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Imperial Sugar -- already burdened by $500 million in debt because of an acquisition spree -- was hit harder than anyone in the industry.
While Mr. Foley concedes that this provision may highlight last-minute compensation arrangements, he questions its value, given that the vote is nonbinding and that the company is about to effectively disappear anyway because of an acquisition or other change in control.
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Its per-share earnings, cash flow and sales have been strong, he said, but the company's share price is "dirt cheap," in part because of an acquisition-related charge taken last year.
The upscale retailer Nordstrom, meanwhile, cut its full-year earnings forecast because of the effect of an acquisition, even as it reported higher first-quarter sales and profits.
The litigation against Sealed Air was particularly jarring because it came by way of an acquisition structured to avoid precisely this problem.
The exit market has changed drastically because of a decline in mergers, acquisitions and initial public offerings.
Carlyle's management fee income also will be growing because of a recent acquisition.
Eni S.p.A., Europe's fourth-biggest oil company, said its second-quarter operating profit rose 33percentt because of a $5.6 billion acquisition and higher natural gas prices.
Revenue more than doubled compared with the third quarter a year ago, he said, while earnings growth lagged slightly, at 80percentt, because of a recent acquisition.
It was carrying lots of debt, principally because of a big acquisition in 2004, and much of it was short-term.
In this view, mergers between companies that offer complementary products (sometimes called "vertical" mergers)–AIG's commercial property insurance and Sun America's retirement instruments, as an example–merit not a moment's worth of attention because an acquisition in a related market rarely augments a company's ability to charge higher prices.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com