sandyneedshelp
Junior Member
Trying to sort thru a case study assignment and am getting lost.
A corporation has 100% of its shares owned by the venture arm of a leading bank.
The purchase was 80% leveraged with a co-operating bank - competitor.
45 days after the closing it is announced that both banks will be merging.
#1 Is it proper for one arm of the bank to be the 100% shareholder, and another arm be the lone secured creditor? Normal trade payables for the company run nearly equal to owners equity.
#2 Is there a requirement for the merged bank to refloat the notes with another arms length bank?
#3 If divesiture is required, under which Federal Law are the requiremnts to be found?
Thanx for the help,
sandy
A corporation has 100% of its shares owned by the venture arm of a leading bank.
The purchase was 80% leveraged with a co-operating bank - competitor.
45 days after the closing it is announced that both banks will be merging.
#1 Is it proper for one arm of the bank to be the 100% shareholder, and another arm be the lone secured creditor? Normal trade payables for the company run nearly equal to owners equity.
#2 Is there a requirement for the merged bank to refloat the notes with another arms length bank?
#3 If divesiture is required, under which Federal Law are the requiremnts to be found?
Thanx for the help,
sandy