Product details

This is the second of a two-case series (704-043-1 and 704-044-1). Fresh from his victory for increased shareholder rights, corporate raider Wyser-Pratte, together with a coalition of active investors, tries in this (B) case to use their new found rights to influence the strategic direction of the Vendex company. In contrast to Wyser-Pratte''s comments in the previous year, one investor - K Capital Partners - pressures management and the supervisory board to consider selling the company, in the belief that the conglomorate is undervalued and that an acquirer would easily pay a 100% to 200% premium over the current share price, thereby maximising shareholder value. The purpose of this case is to allow a discussion on who is really in the best position to make strategic decisions within a company, management or shareholders? Students can discuss if they believe that active investors act in the interests of all shareholders (or stakeholders) or that they are simply looking for whatever short-term gains they can get? Does an increase in share price reflect the long term value creation potential of the company or merely give investors the opportunity to divest?