The case is the first in a series of cases that mimic hostile takeover attempt involving four companies in January 1997 (see also the B [UVA-F-1171], C [UVA-F-1172] and D [UVA-F-1173] cases). The target company's inefficient conglomerate with two major business segments: consumer foods and specialty chemicals. Implementation organizing students into teams representing the four companies, and each team must negotiate an outcome that is most favorable to the firm. The parties are motivated to act, because at the end of the tender offer will be raider in the near future, and if there is no higher offer outstanding, arbitrageurs will have their shares and the raider will tender its control. All parties are aware that the board of directors of the target company is carried out in a few hours to decide on a course of action. This exercise is perfect for (1) evaluate and refine students' skills in negotiation, (2) training of students in the unusual dynamics of hostile takeovers, and (3) to develop an understanding of some fundamental points of corporate governance, including the responsibilities of the board and agency problems that can arise when managers jobs are threatened. "Hide
by Robert F. Bruner, Edward M. Rimland, John P. McNicholas Source: Darden School of Business 49 pages. Publication Date: Mar 03, 1997. Prod. #: UV2416-PDF-ENG
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