Ivey Publishing
Blue Jay Energy and Chemical Corporation
Product Number:
9A90B052
Publication Date:
01/01/1990
Revised Date:
05/28/2003
Length:
24 pages (9 pages of text)
Product Type:
Case
Source:
Ivey
Eagle Corp. has made a tender offer for a further 15% of the shares of Blue Jay Energy. The price is well below what some feel is the real value of the shares. The focus of the case is on strategies to close a potential value gap in the context of a hostile takeover bid. The primary alternatives are to rely on a poison pill, spin-off and a leveraged recapitalization. The case is ideal to illustrate the use of the financial markets (synthetic white knight) to negotiate a deal.
Learning Objective:
The objectives of this case are to: present reasons for and measurement of potential value gaps; formulate a strategy to realize the value to close the gap; understand restructuring strategies and ethics of a strategy.
Issues:
Disciplines:
Finance,  International
Industries:
Manufacturing
Setting:
Canada/USA, Large, 1988
Intended Audience:
Undergraduate/MBA
Price:
$5.30 CAD / $5.00 USD Printed Copy
$4.50 CAD / $4.25 USD Permissions
$4.50 CAD / $4.25 USD Digital Download
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