Subject category:
Strategy and General Management
Published by:
London Business School
Version: November 2012
Revision date: 27-Jan-2015
Length: 20 pages
Data source: Generalised experience
Abstract
This is part of a case series. This case describes a situation in which the venture capital firm Warburg Pincus is later joined by a trade investor in a private UK company (Remy International Limited). The two investors' conflicting objectives are exposed when Remy International's board decides to make an offer to buy its main competitor, whose parent company is now in bankruptcy in the US. The potential acquisition is further complicated by the fact that the target company's management also want to buy it and threaten to leave the company and set up a competitor if Remy International is successful in its bid.
About
Abstract
This is part of a case series. This case describes a situation in which the venture capital firm Warburg Pincus is later joined by a trade investor in a private UK company (Remy International Limited). The two investors' conflicting objectives are exposed when Remy International's board decides to make an offer to buy its main competitor, whose parent company is now in bankruptcy in the US. The potential acquisition is further complicated by the fact that the target company's management also want to buy it and threaten to leave the company and set up a competitor if Remy International is successful in its bid.