Subject category:
Finance, Accounting and Control
Published by:
Cranfield School of Management
Length: 8 pages
Data source: Published sources
Share a link:
https://casecent.re/p/23785
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Abstract
The case states reasons for demerging North American pulp and paper interests from other multinational and UK interests of Bowater Corporation, together with business strategies of the two groups. Could similar reasoning justify demergers for other groups? Following through the financial aspects of the demerger, which were quite complex, involving: (1) a Rights issue in the UK; (2) an issue of shares in the US; before (3) splitting off the Bowater Corporation 75% (by then) interest in Bowater Inc on a pro rata basis to shareholders in the UK company. Another aspect of interest was the fast changing $/£ exchange rate.
About
Abstract
The case states reasons for demerging North American pulp and paper interests from other multinational and UK interests of Bowater Corporation, together with business strategies of the two groups. Could similar reasoning justify demergers for other groups? Following through the financial aspects of the demerger, which were quite complex, involving: (1) a Rights issue in the UK; (2) an issue of shares in the US; before (3) splitting off the Bowater Corporation 75% (by then) interest in Bowater Inc on a pro rata basis to shareholders in the UK company. Another aspect of interest was the fast changing $/£ exchange rate.