Monday, August 12, 2019

Merger, Acquisition, and International Strategies Essay - 9

Merger, Acquisition, and International Strategies - Essay Example The company under consideration is the Burger King. It also identifies a possible business level and corporate level strategies for the organization. The American Airline Group is a company that is publicly traded and has its headquarters in Texas. This company was formed on the 9th of December 2013, with a merger between the United States Airways Group, and the AMR Corporation. These two airline companies merged to form the largest airline company all over the world. The American Airline Group operates not less than 6,700 daily flights to different locations in the world. This covers about 56 countries, and more than 336 locations found in these 56 countries (Agyenim, 2014). The American airline group has operating revenue of about 40 billion American dollars, and boasts of a workforce of over 100,000 employees. The company plans to introduce an additional 607 aircrafts, and this includes 90 wide body airplanes, and 517 narrow body airplanes. The full merger of this company, resulting to the use of a single operating certificate is expected to be complete in the later periods of 2015 (Agyenim, 2014). The merger of the two airline companies was necessitated by the bankruptcy of AMR group. The strategy used in creating this merger is referred to as the stock-swap strategy/merger. Under this strategy, the shareholders of the US Airways received 28% of the shares of the new company. The creditors of AMR, and other equity holders were to receive the remaining 72% of the shares of the new company. This process was to take two years, upon which the company will pay the creditors of AMR their interests, and other stakeholders of the company a share of the company equity (Agyenim, 2014). This is a rare occurrence in bankruptcy cases where creditors usually receive cents, on a dollar they claim. On the other hand common stakeholders of the company are always wiped out, without receiving any benefits from the

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