RE: RE: RE: RE: the buyout price is a tragedy Merger
(1) Acquisition in which all assets and liabilities are absorbed by the buyer. (2) More generally, any combination of two companies. The firm's activity in this respect is sometimes called M&A (Merger and Acquisition)
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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Merger
A decision by two companies to combine all operations, officers, structure, and other functions of business. Mergers are meant to be mutually beneficial for the parties involved. In the case of two publicly-traded companies, a merger usually involves one company giving shareholders in the other its stock in exchange for surrendering the stock of the first company. See also: Acquisition.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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merger
A combination of two or more companies in which the assets and liabilities of the selling firm(s) are absorbed by the buying firm. Although the buying firm may be a considerably different organization after the merger, it retains its original identity. Compare consolidation. See also downstream merger, synergy.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved.
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Merger. When two or more companies consolidate by exchanging common stock, and the resulting single company replaces the old companies, the consolidation is described as a merger.
The shareholders of the old companies receive prorated shares in the new company. A merger is typically a tax-free transaction, meaning that shareholders owe no capital gains or lost taxes on the stock that is being exchanged.
A merger is different from an acquisition, in which one company purchases, or takes over, the assets of another. The acquiring company continues to function and the acquired company ceases to exist. Shareholders of the acquired company receive shares in the new company in exchange for their old shares.
Despite their differences, mergers and acquisitions are invariably linked, often simply described as M&As.
Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
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merger
(1) With regard to corporations,a legal joining together of two or more corporations into one entity or an entity with common ownership. A horizontal merger occurs between or among competitors,and a vertical merger occurs when suppliers, shippers, retailers, and such in a common industry join together. (2) With regard to real estate: (a) The joining of two or more interests in real estate into one owner, so that the separate interests,or estates,disappear. If a property owner with a right-of-way easement over her neighbor's land then purchases the neighbor's land, the easement is extinguished. If she then sells her first property to another, the new owner cannot now claim the benefit of the old right-of-way easement, because it was merged into land ownership. (b) The concept that a real estate contract becomes merged into the deed, so that provisions in the contract, but not in the deed, are not enforceable. This is almost always a question of intent, which means a jury gets to decide. The better course is to specify in the contract that all representations and warranties and all promises and agreements survive the deed. (c) The concept that negotiations are merged into a final contract and cannot be used to vary the terms of the contract.
The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
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Merger
What Does Merger Mean?
When two or more companies combine their businesses into one business entity, generally by offering the stockholders of one company securities in the acquiring company in exchange for the surrender of their stock.
Investopedia explains Merger
Basically, when two companies become one. This decision is usually mutual between both firms, unlike a forced merger, which is known as a hostile takeover.
Related Terms:
• Dilution
• Leverage
• Leveraged Buyout
• Mergers and Acquisitions—M&A
• Takeover
Investopedia's Guide To Wall Speak, Edited by Jack Guinan. Copyright © 2009 by Investopedia®. Used with permission of The McGraw-Hill Companies,