71, 73, 99, 326 Bear hugs, 14 AirTouch Communications, 31 Beatrice, 21, 22, 37 Akers, John, 221 Bebear, Claude, 120 Allegheny Energy, 157 Beer business, 272 Allen, Robert, 309, 310, 340 Bell, Alexander Graham, 338 Allied Stores, 181, 184, 186 Bell Atlantic, 339 Allstate, 86, 295 Bell South, 339 Altria, 272 Bell Telephone, 338 American Appraisal Associates, 180 Benchmarks, 124 American Electric Power, 157 Berle and Means agency theory, 44 American Express, 295 Bias, research, 128 American Finance Association, 126 Bidders studies, 129–141, 144 American Home Products (AHP), 103, Bidding contests, 177–191 188, 230 Black, Barbara Amiel, 220, 226 America Online (AOL), 31, 200–207 Black, Conrad, 225–227 Ameritech, 31, 339 Black & Decker, 52 Amoco, 5, 61, 62, 221 Bloomingdale’s, 181 Analyst recommendations, 212, 263–264 BMW, 314 Andrade, Gregor, 141 BNP Paribus SA, 119 Anheuser Busch, 272 Board(s) of directors, x, xi, 16, 18, 37–38, ANS Communications, 256 44–45, 78, 82, 88, 120, 146, 210, Anthem, 230 217–224, 227–228, 232–234, Antitakeover laws/defenses, 13–14, 237–239, 247–248, 264, 309–310 37–39, 161, 241, 246–248, 284 Boeing, 63 Antitrust, 5, 11–12, 16–17, 97, 98, 322, Boise Cascade, 101–102 338 Bonuses, 212, 242, 264 AOL Time Warner, 29, 200–207 Borg-Warner, 22 Arco, 61 Bossard & Michael, 119 Armstrong, Michael,COPYRIGHTED 343, 344–347 Bossidy, MATERIAL Larry, 345 Arnault, Bernard, 92–93, 95 BP Amoco, 61 Asbestos litigation, 193 Bradley, Michael, 131 Asset-oriented valuation, 163 Brazil, 216 Asset turnover, 144 Breakup fees, 188 AT&T, 31, 67–68, 151, 152, 170, 194, Breeden, Richard, 225 245, 253–255, 276, 277, 282–284, British Petroleum (BP), 5, 61, 62 337–348 British Sky Broadcasting, 114 Auction model theory, 79 Broadcasting industry, 73 Auditors, 211, 212 Brokerage firms, 7 Aventis SA, 119 Bronfman, Edgar, 114–117 Avis Rent-a-Car, 192 BrooksFiber, 256 AvtoVAZ, 321 Browne, Sir E. John P., 310
349 bindex(349-356) 3/2/05 12:25 PM Page 350
350 Index
Buffet, Warren, 239 Coca-Cola Company, 105, 140, 237–239, Bullocks, 184, 186 242, 294 Burke, James, 221 Coldwell Banker, 87, 88, 192 Burroughs, 3 Collars, 142 Bush Boake Allen, 47–49 Columbia Pictures, 140 Business combination statutes, 13 Comcast, 204, 346 Commoditized, 53 C Comparability, 174, 177 Cadbury, 196 Comparable multiples, 162, 173–177 Caesar’s Entertainment, 230 Compensation, 42–44, 91–92, 120–121, Califano, Joseph, 309, 310 212, 216–232, 235–236, 240–245 California Financial Corporation, 86 Competition, 5, 231 California Public Employees Retirement Comp U Card, 192 System (CALPERs), 230 Compuserve, 203, 256 Campeau, Robert, 15, 81, 181–186 Computer industry, 339–341 Campeau Corporation, 24, 34, 79, 81, Conflicts of interest, 212, 220 184 Conglomerate deals, 6–7, 26–27, 68, 70, Canal Plus, 113–115 93 Capitalization of earnings, 162 Conglomerate Era, 69 Capital markets, access to, 170, 173 Conoco, 5, 83, 140 Capital structure, 20, 262 Contractual agreements, 318 Carnival, 58–60 Control of firm, 125, 126, 190–191 Carolina Group, 276, 277 Control premiums, 125, 126, 177–178, Carolina Power and Light, 157 328 Cascade Lumber Company, 101 Control share provisions, 13, 230 Case, Steve, 200–201, 204, 206 CoreStates, 54 Cash flow, 162, 168, 263, 300 Corporate CEOs, 229 Cash-out statutes, 13–14 Corporate charter amendments, 18 Cash payments, 142 Corporate culture, 197, 206, 207, Cegetal, 115 314–315 Cendant, 192 Corporate elections, 16 Cerent, 55 Corporate form of organization, 213–214 Certification of financial statements, Corporate governance, 35, 37–39, 212 209–249, 327–329 Chairman of board, 219–220, 240–242 Cost-based synergies, 167 Chambers, John, 55 Crescendo, 55 Champion Paper, 49 Cross-industry deals, 82–83. See also Chang, Saeyoung, 143 Diversification strategies Chapter 11 bankruptcy, 15, 24, 157–158, Cross-industry spin-offs, 292–293 183, 184, 193 Cruise industry, 58, 59 Charter amendments, 18 CUC International, 192 Charter One Financial Corp/Citizens Cushing Oklahoma, 61 Financial Group, 134–137 Chase Manhattan Bank, 53, 54 D Chaumet, 93 Daft, Douglas, 237, 239 Chevron, 5, 61 Daimler, 245 Chief executive officers (CEOs), x, 212, Daimler Benz, 81, 306–307, 312–313 218–221, 229, 240–243. See also Daimler Chrysler, 85, 306–316 Compensation Darden Restaurants, 295 Chief financial officers (CFOs), 212 Days Inn, 192 Christies, 95 Dean Witter Reynolds, 87, 88 Chrysler Corporation, 81–82, 306, Debtor in possession, 24 312–316 Debt restructuring, 20 Cisco, 55–56, 194 Dedicated alliance function, 331 Citibank, 72 Defense industry, 63–64 Citicorp, 31, 54 Defensive spin-offs, 284, 287–288 Cities Service, 140 Delaware, 12, 19, 201 Citigroup, 53, 72, 73, 88 Depreciation tax shields, 67 CNA Insurance, 276, 277 Deregulation, 5, 70–73, 99, 343 CNN, 204 Desai, Anand, 131 bindex(349-356) 3/2/05 12:25 PM Page 351
Index 351
Deutsche Bank AG, 119, 315 Fast-food chains, 293–295 Diamond Shamrock, 140, 284 Federal Communications Commission Diller, Barry, 114, 117 (FCC), 154 Dimon, Jamie, 72 Federal Trade Commission (FTC), 11–12, Directors, see Board(s) of directors 61 Disciplinary takeovers, 74, 232–233 Federated Stores, 15, 34, 79, 81, 181–186 Discounted cash flow (DCF), 162–172 Fendi, 93 Discount rate, 167–173, 280 Fiduciary duties, 180, 217 Discover Dean Witter, 295 Fifth merger wave (1990s), 23, 29–31, 70, Disney, 216 144–146, 242, 269, 270, 295–296 Distribution systems, 104–105, 321 Fifth Third Bancorp., 134 Diversification strategies, 82–95, Financial Management Association, 126 243–245 Financial synergy, 67–68, 170, 173 Divestitures, 23, 268–278, 280–281 Finkelstein, Edward, 15, 181 Dividends, 275 Firstar Corp., 54 Divisional CEOs, 229 First Boston, 183, 184 Dodge, 313 First Chicago, 54 Dom Perignon, 93 First Data, 295 Donna Karan (brand), 93 First Energy, 157 Dormann, Jurgen, 119 First merger wave (1897-1904), 26–29, 70 Drexel Burnham Lambert, 28, 35, 180, First Union, 54 195, 270 Fisher Price, 187 Dual capitalizations, 18–19 Flavor and fragrance industry, 47–50 Due diligence, 193 FleetBoston, 54 Duke Power, 151–152 Fleet Financial, 54 Dunlap, Al “Chainsaw,” 210 Fokker, 308 DuPont, 14, 83, 116, 140 Ford, 312 Dutch East India Company, 213 Foreign market access, 321 Form 8K, 7 E Forstmann Little, 179 Earnings per share (EPS), 173–174 Fort Howard Paper, 22 Earthlink, 203 Forward multiples, 174 Eaton, Robert, 306, 312 Fourth merger wave (1980s), 9, 16, 22, Ebbers, Bernie, 44, 210, 254–258, 27–28, 33–39, 70, 247–248, 269, 270 260–266 Fourtou, Jean-René, 119 EBITDA, 173, 174 Fox News, 204–205 Economic classifications, 4–7 Fraud, 191–193 Economies of scale, 25, 57–62 Free cash flows (FCFs), 163–165 Economies of scope, 25 Freightliner, 81 Eight Factor Test, 9 Friendly takeovers, 14 Eisner, Michael, 216 Fuji Bank Ltd, 71 Elections, corporate, 16 Full Service Network, 203 Electronic Data Systems (EDS), 275–276 Elf Aquitaine, 61, 120 G Eli Lilly, 6, 328–329, 331 Gannon, Bob, 154–157 El Paso Energy, 62 Gatorade, 194–195, 237 Enrico, Robert, 237 General division shares (GD), 302 Enron, 210 General Electric (GE), 7, 51–52, 83, 91, 93 Entertainment industry, 71, 73 General Foods, 271 Entrenched management, 88 General Mills, 295 Equity carve-outs, 23–24, 295–301 General Motors (GM), 58, 221, 275–276, Even targeted shares, 274 321 Event study methodology, 129 Germany, 216 Experience, 331 Ghosh, Aloke, 144 Exxon, 5, 29, 31, 58, 60–62 Givenchy, 93 Exxon Mobil, 60–62, 167 Glaxo Wellcome PLC, 31, 103 Goizueta, Robert, 239, 240 F Golden parachutes, 230–231 Fair price laws, 13 Goldman Sachs, 155, 180, 308 Fair price provisions, 18 Goldstein, Richard, 47, 49 bindex(349-356) 3/2/05 12:25 PM Page 352
352 Index
Governance, corporate, see Corporate Industry-specific valuation, 163 governance Information-based assets, 92 GPU, 157 Initial public offerings (IPOs), 298 Greenmail, 19 Inside directors, 219–221, 228 Grey directors, 217 Insider-dominated boards, 232, 248 Griffin, Merv, 163–164 Insider stock purchases, 189 Group CEOs, 229 Insider trading laws, 10–11 Group Danone, 237 Instant Messenger, 203 Growth, 25, 42–56, 164–166 Insurance, M&A, 193 Grubman, Jack, 263–264 Insurgents, 16 Grumman, 63 Intellectual property, 328 Gulf & Western, 27 Interco, 180 Interlocked directors, 217, 222 H Intermedia Communications, 258 Harad, George, 102 Internal expansion, 45 Harrah’s, 230 Internalization hypothesis, 68–69 Harrison, William, 72 International diversification, 85, 89 HBO, 205 International Flavor and Fragrances Healy, P., 140–141 (IFF), 47–49 Hennessy, 92 International Paper, 48–49 Hewlett Packard, 331 InterPath Communications, 157 Hidden costs, 193 Investment bankers/banking, 35–37, Highly leveraged transactions (HLTs), 20, 53–54, 128, 180, 212, 263 34, 37 Involuntary sell-offs, 288 High-yield bonds, 21–23 Involuntary spin-offs, 283–284 Hindrey, Leo, 344–345 ITT, 27, 282, 283, 340 Hoechst AG, 119 Hohlhaussen, Martin, 310 J Holden, James, 314 J. D. Power ratings, 314 Hold-up hazards, 325 J. P. Morgan, 53, 54, 72, 73, 338 Hollinger, 225–227 J. P. Morgan Chase, 53–54, 70, 71 Horizontal alliances, 330 Jaffre, Philippe, 120 Horizontal joint ventures, 324 Japan, 216 Horizontal mergers, 4–5, 26, 68, 98, 170 Jeep, 313 Hospital Corporation of America, 22 Jensen, Michael, 130, 143 Hospitality Franchise Systems (HFS), 192 JetBlue, 99 Hostile takeovers, 14–16, 27, 33, 70, Johnson, Ross, 21 163–164, 340 Johnson & Johnson, 221 Houghton Mifflin, 115 Joint ventures, 319–326 Howard Johnson’s, 192 Journals, 127 H&R Block, 256 Junk bonds, 21–23, 27, 28, 184 HSN, 117 Huang, Yen-Sheng, 142 K Hubris, x, 75–83, 118, 146, 179–181, Kalpana, 55 183–186, 315, 316 Kaplan, Robert, 182–184 Hudson, Cad D., 143 Kaplan, Steven, 132 Hughes Electronics, 344 Kaufman, Wendy, 195 Kentucky Fried Chicken, 105, 294 I Kidder Peabody, 7 IBM, 221 Kim, E. Han, 131 Icahn, Carl, 13 Kinetic Energy Interceptor, 63 IDB Communications, 255 Kissinger, Henry, 225, 226 I Magnin, 184, 186 Kmart, 67, 88–89 Improved management hypothesis, Knowledge of industry, 239 72–74 Kohlberg Kravis and Roberts (KKR), Incentives, 216 20–21, 37, 128, 226 Independence, 210, 211, 219–221 Kopper, Hilmar, 310 Industry clustering, 69–71 Kozlowski, Dennis, 44 Industry leaders, 51–53 Kraft Foods, 271, 272 Industry shocks, 70 Kravis, Henry, 226 bindex(349-356) 3/2/05 12:25 PM Page 353
Index 353
Kravis, Marie-Josée, 226 Matsushita, 14, 116 Kroll, Jules, 197 Mattel, 186–187 Kroll Associates, 197 May, Peter, 195 Mayerson, Sandra, 180 L MCA, 14, 116 Lachmann, Henri, 120 MCI, 255, 257, 261 Lang, Larry, 133, 137 Medco Containment Services, 6, 104 Lanigan, Robert J., 310 Media One, 344 Lawsuits, 19 Megamergers, 27, 29, 31, 33 Lazard LLC, 113 Meissner, Jean-Marie, 85 LDDS Communications, 44, 253–255 Mercedes Benz, 312–314 Learning Company, 186–187 Merck, 6, 104 Lego, Paul, 221 Mergers and acquisitions (M&As), 1–31, Lerner, Abba, 96 45–50, 230–232, 234–235, 318–319 Lerner Index, 96 Mergers of equals, 138–139, 245–246, Lettered stock, 274 306–316 Leveraged buyouts (LBOs), 20–23, 34, Mergerstat, 343 37, 38, 183–186 Merger strategy(-ies), 41–107 Leveraged takeovers, 13, 20–23 Merger waves, 26–29 Leveraging, 36–38 Messier, Jean-Marie, 111–115, 118–122 Levin, Gerald, 201–202, 206, 207 Metromedia Communications, 254 Liabilities, 193, 281 MFS Communications, 256 Liberty Media, 345 Microsoft, 12, 142, 203 Lightstream, 55 Milken, Michael, 23, 28, 195 Liquidity, 298, 300 Miller, Heidi, 73 Litigation liabilities, 193 Miller Brewing, 272 Litton Industries, 64 Mistic, 196 Loans, personal, 262, 264 Mitchell, Mark, 141 Lockheed Martin, 63 Mitsubishi, 81, 307 Lock-up options, 179 Mobil, 5, 29, 31, 60–61 Loews Corporation, 276, 277 Moeller, Sara B., 139, 144–146 Long-term research studies, 140–141, 144 Moet, 92 Lorillard, 276, 277 Monks, Robert, 88 Los Angeles Clippers, 337 Monopolies, 70 Loughran, Tim, 144 Monsanto, 230 Louis Vuitton, 92 Montana Power, 150–158 LTV Group, 140 Moody’s, 21, 120 Luce, Henry, 204 Morgan Stanley, 127 Lucent Technologies, 341 Morrison, Robert, 237 LVMH, 92–93, 95 Morrow, Robert, 221 M N McCaw Cellular, 67–68, 170, 342 Nabisco, 271 McNerney, Jim, 93 National City, 54 Macy’s, 15, 81, 181, 184, 186 National Commerce Financial (NCF), Madison Dearborn Partners, 102 134, 135 Magowan, Peter A., 310 National Grid Group, 62 Malone, John, 345 NationsBank, 31, 54, 71 Management, 35–36, 42–44, 88, Natomas, 140 130–140, 146, 189–190, 214–216, Natural gas industry, 71, 73 219–221, 229, 233–234 NCR, 194, 340–341 Management buyouts (MBOs), 21 Net acquisition value (NAV), 56–57 Management turnover, 232–233 Net liability value, 281 Mannesman AG, 31 Net operating losses (NOLs), 67 Marathon Oil, 140 Netscape, 202 Market power, 95–97 Nevada, 12 Market returns, 124 Newport News Shipbuilding, 64 Market-to-book ratio, 133 New York Attorney General, 263 Market value liabilities, 281 New York Mets, 79 Master limited partnerships (MLPs), 300 New York Stock Exchange, 153, 154 bindex(349-356) 3/2/05 12:25 PM Page 354
354 Index
New York Yankees, 79 Piloff, Steven, 65 NiSource Inc, 62 Pittman, Robert, 206 Noncompete fees, 225 Pizza Hut, 105, 294 Nonhorizontal alliances, 330 Plant managers, 229 Normal return (term), 96 Poison pills, 17, 246–248 Nortel Networks, 31 P&O Lines, 59 Northrop Grumman, 63–64 Pooling of interest, 306 NorthWestern Corporation, 151 Porter, Michael, 272–273 Norwest, 54, 71 Postmerger integration costs, 197 No-shop agreements, 188 Powerade, 237 Novartis, 327 Present value calculation, 280 NWA Inc., 22 Price-earnings (P/E) multiples, 173–174 Nynex, 339 Princess, 59, 60 Private equity market, 23 O Private-sector research, 127–128 Occidental Petroleum, 140 Procter & Gamble, 221 OfficeMax, 101–102 Prodigy, 203 O’Gara, Thomas, 197 Product acquisition, 102–104 O’Gara Company, 197 Profit maximization, 42 Oil industry, 5, 6, 60–62, 140, 167 Projection period, 164, 165 Oligopolies, 70 Proxy fights, 16 Olive Garden, 295 Pseudodivestitures, 274 Olympia and York, 184 Psychic income, 244 Operating synergy, 57–62 Public companies, 3–4, 7–8, 212 Oracle, 4, 247 Public Company Accounting Oversight Organic growth, 45 Board (PCAOB), 212 Outside directors, 217–222, 228 Outside-dominated boards, 232, 248 Q Overlapping deals, 141 Q ratio, see Tobin’s q ratio Overpaying for assets, 34, 178–179, Quaker Oats, 194–196, 237–239, 242 189 –196 Quest, 152, 154, 346 Owens-Illinois Inc., 22 QVC, 188 P R Pacific Telesis, 339, 348 Radler, David, 225, 226 Palepu, K., 140–141 Rales Brothers, 180 Panasonic, 340 Ramada, 192 PanCanadian Petroleum Ltd., 151 Rating agencies, 21 Paramount, 188, 201 Ravelston, 225 Parsons, Richard, 206 Raytheon, 63 Partnerships, 213, 214 RC Cola, 196 Payment methods, 142–144 Red Lobster, 295 PCS Health Systems, 6, 275 Regulatory framework, 7–14, 212, Peltz, Nelson, 195 321–322 PeopleSoft, 4, 247 Related diversification, 92–93, 95 Pepsi, 105, 237, 293–295 Related-fields synergy, 68 P/E ratios, 173–174 Repligen Corporation, 328–329 Perelman, Ronald, 179 Repsol SA, 62 Performance, company, 144–146, 206, Republic Steel, 140 235–236, 272–273, 310, 311 Research, securities, 212 Perks, 218 Research & development (R&D), Perle, Richard, 226 102–104, 191, 321, 327 Personal loans, 262, 264 Research studies, 123–147 PetroFina, 5, 61 Residual value, 165 Pfizer, 4, 29, 31, 103, 188 Resorts Casino, 163–164 Pharmaceutical industry, 4, 6, 60, Restructuring, company, 19–20, 23–25, 102–104, 188–189, 327 191, 267–304, 325, 341–342 Philip Morris, 271–272 Resurgens Communications Group, 254 Phillips, 5, 61 Retention bonuses, 264 Phillips De Pury & Luxembourgh, 95 Returns, 124–125 bindex(349-356) 3/2/05 12:25 PM Page 355
Index 355
Reuter, Edzard, 308 Slow-growth industry, 45–50 Revenue-enhancing synergy, 57, 62–66, Smale, John, 221 166 –167 Smithburg, William, 195 Revenue maximization, 42 SmithKline Beecham, 31, 103 Revenue recognition, 258 Snapple, 194–196 Reverse LBOs, 20 Societe Generale, 119 Revlon, 178–179 Soft drinks industry, 105, 194–196 Rhone-Poulenc SA, 119 Sole proprietorships, 213, 214 Rigas, John J., 210 Solomon Smith Barney, 263 Rigas, Timothy, 210 Solvency opinion, 180 Rights offerings, 246–247 Sotheby’s, 95 Rights plans, 17 South African Breweries, 272 Risk, 168–170 Southern Pacific Railway, 288 Risk effect, 231 Southland Corporation, 22 RJR Nabisco, 20–22, 37, 79 SouthTrust, 137 Roche Holdings, 6 Southwest, 99 Rodriguez, Alex, 79 Southwestern Bell, 339 Roebuck, Alvah, 86 S&P 500, 124 Roll, Richard, 75 Special elections, 16 Ross, Steven, 201 Special purpose entities (SPEs), 210 Royal Bank of Scotland, 71, 134–137 Sperry, 3 Royal Caribbean, 59, 60 Spin-offs, 23, 281–285, 290–295, 298 Ruback, Richard, 130, 140–141 Spreading overhead, 57 Rule 10b-5, 10–11 Sprint, 257, 275, 278 Stafford, Erik, 141 S Standard & Poor’s, 21 Safeway Stores, 22 Standstill agreements, 19 Santa Fe–Southern Pacific, 288 State laws, 12–14, 19 SBC Communications, 31, 348 Steel industry, 140, 141 Schaeffer, Leonard, 230 Stempel, Robert, 221 Schedule 13D, 8 Stock options, 216, 234 Schedule 14D, 9–10 Stock payments, 142–144 Schlingemann, Frederik P., 139, 144–146 Stock prices, 174, 177–178 Schneider, Manfred, 310 StrataCom, 55 Schrempp, Jurgen, 82, 306–308, 312, Strategic alliances, 319, 326–332 315, 316 Strategic focus, 190 Seabourne, 58 Strategy, merger, see Merger strategy(-ies) Seagate Technologies, 21, 22 Stulz, Rene M., 133, 137, 139, 144–146 Seagram, 114, 115–118 Subgroup CEOs, 229 Sears, 65, 86–89, 279, 295 Sullivan, Michael J., 143 Sears, Richard, 86 Sullivan, Scott, 264 Second merger wave (1916-1929), 26, 70 Sumitomo Bank Ltd, 71 Section 13D, 187 Sunbeam, 210 Securities and Exchange Commission SunTrust Banks, 54, 134, 135 (SEC), 7–8, 225, 258 Superior voting rights common stock, Sell-offs, 23, 278–281, 285–289 190 –191 Sephora, 95 Supermajority provisions, 18 Serial acquisitions, 55 Super voting rights stock, 18 Servaes, Henri, 137 Supply access, 321 Severance packages, 120–121 Synergy, 25, 56–71, 166–167, 169–170, SFR, 115 173 Shareholders, 4, 8–10, 14–15, 214–216 Syntex, 6 Shareholders (company), 31, 62 Shareholders’ rights plans, 17 T Shareholder wealth effects, 143, 231, Taco Bell, 105, 294 234–235, 285–288, 290–291, TAG Heuer, 93 298–302, 322–325, 329–331 Takeovers, 3, 4, 14–20, 74, 177–178, 224, Shocks, industry, 70 227–228, 230–234 Short-term orientation, 34–36 Target company, 3, 129–140 Short-term studies, 128–131, 142–144 Taubman, A. Alfred, 227 bindex(349-356) 3/2/05 12:25 PM Page 356
356 Index
Tax-based synergy, 67 U.S. Navy, 64 Tax effects, 142, 285 U.S. Steel, 140 TBS Network, 204 U.S. Tax Code, 285 Telecommunication, Inc. (TCI), 343 U.S. West, 152, 339 Telecommunications industry, 44, 73, Universal, 114, 117 151–154, 157, 253–266, 283–284, USA Networks, 114 343 Utilities industry, 71, 73, 150–152 Teledyne, 27 UUNet, 256 Telesave, 203 Telstar, 338 V Tender offers, 3, 8–10, 14–16, 133, 137 Vail, Theodore, 338 Texaco, 5, 13, 61 Valuation, 80–81, 159–198, 280–281 Texas Rangers, 79 Value management, 161 Textron, 27 Vertex, 327 Third merger wave (1960s), 26–27, 70, Vertical integration, 100–102 131–132, 268–270 Vertical joint ventures, 324 Thoman, G. Richard, 310 Vertical mergers, 5–6, 68, 170 Thomas Pink (brand), 93 Vertical transactions, 26 Thompson, James, 226 Veuve Cliquot, 93 Thornburgh reports, 264–265 Vijh, Anand M., 144 3M Corporation, 91, 93–95 Vivendi, 14, 85, 111–122 360 Networks, 157, 158 Vodafone, 31 Thrift industry, 73 Voting rights, 190–191, 233–234, 275 Time Inc., 200, 201, 204 Time Warner, 31, 200–207 W Tobin, James, 132 Wachovia, 53, 54, 137 Tobin’s q ratio, 74–75, 132–133, 223 Walking, Ralph A., 133, 137, 142 Toe holds, 187 Wal-Mart, 86, 88 Total (company), 5, 61 Walter, Bernhard, 310 TotalFina, 62 Warner Brothers, 200, 201, 204 Touch America, 151–157 Warner Lambert, 4, 29, 31, 103, 188 Towers Perrin, 216 Warner Music, 204, 205 Tracking stock issuances, 274–278, Warrants, 17 301–302 Washington Mutual, 54 Trailing multiples, 174 Wasserstein Perella, 180, 183 Trane, 52 Weill, Sanford I., 72 Transocean Sedco Forex, 62 Weisbach, Michael, 132, 221 Travelers, 31, 54, 71 Welch, Jack, 52, 91, 93 Triac Companies, 194–196 WellPoint Health Networks, 230 Triangle Industries, 195 Wells Fargo, 53, 54 Tricon Global Restaurants, 105, 294 Western Electric Company, 338 Trotman, Alex, 312 Western Union, 338 Trucking industry, 71, 73 Westinghouse, 221 Trump, Donald, 164 White knights, 17, 19 TRW, 63–64 White squires, 19 Turner, Ted, 202, 207 Wilson, Lynton R., 310 Turner Broadcasting, 202, 204 WilTel Network Services, 255 20-day waiting period, 15 Winner’s curse, 15, 34, 79–82, 164, 179 Two-tiered tender offers, 15–16, 18 WorldCom, 44, 210, 253–266, 343, 346 Tyco, 44, 83, 187 Wossner, Mark, 310 U Wulf, Julie, 138 Wyeth, 103, 188, 189, 230 UNISYS, 3 United Kingdom, 216 Y U.S. Bancorp, 54 U.S. Bankruptcy Code, 24 Yukosneftegaz, 62 U.S. Filter, 115 U.S. Justice Department, 11–12, 26–27, Z 258, 283, 338–339 Zetsche, Dieter, 314