Didier Pineau-Valencienne (DPV), Director General of Schneider SA, a leading French multinational company in the electrical distribution and industrial automation industries, faces the prospect of failure of the joint venture discussions with the U.S. company, Square D. negotiations should already consumed two and a half years. Mr. Pineau-Valencienne have to decide whether to cancel the debate and move forward with the tender offer for U.S. companies, and if so, to determine how much he should pay for the right area of D. The case examines the strategic fit between the applicant and the purpose of target indicators, measuring (both the base case and the interaction), the financial decisions related to the acquisition, and as a poison pill targets and anti-absorption corrections may affect the results in the fight for corporate control. An additional aspect of the case involves putting shoes participants risk arbitrageurs on Wall Street in trading game to make a "buy-sell-hold" decisions. This involves forming judgments about the Square D Schneider and counter moves, and DPV (and their own) evaluation how high the price is likely to be paid if the purchase goes.
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by Anant K. Sundaram Source: Thunderbird School of Global Management 23 pages. Publication Date: January 15, 1997 . Prod. #: TB0207-PDF-ENG