Euro Takeover 2005 (A) The Target: HoogenFood N.V. Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

This exercise simulates a hostile takeover attempt. The goal is to inefficient conglomerate with two main segments: consumer foods and specialty chemicals. Raider company has a history of hostile action, usually profit from greenmail or the bust to eliminate occupational goals. The two other parties bidding present: white knight firm, which had friendly relations with the target in the past and believes in betting on friendly targets, and LBO firm that has sufficient capital and credit lines, which finance the ransom. Finally, the instructor has the option to include two banks, which may impose some restrictions on the possible deal frenzy. Implementation organizing students into teams representing the four companies, which have to negotiate the most favorable outcome of the episode for their firms. The parties are motivated to take action, because at the end of the tender offer Raider will be in the near future, at which time, if no higher offer outstanding, arbitrageurs will have their shares and Raider will be brought under control. All parties are aware that the board of directors of the target shall be held in a few hours, trying to decide on a course of action. This exercise is perfect for a) implementing student assessment and negotiation skills, b) training of students in the unusual dynamics of hostile takeovers, and c) develop an understanding of some of the fundamental points of corporate governance, including the responsibility of the board of directors and the agency problems that may arise, managers when jobs are under threat. "Hide
by Robert F. Bruner, Edward M. Rimland, John P. McNicholas, Sean Carr Source: Darden School of Business 46 pages. Publication Date: December 13, 2005. Prod. #: UV1396-PDF-ENG