BIB1W - Video Question Sheet

H.T.S. Crest

Holy Trinity School

Grade 9 Business Video - Other People's Money

1. Why is Larry Garfield so interested in New England Wire and Cable?

2. What is a corporate take over?

3. Explain the discrepancy that has developed between the value of New England Wire and Cable in the "Real" economy and the "Financial" economy.

4. What ethical issues are involved in a corporate takeover?

5. What is a 13-D?

6. What options are presented to Jorgi as possible ways to save his company?

7. What does the term "in play" mean?

8. What is a "Stand Still Agreement"?

9. How do Garfield and Sullivan break the Stand Still agreement?

10. What does OPM stand for? What function does OPM Holdings serve?

11. Why will an increase in the price of New England Wire and Cable stock decrease Garfield's interest in taking over the company?

12. What effect does the TRO (Temporary Restraining Order) which Kate Sullivan obtains have on Garfield?

13. What does "Greenmail" mean?

14. Who stands to benefit from the Green Mail tactic? Who stands to suffer from the Green Mail tactic?

15. How is the ownership of New England Wire and Cable divided?

16. What issue is put to the stockholders at the annual stockholder's meeting?

17. Summarize Jorgi's argument to the stockholders.

18. Summarize Garfield's argument to the stockholders.

19. What is a proxy vote? How does the president of New England Wire and Cable use a proxy vote to betray the company?

20. How does New England Wire and Cable finally make itself unattractive to Garfield as a liquidation prospect?

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