Grand Met's dinner date with destiny 1. Why merge? Identify the perceived advantages of such a merger for the two companies. 2. Why does the proposed merger need approval? 3. Brand names are identified as an influential factor in the decision to merge the two companies. Why are they felt to be so influential? 4. Using appropriate diagrams, discuss the effect that the merger is likely to have on share prices. 5. Presentations were made by the companies to institutional investors. Who are these investors, and why are they important to the success of the proposed merger? 6. One reason for the merger was the fall in spirits sales and the inability of spirits companies to achieve inflation-beating price rises. Account for this difficulty. 7. During the 1980s Guinness sought to grow by buying in distributors. What benefits would a firm gain by employing this strategy? 8. Produce a report for a rival drinks company identifying strategies that they could employ to counter the threat of the new company.