Product details

The case illustrates the issues faced in the valuation process of a Public Tender Offer (PTO) from the point of view of a minority shareholder (an institutional investor with a portfolio share greater than 2 percent) who must decide whether to take part in the offer or retain the investment. The PTO in question relates to an industrial restructuring (Progetto Mediterraneo) and financing (leveraged buy-out) programme that represents the source and method for value creation. The objective of the operation is first described from the point of view of the offer maker, the majority shareholder, and starting from the valuation of the price offered, the alternatives for the minority shareholder are outlined, depending on the various acceptance scenarios.