Merger Of Title
Merger Of TitleA lesser interest in real property being merged (absorbed) into a greater interest. For example: A lessee purchases the property being leased. The interest as a lessee is merged into the interest as an owner, thus ending the leasehold interest.
Merger Of Title
The process by which two companies become one. If the companies are listed, the merger may be by agreement, or hostile. A hostile bid is one in which the directors of the target company reject the approach, but it is still possible for the predator company to obtain control if enough of the target's shareholders accept its offer.
Horizontal mergerHorizontal merger
A merger involving two or more firms in the same industry that are both at the same stage in the production cycle; that is, two or more competitors.
Statutory mergerStatutory merger
A merger in which one corporation remains as a legal entity, instead of a new legal entity being formed.
Merger ArbitrageMerger Arbitrage
In the context of hedge funds, a style of management that involves the simultaneous purchase of stock in a company being acquired and the sale of stock in its acquirer.
A corporate restructuring in which one part of a company is spun off as a new company, often with quoted status of its own. Examples in the UK include Zeneca which was spun out of ICI, and Argos which was spun out of British American Tobacco.Like their opposite - mergers - demergers tend to go in and out of fashion. When share prices are rising, companies like to use their 'paper' (i.e. shares) to acquire other companies, so their advisers encourage merger activity. In a market of falling prices, mergers and IPOs are less popular, and the merchant banks who earn their fees from corporate activity will start to look at demerger possibilities for their clients.From a tax point of view, when Company A splits into two or more parts, and distributes shares in each part to its original shareholders, there is no disposal for CGT purposes.In a study of 38 demergers, the London School of Economics found that demergers are beneficial to shareholders both at the time of the announcement and in the two years following.
Further SuggestionsFriendly Merger
City code on takeovers and mergers
Panel on Takeovers and Mergers