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The issue translates into an opportunity to increase revenues through sources of synergy ? revenue enhancement, cost reduction, lower taxes, and lower cost of capital (Ross, Westerfield, & Jaffe, 2005). Clearly, the firm must study the options in a timely manner in order to maximize profits.
Company Synopses
Rio Tinto Company
Synergy from Acquisitions
Situation Facing the Company
Comalco, now officially known as Rio Tinto Aluminum, also faced a situation similar to that of LEI ? the opportunity to maximize shareholder's wealth as a result of a hostile bid to acquire a key company (Stevens, 2007)...
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