Bigcorp,Inc. ,a huge conglomerate with interests in various industries,is acquiring Odorific Co. ,the nation's leading manufacturer of men's socks.None of Bigcorp's current "family" of companies purchases socks,nor do any of Bigcorp's suppliers.Bigcorp purchased Odorific after a study conducted by Bigcorp concluded that startup costs in the sock industry made a de novo entry impractical,and that none of the existing men's sock manufacturers other than Odorific could be acquired for a reasonable price.Odorific's competitors were stunned by the acquisition.They wish to challenge the acquisition.Which theory of attack best suits this case? Explain your reasoning.

Question

Quizplus · Accepted Answer

The Answer of Bigcorp,Inc. ,a huge conglomerate with interests in various industries,is acquiring Odorific Co. ,the nation's leading manufacturer of men's socks.None of Bigcorp's current "family" of companies purchases socks,nor do any of Bigcorp's suppliers.Bigcorp purchased Odorific after a study conducted by Bigcorp concluded that startup costs in the sock industry made a de novo entry impractical,and that none of the existing men's sock manufacturers other than Odorific could be acquired for a reasonable price.Odorific's competitors were stunned by the acquisition.They wish to challenge the acquisition.Which theory of attack best suits this case? Explain your reasoning.