Amoco Corporation is negotiating the sale of a subsidiary, MW Petroleum, Apache Corporation to MW has large reserves of oil and gas, which contains many properties in various stages of design, development and production. The proposed acquisition is great for Apache and raises several important financing and evaluation issues. This case is designed to assess the performance and creative financing structure that allows buyers and sellers to reallocate risks in oil prices. "Hide
by Timothy A. Luehrman, Peter Tufano, Barbara D. Wall Source: Harvard Business School 17 pages. Publication Date: February 27, 1995. Prod. #: 295045-PDF-ENG