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Case
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Reference no. 9-288-046
Authors: Paul Asquith
Published by: Harvard Business Publishing
Published in: 1988
Length: 16 pages
Data source: Published sources

Abstract

Features a firm with a strong, successful, clearly-defined product market strategy. In 1982, this strategy was augmented by new management to include other, conflicting goals. This has an immediate negative impact on the stock market''s evaluation of Goodyear''s stock and attracts the attention of corporate raider Sir James Goldsmith. In an attempt to ensure independence, Goodyear management responds by returning the firm to its previous investment strategy: selling off new investment, dramatically increasing debt, and repurchasing stock. The case emphasizes that the firm with the greatest potential value gain is most vulnerable to a takeover attempt.
Location:
Industry:
Size:
Fortune 500, USD9 million sales
Other setting(s):
1980-1985

About

Abstract

Features a firm with a strong, successful, clearly-defined product market strategy. In 1982, this strategy was augmented by new management to include other, conflicting goals. This has an immediate negative impact on the stock market''s evaluation of Goodyear''s stock and attracts the attention of corporate raider Sir James Goldsmith. In an attempt to ensure independence, Goodyear management responds by returning the firm to its previous investment strategy: selling off new investment, dramatically increasing debt, and repurchasing stock. The case emphasizes that the firm with the greatest potential value gain is most vulnerable to a takeover attempt.

Settings

Location:
Industry:
Size:
Fortune 500, USD9 million sales
Other setting(s):
1980-1985

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