Subject category:
Strategy and General Management
Published in:
1996
Length: 21 pages
Data source: Published sources
Share a link:
https://casecent.re/p/22853
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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.
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.