M&A and its effects on Management Part 2

In part 2 of the interesting relationship between the manager's of a firm and their engagement in Merger's and Acquisition's, I look at one of the top possible deals in the pipeline. The large health-care firm Johnson & Johnson looking to buy a Dutch Biotechnology firm called Crucell.

In the first part I looked from the perspective of the buyer, who incurred a sunk cost in the months of attempting to make a deal and had enough cash on hand to try other deals, while here I will look at the management versus investor perspective at Crucell.

J & J already own about 20% of the Dutch firm and are looking to tender an offer for the rest of it.

The bid of 1.75 Billion Euros by the company is seen by management as increasing their ability to produce and sell the products they are working on in the future. The team believes they will become a unit of the much larger firm if they are bought out, allowing them to continue their research until it reaches fruition and provides a large amount of revenue.

The second largest shareholder, Van Oerk Group, with 10%; as well as others, believe the bid is too low. The bid is at a slight premium to the price as it is currently, but the company hasn't dropped their bid even while Crucell is struggling to pay for their South Korean facility's problems, causing much discontent among investors. Also, investors in Biotechnology firms such as Crucell know that their innovations will eventually lead to the "next big thing" and provide a substantial pay-day if they wait a few years.


The CEO has urged the investors to take the offer. Leading to the question; does the CEO think that J & J is saving Crucell from a severely depressed stock price or that they will really help Crucell reach its Crescendo. Let's see how this all plays out in the months and years to come.


And that is my final blog post for Management 3120 in Fall 2010, it's been a great ride, thanks Professor!

How do I manage?

Part 1, Spoken Word
I was given a task for creativity,
I begin my thoughts and visualize my abilities,
and then I start to envision positivity,
Part 2, Background
Though Management class was eccentric, I assented and ascended more than I couldve ever pretended
And I meant it, didn't invent it
Just a thought in the brain that was implemented
and as my moniker is read, you see the words Thoughts Reg
Part 3, What Occurred
The class activities made a night class lecture into a nice intellectual adventure,
And I'm not just saying that for the extra incentive,
From dropping eggs and learning how to survive the cold,
to brainstorming ideas and working together in full,
I grabbed my pen and wrote, real-life examples made things more influential
and our professor's extensive experience gave me a good impression
Part 4, Post 3120
A diverse group of individuals came in to get a grade,
and will be leaving with the tools and better experience,
I think organizing a course from the get-go, really motivated us to step forward
and learn, even filling out multiple multiples
and this is where the poem froze

Feedback!

Hey all,

The blogs... what do I think about the blogs...

Well, in the beginning part of this semester I paid almost no attention to the blog, thinking it just a portion of what I would have to do, grudgingly, to get a good grade in Management class. As the semester has gone on, however, I have found it much more useful.

Seeing the perspectives of different students on issues is quite interesting and I wish others would see the value in it as well. Blogging is becoming more and more popular and it is really a shame that people don't take advantage of the class and blog more often. It truly helped me understand the management topics on a higher level, aside from the book and great class activities of course. Responding to topics is something I did not used to do in a timely manner, but now I really do enjoy completing the assignments and giving my opinion on matters.

In fact, I am adding another 1 or 2 blogs about my interest, M&A and Finance and its relation to Management topics. Outside of class I am starting to write blogs for the members of my club and informing them on relevant news and topics that will assist them in their professional and hopefully personal lives as well.

I would give the blogs a definite A+, hopefully I get one as well. :p

M&A and its effects on Management

Dear Management Class and Professor Kurpis,

If you've been reading the Wall Street Journal daily, as I have for these past few months, you have heard of a company called BHP Billington. The Melbourne, Australia based mining and oil and gas company has been in the market to acquire other Natural Resource firms. Most notably among them is Potash Corp., a Saskatchewan based company that is the worlds largest producer of Fertilizer material Potash. The long saga of BHP attempting to buy the company for months led to higher stock prices for both firms up until the Canadian government itself did not allow the transaction to occur. Since then stock prices have fallen significantly.
Marius Kloppers, BHP's CEO, has been looking to acquire companies to use its cash deposits and expand its businesses internationally.

Now possible targets include Woodside Petroleum and Anadarko Petroleum Corporation, we'll see how this one works out for the CEO Marius Kloppers and BHP.
The costs and time spent on attempting transactions with no result could lead to the downfall of the CEO, Mergers and Acquisitions are becoming ever more present in the marketplace. (the BHP bid was ~$39Billion) Look out for some major management changes in many firms in the future.

Did I put the right DISC in?

Hey all,


Hope you had some good turkey and the rest of the food piled onto our stomachs that works against our diets! The last class we had was "Distance Learning" but the class a week earlier had to do with the Personal Profile System. Basically the professor began by saying that we were doing a class exercise, which, based on the usually enjoyable classes that those are, was destined to be just as fun. 28 Questions of matching what most and least matches our personality later( Q, Z, W,... where are you going with this) and we all knew this could really be a great tool to find out our managerial capabiilities.

I was a Di, the Dominance and Influence personality. Basically that means that my managerial style is dominance based, where I have authority and I tend to get the most immediate results.

I think it involves being more impulsive and intuitive in decisions, which is totally me. I also tend to take the place as the leader because I have certain insight into things that's different than others yet I tend to put together groups thoughts into a gameplan that's best for all parties involved.
It's important to understand the type of leader you are because there are groups in everything and it involves casual personal interaction as well. I tend to try to be the most dominant and it is evident usually. I don't think the type can really change, unless mentality changes first.
I hope my management style won't be an issue for people in my future workplace!

Power of Vision

I have many goals that I hope to achieve as a professional, now that my goals as a student have been met for the most part. Grades and activities that I wanted to fulfill by my junior year have more than been fulfilled and now I am trying to find an internship that will hopefully lead to a full-time offer before graduation.
My first goal is to get that internship within Financial Services that will show me whether I want to be in that specific field or perhaps go to graduate school in another area. This upcoming year is crucial to my future career. I am working hard within programs and submitting applications and going to various events constantly to make the goal a reality.
My second goal is to develop an understanding of how I want my personal and professional life to interact once I finish college, there is much planning involved with this process. I will begin once I know which type of career I want and then find out my personal status and thoughts at that time and planning from there.
Furthermore, as a third goal, I would like to work on developing an understanding of where I would like to be mentally in the future. Whether it's being a hardworking Banker or a long-time student trying to decide a path in life. This will not be easy to plan ahead for.

Making Decisions

During the class, which I unfortunately was unable to be a part of, there was a mad dash to become the person in power. Everyone had their own opinion on what to do and how the curve for the test should be. When, in fact, the best way to make a decision is having the group do it together in a cool manner.



There was 1 leader who people didn't agree with at first and, because the results on the exam were not very positive; everybody tended to have their own opinions on how to improve their grade. The professor asked for a "reasonable" suggestion, and having one reasonable person keep order would have been the ideal situation for all. Luckily the 100% agreement on 10 pts for the Extra Credit Assigment along with a curve saved the entire class and taught us a valuable lesson, work as a team and get what would be the best alternative for all.

I would have personally volunteered either to be the leader or help people compromise in an unofficial capacity to try to make sure there is at least SOMETHING that is agreed to. I regret not being able to attend that class.