Module on Acquisitions, Mergers, Divisions, and Liquidations

On October 5, 1999, MCI Worldcom (the second-largest long-distance phone company) announced its plan to acquire Sprint (the third-largest company) for a total price of $108 billion. The prospective merger of these two telecommunication giants made front-page headlines in newspapers around the courntry. While transactions like the proposed MCI/Sprint merger are certainly fascinating to business students, their tax consequences are extremely complex. Consequently, Principles of Taxation for Business and Investment Planning does not include a chapter on the taxation of corporate mergers and acquisitions. However, the predecessor to this text, Federal Taxes and Management Decisions, contained a chapter that introduced the basic tax concepts in this area. For those professors who would like to use this chapter as a supplement to Principles, below is an updated electronic copy of Chapter 12, "Corporate Acquisitions, Mergers, Divisions, and Liquidations."

Module on Acquisition (766.0K)