Disucss the common takeover defense strategies

Reference no: EM131944587

Question: Ben and Jerry's Homemade: This case examines issues of asset control for Ben & Jerry's Homemade, Inc., in light of the outstanding takeover offers by Chartwell Investments, Dreyer's Grand, Unilever, and Meadowbrook Lane Capital in January 2000. We can observe the fundamental firm objectives expressed in the company's mission statement and the company's development of a strong social consciousness; but we might question the implications of poor financial performance combined with takeover defense mechanisms to protect management's control of company assets. Should the board defend the agenda of the current management team or should it accept one of the takeover offers?

Study Questions Case 3: Ben & Jerry's Homemade, Inc.

1. Has Ben & Jerry's fulfilled each of the three dimensions of its mission statement?

2. What evidence can you provide regarding its financial performance?

3. Why did Ben & Jerry's become a takeover target?

4. Who ultimately controls the assets of Ben & Jerry's?

5. What is the impact of the asset-control devices used by management and the state of Vermont?

6. What other common takeover defense strategies (both pre-offer and post-offer) could be employed?

7. With respect to the takeover offers currently on the table, are the offer prices high enough?

8. Should the board defend the agenda of the current management team or should it accept one of the takeover offers?

9. What actually happened?

Reference no: EM131944587

Questions Cloud

How investors react to accounting-based profit fluctuations : Behavioral finance is the study of how investors react to accounting-based profit fluctuations. How investors react to interest rates and foreign currency.

What is the theoretical ex-rights share price of firm : What is the theoretical ex-rights share price of the firm? What is the value of the right?

What is the calculated valie for the best alternative : Bell was in the process of purchasing new equiptment. The ownership considered three alternatives. Each provide same service over their useful lives.

Income tax payable by investor on partly-franked dividend : Find the income tax payable by the investor on the partly-franked dividend. Then re-calculate the income tax payable if the dividend was fully franked.

Disucss the common takeover defense strategies : Ben and Jerry's Homemade: This case examines issues of asset control for Ben & Jerry's Homemade, Inc., in light of the outstanding takeover offers by Chartwell.

Specifically about position and responsibilities interests : What specifically about the position and its responsibilities interests you? Why do you feel the job fits with your career interests, aspirations and skill set?

What is the interest rate of return on this disguised loan : What is the interest rate of return on this disguised loan? Is the conventional mortgage better than the lease?

Benefit to companies of paying executives with stock options : What are some potential benefits to companies of paying executives with stock options? What are some potential risks to companies of paying executives with stoc

Calculate the return if the price of the stock is given : At the beginning of the year, you purchased a share of stock for $35. Over the year the dividends paid on nthe stock were $2.75 per share.

User Account

All Pages