The paper "Apple's Latest Acquisition " is an outstanding example of a business annotated bibliography. After constant pressure from the creditor committee, American airline had to merge with US Airways to become the largest carrier in the country. This merger between the AMR and US Airways would provide the organization with significant opportunities to both the companies and in particular, the AMR would be provided with an additional opportunity to enhance its net saving. In addition, the AMR’ s shareholders would receive a 3.5 percent equity stake in the new organization through which the shareholders would be able to earn some recovery even after the bankruptcy case. In order to advance with the merger, the CEO of the bankrupt American Airline would be paid $20 million which could be termed as a golden parachute for the organization at this moment.
Although the merger between both organizations was under consideration for quite some time, it has been reported that the merger would be finalized by paying the outgoing CEO $9.9 million in cash along with $9.9 million in stock as part of the severance package.
It has also been indicated that the merger would be finalized and closed in the third quarter (i. e. July-September 2013) (Daily Mail, 2013). StoryThe filing of bankruptcy in November 2011 was one of the major identified reasons behind such a merger. As indicated by Stephen Karotkin, a lawyer of AMR; the parent company of American Airlines indicated that strategic move taken by the AMR would provide the organization with an opportunity to establish it from scratch by working in collaboration with US Airways. This merger would help both the organization to create and form the largest carrier in the country.
With this merger, AMR would see significant changes in management. The article indicates that the CEO of American Airlines would not be able to see a new organization. The merger of both the organizations to create the biggest airline in the country would be lead by US Airway’ s CEO Doug Parker whereas; Horton would become the chairman of this newly established company. As indicated, Tom Horton would be paid $9.9 million dollars in cash along with $9.9 million in stocks to step down from his position as the CEO of the company.
List of References
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Daily Mail. (2013). Judge holds up American Airlines merger with US Airways because bankrupt company plans to pay CEO $ 20 Million golden parachute. Available from http://www.dailymail.co.uk/news/article-2300719/Judge-holds-American-Airlines-merger-US-Airways-bankrupt-company-plans-pay-CEO-20MILLION-golden-parachute.html [Accessed 3 May 2013]
Huff Post. (2013). US Airways CEO Gets 44 Percent Pay Bump; Merger Makes Him Leader Of World's Biggest Airline. Available from http://www.huffingtonpost.com/2013/04/16/us-airways-ceo-salary_n_3090910.html [Accessed 3 May 2013]
Hughes, N. (2013). Apple's $20M purchase of WiFiSLAM snubs Google's Android for indoor map tech. Available from http://appleinsider.com/articles/13/03/25/apples-20m-purchase-of-wifislam-snubs-googles-android-for-indoor-map-tech [Accessed 3 May 2013]
Joel, M. (2013). Apple’s latest acquisition puts them inside the building. Harvard Business Review, Available from http://blogs.hbr.org/cs/2013/03/apples_latest_acquisition_puts.html [Accessed 3 May 2013]
Koenig, D. (2013). American Airlines CEO Tom Horton’s severance package will be nearly $ 20 million. Available from http://www.huffingtonpost.com/2013/02/15/american-arlines-ceo-severance-package_n_2695434.html [Accessed 3 May 2013]
Reed, B. (2013). Apple buys indoor mapping company in latest bid to improve iOS Maps. Available from http://bgr.com/2013/03/26/apple-wifislam-acquisition-ios-maps-396556/ [Accessed 3 May 2013]
Reuters. (2013). Sony Corporation establishment of Sony Olympus Medical Solutions Inc. Available from http://www.reuters.com/article/2013/04/16/sony-corporation-idUSnBw5jVZrTa+11a+BSW20130416 [Accessed 3 May 2013]
Sony Corporation. (2012). Corporate strategy meeting. Available from http://www.sony.net/SonyInfo/IR/info/strategy2012/pdf/presenE.pdf [Accessed 3 May 2013].
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