Ergers and Acquisitions Analysis for Stanley Works, Inc and Black & Decker Corporation

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- What issues of corporate governance and social policy are raised by the stanley Black & Decker merger?

For merger and acquisition the social issues arise are name of combined entity, the location for its headquarters, composition of board director and who will lead the combined entity. These social issue already solved by the Company that the name of combine entity will using both of the previous name entity, the location will be the same with previous location and people that lead the Company will be John F. Lundgren (CEO of Stanley) as CEO and Nolan Archibald (CEO of Black & Decker) as executive chairman.

The excessive compensation to the ceo of black & decker Archibald in post merger can bring up a question to whether he had negotiated the merger with his own interest in mind or that of black decker’s shareholder.

Lastly, Corporate governance refers to the top management process that manages and mediates value creation for, and value transference among, various corporate. The Black & Decker Company culture may different with Stanley Company culture.

- If you were a shareholder of Stanley would you vote in favor of this transaction? would you vote in favor of the compensation arrangements? would you vote to re-elect the directors at the next annual meeting?

As a shareholder of Stanley, I will vote for this transaction due to the Company will benefit for the merger for the incremental of stock price and the synergy created.

For the compensation it is better to use the stock purchase option. So, the board of Director will received benefit when the stock price increase and causes them to work for the Company interest.

For the re-elect of the directors I will reduce the number of redundant level such as CFO (Chief Finance Officer), Legal Director.

As a shareholder of Stanley, we will vote for this transaction due to teh Company will benefit for the merger for the incremental of stock price and the synergy created.