Stakeholder Groups Involved in the Takeover Essay

Stakeholder Groups Involved in the Takeover - Essay Example It is evident that the Ferrovial shareholders did not view the takeover in a positive light. This was because the takeover deal was satisfied with a large amount of borrowing which caused a humongous change in the firm’s leverage. Following the takeover, there was a continuous declining trend in the share price of Ferrovial following the takeover. The price went from â‚ ¬60.57 on 31 May 2006, hitting a low of â‚ ¬50.76 on 16 June 2006, to a â‚ ¬58.56 at the close of the month. Though Ferrovial had made cash payment for BAA and the takeover did not dilute the ownership of Ferrovial, the stock prices continued to decline in the following years. The current share price of Ferrovial is down to a â‚ ¬19.38.BAA employees:Ferrovial had indicated that it would ‘sell its 50% interest in Bristol airport to co-owner Macquarie’. In addition, the Spanish company also expressed intentions for cutting costs at BAA to make it even more profitable (Lea, Robert, 2006). This obviously aroused great fear in the employees of BAA. Employees also believed that Ferrovial was unfamiliar with the industry and would, therefore, be unable to bring much improvement to BAA. However, many of the fears of BAA employees were quenched as the takeover did not cause any massive layoffs. However, to improve the efficiency of the system, several British managers were laid off. BAA Creditors:Some of BAA’s bonds were downgraded and became junk bonds. The bondholders lost out heavily, as they received little compensation for their initial investments.

Account Balance and Budget Balance in United States of America, Assignment

Account Balance and Budget Balance in United States of America, Australia and Indonesia - Assignment Example From the visual representation, it can be observed that over the four years, Indonesia has had a surplus in its current account balances, this means that Indonesia is saving most of its resources than investing those resources. For the case of Australia and the USA, both countries experienced a deficit in their current account, but Australia has gradually improved its current balance. This implies that these countries are investing more than they are saving and thus, they are utilizing resources sourced from other economies in order to finance domestic consumption. Twin deficit refers to a situation a deficit in the national budget leads to an expanded deficit in the current account. Twin deficit proposition, argues that a large budget deficit has a negative impact on the national saving of the country, this, in turn, leads to souring the current account deficit. Although, some economist that this proposition is so weak in explaining this phenomenon (Hansen, 2003). A twin deficit exi sts in the case of the United States of America where the budget deficit has led to expanding the current account deficit. This implies that the United States acts as the net debtor to other global economies. Therefore, the United States is investing extra resources to other world economies than saving and in return use resources from world economies to fund the domestic consumption. Indonesia has the largest economy in the southeast of Asia, this economy  is characterized by a major development in the information technology sector thus having a comparative advantage over countries in the region. Indonesia was worst hit by the recent global financial crisis that hit the world giant economies like the United States. Thus Indonesia has put up measures so to try and shield its citizen from the financial crisis souring economic conditions in the country. The national government of Indonesia has embarked in various fiscal policy stances so to stabilize the economy. In the effort to sta bilize the economy the government has decided to increase its expenditure, in this case, the government has decided to offer a subsidy to the citizen so as shield them from the soaring commodities prices. Indonesia government will more spend in the current year in subsiding the fuel prices.