Subject category:
Finance, Accounting and Control
Published by:
Ivey Publishing
Version: 1998-06-22
Length: 26 pages
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Abstract
The CEO of Ault Foods faces a dilemma. He has just learned that one of his largest shareholders has divested its 10 per cent stake in the company, signalling its dissatisfaction with company management and future growth prospects. He must decide how to respond to this sale, how to calm remaining shareholders, and how to communicate more clearly the value he thinks is inherent in the company. The case involves strategic investor relations and considers the potential value of qualitative communications, quantitative benchmarking, and signalling with financial policy.
About
Abstract
The CEO of Ault Foods faces a dilemma. He has just learned that one of his largest shareholders has divested its 10 per cent stake in the company, signalling its dissatisfaction with company management and future growth prospects. He must decide how to respond to this sale, how to calm remaining shareholders, and how to communicate more clearly the value he thinks is inherent in the company. The case involves strategic investor relations and considers the potential value of qualitative communications, quantitative benchmarking, and signalling with financial policy.