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Published: April 16, 2008 in Knowledge@Wharton

The ongoing takeover battle between Microsoft and Yahoo has taken several surprising turns over the past few weeks. After rejecting Microsoft's unsolicited $44.6 billion offer in late February, Yahoo has announced a two-week ad testing program with its main search rival, Google, and has reportedly entertained a possible merger with Time Warner's AOL. Meanwhile, Microsoft was rumored to be considering News Corp. as a possible ally in acquiring Yahoo. While spectators wait for the next twist in this saga, another headline-making deal has been announced: a merger between Delta and Northwest Airlines to become the world's largest airline. Knowledge@Wharton spoke with Wharton management professor Saikat Chaudhuri and Wharton legal studies and business ethics professor Kevin Werbach to find out whether these deals make sense and for whom.

After reading the interview with professor Saikat Chaudhuti and professor Kevin Werbach write a comment giving your opinion about this two mergers.

READ THE ARTICLE AND LEAVE A COMMENT ABOUT IT. HOW IMPORTANT IS TAXATION IN THE ECONOMY OF A COMPANY?

STORY HIGHLIGHTS
Firm says it will reduce workforce by about 2.3 percent of its work force Plan to rid itself of underperforming businesses and boost its global efficiency The company employs about 43,000 people worldwide

Dow Chemical announced Tuesday it is cutting 1,000 jobs, or about 2.3 percent of its work force, as part of a plan to rid itself of underperforming businesses and boost its global efficiency.
The U.S. company, one of the nation's biggest chemical makers, said it will exit the automotive sealers business within the next nine to 18 months in North America, Asia and Latin America. It will look at options in its European operations.
Other cutbacks include idling a styrene plant in Camacari, Brazil, on January 1 and closing a cellulose manufacturing facility in Aratu, Brazil, in the first quarter of next year.
Wholly owned subsidiary Union Carbide will shut down its polypropylene facility in St. Charles Parish, Louisiana, before the end of the year, and the company will significantly reduce research and development and other functions at a facility in South Charleston, West Virginia.
"Today's announcement reflects our commitment to prune businesses that are not delivering appropriate value and tackle tasks more efficiently across the entire organization ... freeing up capital and resources that will be redirected toward value-creating growth opportunities," Andrew N. Liveris, Dow's chairman and chief executive, said in a statement.
Dow expects the cuts will result in a charge of $500 million to $600 million for write-downs and severance packages in the fourth quarter of 2007. The company said it expects to save $180 million a year once the moves are made.
Dow reported a 21.3 percent drop in profit in the third quarter due to changes in German tax laws, higher domestic tax rates and charges for research and development. It posted net income after paying preferred dividends of $403 million, or 42 cents per share, compared with a year-earlier profit of $512 million, or 53 cents per share.
The company employs about 43,000 people worldwide.
Dow Chemical shares fell 49 cents to close at $41.05 Tuesday.

Sam and Gary, employees at a sporting goods company, discuss the results of recent survey administered by their complany.
Students Consolidation:
Answer the five questions and then write the conversation (role play)
Thanks and remember the exam is TOMORROW (APRIL 3rd)