ACT 506 Week 1 Vodafone Group Acquisition Case Study

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ACT 506 Week 1 Vodafone Group Acquisition Case Study

 

One company may acquire another company for a number of different reasons. When the acquisition is made, it often has a significant impact on the financial statements of the acquiring company.

Find a publicly-listed company of personal interest to you that has acquired another company or made an equity investment in another company within the last three years. Locate a copy of the corresponding annual report on Form 10K containing information about this acquisition. Attach a copy of the annual report on Form 10K to your posting. A PDF file or a Word document file containing the Annual Report on Form 10K are both acceptable to attach as part of your initial response.

Note: Annual reports on Form 10K are available on the investor relations section of your chosen company’s website; they are also available on the SEC website at www.sec.gov (Links to an external site.) .

Start your initial response posting with a heading in bold type: Apple Acquisition of LinkedIn. (Just an example. This acquisition did not really happen.)

Include the questions in bold before your answers. Supplement your answers by copying and pasting contents from the respective annual report on Form 10K. Note: Simply including copied information from the annual report on Form 10K is not an adequate response to the question.

  1. Provide at least one reason that your chosen company acquired the other company. How did this acquisition benefit your chosen company, strategically?
  2. What was the terms of the deal, or the consideration given, by your company to acquire the other company?
  3. How was the acquisition funded by your chosen company?
  4. What type of acquisition discussed in this module describes the merger or the acquisition accounting which your chosen company performed on its books? Why would this type of merger or acquisition accounting be appropriate given the consideration given in the merger?