In April 1999, the CEO of Repsol SA, a large Spanish oil company, committed to developing the adverse conditions of the tender offer to the shareholders of the largest oil company in Argentina, YPF. Value, which is paid per share YPF was installed. The rest will be determined are: (a) the method of payment, and (b) the form of funding, if it is money transaction. The task for the student to understand the advantages and disadvantages of three options for financing, using the structure, such as FRICTO, and make recommendations. Goals this case are: (1) illustrates the relationship between the purchase price, form of payment and financing the acquisition, and (2) to carry out an analytical framework to compare alternative financing options, and (3) consider the role of synergy expectations in designing funding. The case was developed for use in the MBA elective on mergers and acquisitions, although it can be easily adapted to the teaching of the concept of corporate finance. "Hide
by Robert F. Bruner, Pablo Ciano, Fernanda Pasquarelli Source: Darden School of Business 30 pages. Publication Date: February 2, 2000. Prod. #: UV2479-PDF-ENG