Product details

By continuing to use our site you consent to the use of cookies as described in our privacy policy unless you have disabled them.
You can change your cookie settings at any time but parts of our site will not function correctly without them.

Abstract

The case reviews the recent takeover by Granada PLC of the largest and most established British hotel company, Forte Plc. The Granada group, a television and leisure conglomerate, launched a £3.3 billion hostile takeover bid for Forte on 22 November 1995, in one of the UK''s most expensive takeovers this decade. Concentrating on Forte, the case draws on the company background, changes in management and assesses their strategic growth (and weaknesses) in the run up to the bid. Both parties engaged in a bitter campaign to win over the Forte shareholders, seen as vitally important in their attempts to succeed in achieving very different outcomes. The case concludes with a final analysis, looking at how Granada won the battle and the implications for Sir Rocco in the face of defeat. This case can be used to show the outcomes of hostile takeovers, looking at how firms defend themselves when such situations arise and the reasons why takeovers actually happen. Aspects of performance, both financial and operational, as well as corporate strategy are analysed and presented.
Location:
Industry:
Size:
Multinational
Other setting(s):
1995-1996

About

Abstract

The case reviews the recent takeover by Granada PLC of the largest and most established British hotel company, Forte Plc. The Granada group, a television and leisure conglomerate, launched a £3.3 billion hostile takeover bid for Forte on 22 November 1995, in one of the UK''s most expensive takeovers this decade. Concentrating on Forte, the case draws on the company background, changes in management and assesses their strategic growth (and weaknesses) in the run up to the bid. Both parties engaged in a bitter campaign to win over the Forte shareholders, seen as vitally important in their attempts to succeed in achieving very different outcomes. The case concludes with a final analysis, looking at how Granada won the battle and the implications for Sir Rocco in the face of defeat. This case can be used to show the outcomes of hostile takeovers, looking at how firms defend themselves when such situations arise and the reasons why takeovers actually happen. Aspects of performance, both financial and operational, as well as corporate strategy are analysed and presented.

Settings

Location:
Industry:
Size:
Multinational
Other setting(s):
1995-1996

Related