Transcript Case 43. Flinder Valves and Controls Inc

Case 43. Flinder Valves and
Controls Inc
• 1. Background
• Flinder Valves and Contorls (FVC) and RSE
International Corporation (RSE) were planning
to negotiate a possible acquisition. FVC will be
one of subsidiaries of RSE if the merger
actually happens.
• 2. Questions
• 1) What is a reasonable offer price for FVC?
• 2) What consideration should be offered, cash
or stocks?
• 3) How consideration will impact the financial
status of bidder (RSE)?
• 4) Any other issues in regulatory approvals or
ownership structure?