1. When was the attempted acquisition by AT&T of the T-Mobile unit of Deutsche Telecom, and what was the price of this acquisition? Which government agencies blocked this acquisition and on what grounds?

2. In which M & A situations is the

purchase method

used? What does the purchase method create? What is meant by push-down accounting? Under the purchase method, how are the earnings of the newly acquired subsidiary consolidated?

3. Which type of beta does the adjusted present value model use in contrast to the free cash flow of the firm model? What does this beta reflect? What element of the adjusted present value (APV) model gives it flexibility in contrast to the free cash flow of the firm model? How is the interest tax shield treated in the APV model?

4. Which type of beta does the adjusted present value model use in contrast to the free cash flow of the firm model? What does this beta reflect? What element of the adjusted present value (APV) model gives it flexibility in contrast to the free cash flow of the firm model? How is the interest tax shield treated in the APV model?

5. What type of defense was Daimler’s acquisition of Chrysler in 1998? What was the price Daimler paid for Chrysler? What were the various synergy problems in this merger? What was the final outcome of the Daimler Chrysler Merger

6. Tesco’s failure in its efforts with direct foreign investment in southern California, Nevada, and Arizona can be attributed to at least two of the reasons outlined in Chapter 7 of the textbook (p. 109) re the failures of M & As. Although Tesco’s investment in the United States was a direct foreign investment (not an M & A), some of the same reasons for failure are applicable to Tesco’s efforts in the United States. Briefly discuss and apply your selected two reasons (from the list posted below) for Tesco’s failure and discuss what happened. Overestimation of the target’s value, primarily caused by an overestimation of the growth and/or market potential Overestimation of the expected operating, financial, and/or managerial synergies Overbidding and overpayment Failure to undertake a thorough due diligence of the target (a rush to judgement) Failure to successfully integrate the target after the merger or acquisition (lack of follow-through) What was the final outcome of this DFI for TESCO? What was the cost?