Sample Thesis Paper
Some multinationals will experience fits and starts, particularly in the high-tech and communications industries, in trying to determine exactly what is within the scope of their core businesses. What one day may appear to be integral to a business strategy may the next day become an unwanted business to be spun off or sold.
The structure of global combinations like Chrysler-DaimlerBenz and BP-Amoco will be very tax sensitive. Combinations of multinationals from different countries place a premium on structuring transactions to achieve the tax-free treatment of both shareholder groups and in developing structures that reduce the inefficiency of cross-border flows of earnings at both the company and the shareholder level. Cross-border combinations have created a resurgence of interest in structures that are intended to reduce the inefficiency of cross-border earnings flows. Ten years ago, only a few practitioners spoke or wrote about dividend access shares, or two-headed multinational structures similar to Shell or Unilever. Those topics now appear regularly in seminar programs and articles by a broader group of practitioners. While these structures have been utilised in Europe and elsewhere, it remains to be seen whether they will become used with any frequency in the US, in part because of accounting issues. More generally, it will be interesting to observe how the structure of transactions will change if the accounting rules on pooling are eventually revised.