I.Introduction a.Ben & Jerrys Homemade was on the table for coup by other firms; specifically quaternion, Dreyers, Unilever, Meadowbrook Lane and Chart head. With the increased rivalrous trade and declining financial performance, take everyplace bids were coming in. Co-founders Ben Cohen and Jerry Greenfield knew that in ensnare for B&J to maintain its social stature, it would need to continue an case-by-case bon ton; but chief executive Perry Odak felt that the shareholders would be best served by selling the association. II.Key Issues/Problems a.With multiple takeover offers, which one would be in the best interests of the shareholders and the rest of the company? III.Key Questions a.What position should Morgan take and what might be the implications? What should pick come out his decision? b.What would your management s gistcard include as you prize Ben and Jerrys performance? How have they performed on each mark? c.Who controls the assets of Ben and Jerrys? IV.Analyses The biggest question is what should Morgan do with all the takeover bids? existence that Morgan is a retired dean of Boston University business school, he is soundly versed in the business world. From this, he should consider Odaks comment about doing what is best for the shareholders of Ben & Jerrys.
If we simply look at the P/E ratio of B&J in Exhibit 6 of the case, which is 19.8, and compare that to the offers being presented by the cardinal bidders heres what we have: Dreyers Grand - $31 / $1.06 = 29.24 (stock) Unilever - $36 / $1.06 = 33.96 (cash) Meadowbrook Lane - $32 / $1 .06 = 30.18 (cash) Chartwell minority inv! estment of $30 - $50 million The P/E numbers to a higher place stage that Unilever would bring in a large investment and as well as be right for shareholders of B&J. Unilever would be paying a $15 premium over the pre-offer announcement share outlay of $21. If Morgan takes the Unilever offer, it would be taking into friendship the shareholders of B&J, but the core dimensions...If you want to get a full essay, order it on our website: BestEssayCheap.com
If you want to get a full essay, visit our page: cheap essay
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.