Answer Key

Raising finance – Practice 2

Fill in the gaps with the appropriate word or phrase in the correct form.
  1. His company was taken  [over] by a large multinational.
  2. His attorney said it was a  [sweetheart] deal that would have allowed Elway to buy stakes at 50 percent of the team's market value.
  3. The  [black] knight of a takeover is hostile and is likely to run up against any number of defenses funded by the target company.
  4. We started as a music company but we diversified  [into] television.
  5. Robert inherited his father's shares in ATC Ltd. and now holds the  [majority] stake of 67%.
  6. The company was a somewhat  [unwieldy] conglomerate that included Red Owl grocery in Minnesota, Mode O'Day clothing stores, Aldens mail order catalogues and a bunch of other businesses.
  7. A management  [buyout] is a good deal for the business itself, as the new owners-directors investing their own money are strongly motivated and they already know the business from top to bottom.
  8. The banks that don't acquire could become  [prey] themselves and be acquired.
  9. Corporate  [raider] Steve Sternberg attempted a hostile takeover of the company in 1984.
  10. China signed an agreement to develop a regional jet, setting up a joint  [venture] company in which it will have a 46 per cent stake, Airbus 39 per cent and Singapore Technologies 15 per cent.