Questions We Can Help You To Answer

Paper instructions:

Questions-
1.    What is the incremental value to shareholders of the cost savings (synergies) projected in this merger? How will the value of the synergies be shared in the proposed transaction?

2.    After failing to complete a merger following the three prior attempts noted in the case, why should the proposed transaction be successful this time?

3.    How much of the incremental value created in this transaction will go to the CEO’s of the two firms involved?

4.    How do you think the leadership team at Black & Decker (other than the CEO) will view this transaction? How about the governor of Maryland (Black & Decker’s headquarters state)?

5.    What issues of corporate governance and social policy are raised by the Stanley Black & Decker merger?

6.    If you were a shareholder of Stanley would you vote in favor of this transaction? Would you vote in favor of the compensation arrangements? Would you vote to re-elect the directors at the next annual meeting?