Cooper industry, H.K. Porter Company and VLN Corporation

Introduction Cooper industry, H.K. Porter Company and VLN Corporation are entangled in a battle over the takeover of Nicholson File Company. Both H.K. Porter Company and VLN Corporation have already made their offers to the Nicholson File Company shareholders and now the management of Cooper Industry have to decide whether to jump into the foray for the control of Nicholson File Company or not. The major issues faced by the management of Cooper …

…significant, and have not been factored into the analysis. These inflows might just make the $3-4 premium that Cooper is paying over the market value at present worthwhile. Therefore, our recommendation would be that the spread between the value received and paid is quite thin, and hence Cooper should take a decision based on its estimate of the synergies that are possible with the present portfolio, and also with possible acquisitions in the near future.