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Case 43. F linder 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
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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?