Failures in Mergers and Acquisitions: the Daimler Chrysler case

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Mergers of Equals: 
A merger of equals is a merger framework usually applied whenever the 
participants are comparable in size, competitive position, profitability and market 
capitalization (DePamphilis 2011). Sometimes it could be unclear whether one 
party is ceding control to the other and which party provides the greatest synergy. 
Normally the CEO position of the new firms is equally shared between the former 
CEOs of the merged firms. 
Tender offers: 
Tender offers refer as an offer to purchase some or all of shareholders' shares in 
a corporation. The price offered is usually at a premium to the market price. When 
a firm extends an offer to its own shareholders to buy back stock, it is defined as 
self-tender offer. Tender offers may be friendly or unfriendly. As explained by 
DePamphilis, a hostile tender offer is a takeover tactic in which the acquirer 
bypasses the target's board and management and goes directly to the target's 
shareholders with an offer to purchase their shares. 
 
2.1 Forms of payment 
As we previously described, the purchase price in a merger can consist in cash, 
stock, or debt, giving the acquiring company more space and options in how to 
pay for the purchase of the target's stock. 
If the seller receives acquirer shares in exchange for their shares, the merger is a 
stock-for-stock or stock-swap. If the shareholders of the selling firm receive cash 
or some form of nonvoting investment for their shares, the merger is referred to as 
a cash-out statutory merger (DePamphilis 2011). Merger generally are not 
suitable for hostile transaction because they require the approval of the target's 
board.