MERGERS & ACQUISITIONS

1. Task
Your group has been hired to produce an independent expert’s report on ONE of the following M&A
transactions:
• Microsoft Corporation (MSFT) / LinkedIn Corp (NYSE:LNKD)
• The Walt Disney Co (DIS) / 21st Century Fox (21CF)
• Chevron Corporation (NYSE:CVX) / Anadarko Petroleum (APC)
China National Chemical Corporation (ChemChina) / Syngenta (NYSE: SYT)
You will need to collect relevant information and data pertaining to your selected transaction, analyse the
strategic rationale and conduct a detailed valuation. Your report will be marked according to the criteria below:
1. Executive summary (5 marks): Provide an executive summary in which you briefly outline the
conclusions of your report and the most important characteristics of the deal.
2. Strategic rationale (15 marks): What are the key motives and drivers behind the deal? What are the
benefits, risks and opportunities for each party? Your response should consider the theories and
empirical evidence discussed in class in addition to your independent research.
3. Deal valuation (40 marks): What is the standalone value of the target company, the achievable synergies
(if any) and the control premium payable (if any) of the deal? In your response, you should provide the
range of offer prices which you believe to be ‘fair and reasonable’ given your valuation analysis. How
does the actual offer price compare to your suggested range?
4. Transaction financing (15 marks): How was the deal financed? Do you think the acquirer chose an
appropriate financing structure? Your response should consider the theories and empirical evidence
discussed in class in addition to your independent research.
5. Event study (20 marks): How did the stock prices of (i) the target and (ii) the acquirer react on the
merger announcement date? What are the cumulative abnormal returns (note: be specific as to the
benchmark(s) you choose)? Is the market reaction in line with what you would expect? Are there any
other significant price events to consider? Your response should consider the theories and empirical
evidence discussed in class in addition to your independent research.
6. Referencing (5 marks): In addition to a reference list per the Harvard Referencing Guide, your report
should provide a brief overview of the data sources that you used for this assignment (e.g., Yahoo
Finance, Morningstar, Bloomberg, etc.).
The aim of this assessment is to assess your ability to integrate the plethora of different
concepts/theories/empirical studies discussed in class and apply them to a current M&A transaction. Please DO
NOT directly copy information from the internet, but perform your own analysis and try to link your conclusions
with theories/empirical evidences that we discussed in class. The better you motivate your answers, the higher
your grade.

Deadline: 5.00pm Monday, 21 October 2019

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2. Group formation
Per the Unit of Study outline, this assignment is to be completed in groups of 4 to 5 students. In principle, groups
should be formed within the same tutorial session. Remember, all students in the same group, regardless of
individual contribution, will be awarded the same mark. As such, it is advised that you work closely as a group
to complete the assignment with commensurate levels of effort by each member.
3. Deliverables
Each group is required to submit a report of between ten to fifteen (10-15) A4 pages. In addition to your report,

your report may also include an additional appendix of up to seven (7) pages, which should include all pro-
forma projections, tables and graphs that help support your response. There is no need to include formula output

as you are also required to submit your Excel workbook. This Excel workbook will not be directly assessed, but
will be used as a supporting document.
Both your report and your Excel workbook must be submitted to Canvas via the Turnitin submission
dropbox so that we can verify your work. Submitted work will be checked for plagiarism by Turnitin
according to university academic honesty policy.
The discussion components of the report should be presented in Times New Roman, 12 point font size, 1.5
line-spacing with standard page margins (i.e. 2.54cm per margin).
You should also include a cover page containing your team name, team number, the unit of study and,
importantly, the names and SIDs of each group member. This cover page will not be counted towards any of
the above page limits. Furthermore, each page of the report should feature your group members’ SIDs in the
header.
The above page limits and formatting rules will be strictly enforced. Any assignments in breach of these
requirements will be subjected to penalties of up to 10 marks for the assessment, at the discretion of the markers.
Late submissions will be similarly penalised at 10 marks per day. Late submissions will no longer be accepted
after 31 Oct 2019.