Sharks in the Water, Battling an Activist Investor for Corporate Control (A) Case Solution
In July 2006, Barracuda ended up being the biggest investor in Tarco International. In a meeting with management, Barracuda's handling director encouraged that strong steps had to be required to enhance running efficiency. If management stopped working, Barracuda would require a sale of the business. In action, the board of Tarco worked with FD, a leading monetary interactions consultancy concentrating on tactical investor relations. The board asked FD to assemble substantial research study on the Tarco's investor base, investor understanding of the business and monitoring efficiency, predictive ballot on prospective proxy propositions, and methods utilized by Barracuda in previous activist engagements. Equipped with this information, the board needed to choose exactly what actions to take, if any, to keep Barracuda at bay and guarantee that Tarco maintained the assistance of its financiers
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