Question

1-how i can know what the financial reporting implications of the merger/acquisition that a company follow (from where i can get this information)?

for example : what the implications of the merger/acquisition that Shire PLC follow to merg with Baxalta ?

2-what are direct acquisition cost (how i can identify them)?List the components of the direct acquisition costs

NOTE :all these question related to the merger of Shire and Baxalta

Answer 1

Solution:-

1-how i can know what the financial reporting implications of the merger/acquisition that a company follow:-

The full text of Citi's written opinion, dated January 10, 2016, which describes the assumptions made, procedures followed, matters considered and limitations and qualifications on the review undertaken, is attached as Annex C to this proxy statement/prospectus and is incorporated herein by reference. The description of Citi's opinion set forth below is qualified in its entirety by reference to the full text of Citi's opinion. Citi's opinion was provided for the information of the Baxalta board (in its capacity as such) in connection with its evaluation of the per share merger consideration from a financial point of view and did not address any other aspects or implications of the merger or related transactions. Citi expressed no view as to, and its opinion did not address, the underlying business decision of Baxalta to effect or enter into the merger or related transactions, the relative merits of the merger or related transactions as compared to any alternative business strategies that might exist for Baxalta or the effect of any other transaction in which Baxalta might engage or consider. Citi's opinion is not intended to be and does not constitute a recommendation to any stockholder as to how such stockholder should vote or act on any matters relating to the proposed merger (including the form of stock consideration if an election option is provided in respect thereof as contemplated by the merger agreement), any related transactions or otherwise.

2-what are direct acquisition cost (how i can identify them)?List the components of the direct acquisition costs:-

Represents the adjustment to eliminate combination related costs incurred by Shire ($15.0 million) and Baxalta ($20.0 million) in the year ended December 31, 2015 which are directly attributable to the pending combination but which are not expected to have a continuing impact.