As the principles involved in structuring leveraged for a well-capitalized firms risk arbitrage, Bob Meehan and George Schwartz are preparing bids for the business and assets of the subsidiary Westinghouse. The case focuses on the value of the opportunities, methods of structuring a high debt capacity, and cost of capital claims. Also provides an opportunity to discuss the mechanism of competitive bidding, information asymmetry between buyers and sellers, and the stakes strategy. "Hide
by Carliss Y. Baldwin, Harry Gruner Source: Harvard Business School 18 pages. Publication Date: September 10, 1986. Prod. #: 287023-PDF-ENG
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