I really need help with this !!!! Please..
The Blue Tag Company and the Pink Label Corporation both
make packaging and labeling equipment.
The following facts are relevant:
Both firms use similar production and sales
Pink label has been losing money for years,
while Blue Tag has been and is expected to continue to be profitable.
There is a great deal of overhead in label
The industry is dominated by the much larger
Yellow Marker Co., which is difficult to compete with because of its size
The managements of the two companies are considering a
merger. What arguments can be made in
favor of such a combination?
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