The analyses should be in essay form (no bullets), and as comprehensive and comprehensible as possible given the page limit. They should be guided by questions listed in this syllabus for each case.

What distinguished the excellent papers…more critical thinking, application to Business strategy, implications of the article and external source, and less summarizing.

Horizontal M & A and Wrap-up

Case: Mellon Financial and the Bank of New York
Readings: MCS, chapters 10 and 11

Class Preview: This is an interesting horizontal acquisition that predicts incremental economic value for the combined firms. Again, we’ll use the M & A framework in Chapter 10. To apply the framework cogently, we need an understanding of the economics that underpin the custody business, especially its huge scale economies. We’ll look at how the easy-to-predict benefits of the deal smooth the resolution of conflicts impeding it and then we’ll outline the alternatives to the deal, which are generally unattractive.

Questions for Mellon – B of NY:

1.    What was the strategic rationale behind the merger of Mellon and Bank of New York? Think about the competition, the alternatives, the timing, the potential integration benefits and plan.
2.    What are the impediments to the deal?
3.    Is the deal worth doing given these barriers? If so, why?