Subject category:
Finance, Accounting and Control
Published by:
Harvard Business Publishing
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.
Spanish language
Subject category:
Finance, Accounting and Control
Published by:
Harvard Business Publishing
Length: 18 pages
Data source: Published sources
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
Related
Subject category:
Finance, Accounting and Control
Published by:
Harvard Business Publishing
Length: 18 pages
Data source: Published sources