in this conversation, oscar davidson, the owner of a chain of retail clothing stores, is talking to kathleen harbrough, his financial manager, about a big deal one of his competitors has just concluded. kathleen: have you heard the news, oscar? the infashion merger with artingdales has just been approved.
oscar: yeah, i heard. they've just leap-frogged ahead of us by a good margin. our 265 shops nationwide pales in comparison to their 710. on top of that,they now have a top manufacturer as part of their operation.
kathleen: for sure. most analysts think that debusy
manufacturing was the crown jewel of artingdales.
oscar: this really gives infashion a huge competitive advantage over us. do you have any news on potential acquisitions we might go after?
kathleen: actually, i do. you may be a little surprised at this one. i've been checking up on clarisa exclusives.
oscar: clarisa! they've never shown any interest whatsoever in a merger, and they would probably never agree to an acquisition. kathleen: i know, but the time might be right for a takeover.it's not a well-known fact, but their finances are in poor shape. actually, they could turn out to be a sleeping beauty. i think their assets are highly undervalued in the industry.