"On September 6, 2008, Aktiva Corporation ("Aktiva") announced that it would make a tender offer to acquire 100% of the shares of Yaco Inc ("Yaco"). The bid price was $330 per share of Yaco. Both Aktiva and Yako were medium-size, publicly-traded firms, operating in the services sector. The announcement was made after Aktiva had bought a 24.1 percent position in the firm in the open market. Moreover, both before and following the statement, Aktiva bought call options representing an additional 26.12 percent of the equity of Yaco.
The options had times to maturity changing between 229 and 558 days, and with exercise costs ("strikes") ranging between $300 and $390. In three instances, the options were bull spreads (a combined position of a long call and also a short call with different strikes). Except for the bull spreads, all options were American. Learning objectives: Option Markets, Fair Cost Statutes, Market Manipulation"
PUBLICATION DATE: December 31, 2010 PRODUCT #: IMD564-HCB-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
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