Lester Electronics, Inc. (LEI), Shang-wa Electronics, Transnational Electronics Corporation (TEC), and Avral Electronics, S.A. are firms that are involved with growing through mergers and acquisitions and each firm desires to maximize shareholders wealth. In 1978, Shang-wa Electronics, a small Korean manufacturer of capacitors, formed a partnership with Bernard Lester who then founded LEI. LEI entered into an exclusive United States distribution contract with Shang-wa. LEI grew rapidly into a consumer and industrial electronics parts master distributor. Lester has not marketed domestic-made parts outside of the United States and LEI's revenues approximate $500 million a year. Also, LEI is rated Baa by a nationally recognized rating agency.
Situation Background (Step 1)
Lester Electronics (LEI) is at a cross roads in its development. It has been presented with an opportunity to acquire Shang-wa, a Korean supplier with which it has a long standing agreement for the exclusive......

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Title: Problem Definition
Approximate Word Count: 897
Approximate Pages: 4 (250 words per double-spaced page)

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