Subject category:
Finance, Accounting and Control
Published in:
1997
Length: 16 pages
Data source: Published sources
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Abstract
In September 1996 the acquisition-led, diversified industrial holding company, Hanson plc, announced the four-way demerger of its £12 billion gross turnover conglomerate. Part Two begins with a view of Hanson''s first demerger in 1995, US Industries, and looks at the subsequent strategic and management skills Hanson brought to the 1996 demergers in the run-up period. All these were designed to strengthen the companies'' exit from the conglomerate. The case study examines these tactics in detail. A sample of 1996 broker valuations on a sum-of-the-parts basis prior to demerger is compared with actual share trading experience after October 1996. Following a view of American academic evidence on the share-performance of demergers, the case concludes with an examination of whether Hanson''s and its demerged companies'' shares were under- or over-valued post-demerger.
Location:
Industry:
Size:
GBP12 billion gross turnover (1996)
Other setting(s):
1996-1997
About
Abstract
In September 1996 the acquisition-led, diversified industrial holding company, Hanson plc, announced the four-way demerger of its £12 billion gross turnover conglomerate. Part Two begins with a view of Hanson''s first demerger in 1995, US Industries, and looks at the subsequent strategic and management skills Hanson brought to the 1996 demergers in the run-up period. All these were designed to strengthen the companies'' exit from the conglomerate. The case study examines these tactics in detail. A sample of 1996 broker valuations on a sum-of-the-parts basis prior to demerger is compared with actual share trading experience after October 1996. Following a view of American academic evidence on the share-performance of demergers, the case concludes with an examination of whether Hanson''s and its demerged companies'' shares were under- or over-valued post-demerger.
Settings
Location:
Industry:
Size:
GBP12 billion gross turnover (1996)
Other setting(s):
1996-1997
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