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    VISA/MASTERCARD

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    1. If you were to pick one company for your SLP company to merge with, what would it be? Explain your choice with respect to possible benefits of this merger and why you would choose this company over any other choice for a potential.

    2. How would you finance a takeover of this chosen corporation? Explain your reasoning.

    3. What would your second and third choices be for a merger with your SLP company? Again, explain your reasoning for wanting to merge with these companies, and why they would be second or third choices rather than your first choice.

    Remember to make use of the background materials in your analysis as well as additional research. Please reference all of your main sources of information, and use multiple references in your analysis.

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    Solution Preview

    1. If you were to pick one company for your SLP Company to merge with, what would it be? Explain your choice with respect to possible benefits of this merger and why you would choose this company over any other choice for a potential.
    If I were to pick one company for merger, my choice would be Visa Inc. The reason for selecting Visa in preference to MasterCard is that Visa has a positive operating income of $1.232 billion in 2008 whereas MasterCard had an operating loss of $534.50 million. Further, Visa Inc. has a net income of $806 million whereas MasterCard has a net loss of $253.91 million. Also, the equity has increased in case of Visa Inc. by 34.981 billion, whereas the equity of MasterCard equity has gone down by $1.92 billion.
    The company Visa has been selected because it is owns the largest retail electronic payment network in the world. It facilitates payments among financial institutions, consumers, businesses and governments. The company has been selected because it connects cardholders, merchants and financial institution with products and services required for making payment. The company has been selected for takeover because it is forward looking, has excellent ...

    Solution Summary

    VISA/MASTERCARD is discussed very comprehensively in this explanation..

    $2.19

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