The case scenario studies the determination of the security services corporation Brink's Company to spin-off its home security division from the remaining part of the company. The decision pursued intense pressure on the organization by three activist hedge funds who felt that Brink's was chronically undervalued along with the individual businesses were worth more than the combined business.
The choice was resisted by the business for more than a year before agreeing to the break up. The argument made by the company and each one of the investors is followed by the case. It also describes the activities by the enterprise to convince its stockholders of the merits of keeping the business collectively, along with the activities the activist investors took to get the attention of the board, management, and other investors. The companies, home security monitoring and risk-free transfer, are described from both a financial perspective as well as a small business strategy so that the potential value of distinct value improving alternatives may be examined.
PUBLICATION DATE: November 07, 2011 PRODUCT #: 112055-PDF-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
Related Case Solutions & Analyses:
Contractual Innovation in the UK Energy Markets: Enron Europe The Eastern Group and the Sutton Bridge Project
Internet Securities Inc.: Financing Growth
Finance for Managers Business Fundamentals Series
Telewizja Wisla
NovaStar Financial: A Short Seller’s Battle
Value Partners and the Evergrande Situation
Franklin Templeton India: The Cash Holding Dilemma
The Real Value of Say-on-Pay
Piedmont University
Transatlantic Holdings, Inc. – The Belle of the Ball
