Hostile Bid for Red October Case Solution
Manatep Bank, a Russian investment bank, has declared the nation's first hostile tender offer for Red October, a confectionery business found in Moscow. As the chief financial officer of the target company, Yuri Yegorov must determine what to recommend to the board of directors, and the best way to react, how much his business is worth.
The circumstance of the instance, the nascent Russian monetary system, raises a number of complicated and fascinating valuation problems including establishing discount rates in states with unstable authorities and high inflation, unclear property rights, and fiscal advice that is lousy. The lack of institutional and fiscal infrastructure provides a marked comparison to takeovers and financial markets in developed nations.
This is just an excerpt. This case is about FINANCE & ACCOUNTING
PUBLICATION DATE: June 18, 1996