Huge Merger

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To keep up with the changing technology environment, computer maker Dell will buy the storage provider EMC in a deal worth about $67 billion, the companies announced today, Oct. 12. Questions: 1. What are some of the benefits of the new combined company? 2. How much is Dell going to pay per share of EMC?… Read more »

Huge Food Merger

Posted by & filed under Accounting Principles, Cost Accounting, Financial Accounting, Intermediate Accounting, Managerial Accounting, Video Updates.

Heinz is going to buy 51% of Kraft in a deal brokered that is by Berkshire-Hathaway and the Brazilian-based private equity company 3G. As a result, Kraft shareholders will get a $10 billion special dividend (about $16.50 a share) under the deal. Questions: 1. What happened to the price of Kraft shares after this deal… Read more »

The Dirty Little Secret of “Cramming!”

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On July 1, 2014, the Federal Trade Commission (FTC) accused wireless carrier T-Mobile of adding bogus charges to customers’ accounts without their consent, in U.S. District Court. Questions: 1. How long did T-Mobile use the practice of “cramming” on customer mobile phone bills and what is the estimated amount of the total fraudulent charges? 2…. Read more »

The Weather Channel Buys Weather Underground

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This week, Weather Underground, a unique website with a cult following was acquired by The Weather Channel for an undisclosed sum of money. As a strong competitor to The Weather Channel, the website has a devoted readership, with approximately 10 million unique visitors per month. Fans of Weather Underground have expressed outrage and disappointment in… Read more »

The Delmonte Deal in the News

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Del Monte and Barclays Capital said on Oct. 6 they had agreed to pay $89.4 million to Del Monte shareholders to settle a lawsuit that alleged conflicts of interest in last year’s $5.3 billion buyout of the company by Kohlberg Kravis Roberts, Vestar Capital and Centerview Partners. The case centered on Barclays advising Del Monte… Read more »