Why shares of NEC Electronics, a publicly listed subsidiary of Japanese conglomerate NEC traded at a discount to their fundamental value? Maybe Perry Capital, the U.S. hedge fund, the restructuring of the subsidiary and to generate significant profits? This event gives students the opportunity to analyze the decision to invest in Perry NEC Electronics. However, he asked the reasons that the NEC can take actions that destroy value and shift the value of minority shareholders Nese. Events covered allow discussion of how the concentration of ownership hinders restructuring alternatives like hedge fund investors can resist the controlling shareholders, and as underestimating the cost of institutions can lead to ownership structure, which allows the expropriation of minority shareholders. "Hide
by C. Fritz Foley, Robin Greenwood, James Quinn Source: Harvard Business School 17 pages. Publication Date: 22 October 2008. Prod. #: 209001-PDF-ENG
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