What do you mean by Corporate Restructuring? What are the methods companies adopt while going for the Corporate Restructuring? Give Corporate Examples.

Section-A

Q1. What do you mean by Corporate Restructuring? What are the methods companies adopt while going for the Corporate Restructuring? Give Corporate Examples.

Q2. Explain the treatment of goodwill in amalgamation? What are the disclosure requirements in an amalgamation?

Q3.Discuss the taxation aspects of Demergers?

Q4.Who are Merchant Bankers? What is their role in Mergers and Acquisitions?

Q5.Explain any two methods of valuation of mergers and Acquisitions?

Section-B

Q1.What do you mean by Takeover Defenses? Discuss in details the various defensive strategies adopted by companies in hostile takeovers?

Q2.Discuss the challenges faced by the companies after the merger? Explain with the help of a corporate example.

Q3.What are the advantages and disadvantages of LBOs and MBOs? Support your answer with corporate examples.

CASE-STUDY - ICICI BANK LTD

ICICI Bank was originally promoted in 1994 by ICICI limited, an Indian financial institution, and was its wholly owned subsidiary. ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of the Indian industry.

The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses. In the 1990s, ICICI transferred its businesses from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of product and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI became the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on NYSE.

After consideration of various corporate structuring alternatives in the context of the emerging competitive scales in the Indian banking industry, and the move towards universal banking, the management of ICICI and ICICI Bank formed the view that the manager of ICICI with ICICI Bank would be the optimal strategic alternative for both entities, and would create the optimal legal structure for the ICICI group`s universal banking, strategy.

The merger would enhance the value for ICICI shareholders through the merged entity`s access to low-cost deposits, greater opportunities for earning fee-based income and the ability to participate in the payment system and provide transaction-banking services.