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 competitive trade and declining financial performance, coup detat bids were coming in. Co-founders Ben Cohen and Jerry Greenfield knew that in point for B&J to maintain its social stature, it would need to catch ones breath an case-by-case bon ton; but chief executive Perry Odak felt up that the shareholders would be best served by selling the federation. II.Key Issues/Problems a.With multiple take over 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 issue his decision? b.What would your management s gistcard include as you appreciate Ben and Jerrys performance? How have they performed on each proportion? c.Who controls th e assets of Ben and Jerrys? IV.Analyses The biggest question is what should Morgan do with all the takeover bids? beingness that Morgan is a retired dean of Boston University business school, he is headspring 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 tetrad 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) Chartwel! l minority investing of $30 - $50 million The P/E numbers supra 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 term the shareholders of B&J, but the core dimensions...If you want to get a full essay, order it on our website: BestEssayCheap.com
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