Cooper case Solution

Introduction Cooper Industries, Inc. is a manufacturer of heavy machinery and equipment. It has acquired some companies in the past as part of their expansion plans. Cooper acquires companies that are leading in their area of business, have a large market share and is the leading company in their area of operation. Currently, Cooper is focusing on building a hand tool business with a full product line that would use a common sales and distribution …

…out in the future. The management should be made aware of this and they should be shown the fair valuation of Cooper stock and also the synergies that the firms will be able to leverage together. Even at current fair value, a Cooper stock should be worth $51.9 assuming 1% growth. Post merger, the value of Cooper stock will rise further. The management should be told that in case of a full merger, each Nicholson stock w