List of largest mergers and acquisitions kennecott copper kennecott copper: carborundum corporation: 0567 2 4 1978. They identify carborundum as a potential target and make a tender offer to buy its shares in studying this case, you will analyze the rationale behind kennecott’s acquisition proposal, and try to determine whether it indeed generates value. The major incentive for the acquisition of carborundum is the diversification of kennecott’s products and services for kennecott’s management shareholder’s should not be interested in having this diversification done for them, and should instead would want to diversify their portfolio themselves which offers much greater efficiency. In 1968, kennecott copper corporation made a hasty decision when it purchased peabody coal company in the years preceding the acquisition, kennecott had experienced wide swings in its profitability, which it was looking to offset by diversification.
Kennecott corporation was acquired by the standard oil company in 1982, thus allowing carborundum to become a subsidiary of the standard oil company in 1987, carborundum merged into bp america, inc, which is a subsidiary of british petroleum. Massachusetts institute of technology sloan school of management 15434 corporate finance what is the top price kennecott should pay for carborundum 4 as a non . Kennecott copper corp case solution, includes a $ 550 million cash offer from kennecott copper corp for all outstanding common shares of carborundum corp includes a $ 550 million cash offer. By this time, carborundum’s parent company, kennecott, had merged with standard oil of ohio (sohio) barrow was now vice chairman of sohio, a commanding figure, 6’6” tall and weighing about 280 pounds.
The [curtiss-wright] nominees have committed, if elected as the board of directors of kennecott, to pursue a program seeking to sell its wholly-owned subsidiary, the carborundum company (carborundum) at an advantageous price and to make the proceeds available to the shareholders in the manner which, in the judgment of the board of directors . William hall wendel, retired president of carborundum co and kennecott copper corp, died monday following a heart attack at his winter home in savannah he was 76 and lived in savannah and. Carborundum, a producer of abrasive products was an attractive acquisition target for kennecott to replace peabody given its stably increasing earnings profile this rationale however does not appear to achieve general principles of either horizontal or vertical synergies. Kennecott utah copper - wikipedia, the free encyclopedia history environmental relations late in 1977, kennecott acquired the carborundum co, . Carborundum corporation read the court's full decision on findlaw division or successor corporation of carborundum corporation, kennecott corporation, kennecott .
Involves a $550 million cash tender offer by kennecott copper corp for all of the outstanding common shares of the carborundum corp. Kennecott utah copper llc (kuc), a division of rio tinto group, is a mining, smelting, and refining company its corporate headquarters are located in south jordan . That kennecott needed to diversify seems clear, but the carborundum acquisition was controversial and it provoked a 1978 proxy fight with t roland berner, chairman of curtiss-wright mr. Over that period, carborundum and its divisions were bought and sold by companies that included kennecott, standard oil, british petroleum, and saint-gobain—the current parent company of carborundum.
Search our database for case study about a merger between kennecott and carborundum term papers, essays, research papers, dissertations. Kennecott copper corporation, was incorporated under the laws of delaware in 1977 for the purpose of making a tender offer for the shares of old carborundum, a delaware corporation the public tender offer commenced on november 29, 1977, and before it expired on january 4,. Kennecott carborundum co jacksonboro tn 11 standard brake shoe and foundry gray iron foundry plant memphis tn 12 ----- neic inventory of epa consent decrees 8 . Kennecott copper corporation case report 1 analyze the economic rationale of the carborundum acquisition under what conditions an acquisition would be. A merger between kennecott and carborundum harvard case study solution and analysis of harvard business case studies solutions – assignment helpin most courses studied at harvard business schools, students are provided with a case study.
Carborundum timeline n 1891: carborundum company is founded by edward a acheson and william mcallister n 1981: the carborundum company is purchased by kennecott copper, will be sold to . In essence, curtiss-wright proposed that kennecott try to sell carborundum at or above the $567 million which kennecott had paid for it and use the proceeds and other kennecott funds to make either a tender offer for half the outstanding kennecott shares at $40 per share, or a $20 per share cash distribution. Kennecott copper corp case solution,kennecott copper corp case analysis, kennecott copper corp case study solution, includes $ 550 million cash tender offer for kennecott copper corporation for all outstanding common shares of carborundum corporation hide by william e.
Although carborundum was a profitable company, with sales growing at a pace of about 15 percent a year, some stockholders felt that the $568 million kennecott paid, about half the money from the sale of peabody and twice carborundum ’ s market value, was too high a group of kennecott stockholders filed a suit to block the acquisition. The new parent company then dissolved kennecott’s corporate structure and absorbed carborundum, qit, chase brass and kmc separately into the sohio organization the english oil company british petroleum (bp) owned 53 percent of sohio at the time of the kennecott takeover. By the mid-1970s, carborundum's success began to attract attention: after fighting off a hostile takeover attempt by eaton corp, carborundum was purchased by kennecott copper corporation for $571 million, which was the second-largest cash tender offer in us history. 1984: kennecott begins the sell-off of carborundum operations jackson leads the management buyout of carborundum uk, the company changes its name to carbo plc.
Of all the bizarre business takeovers in this year of furious financial raiding, one has raised howls of hearty laughter among wall street insiders and others it is the takeover by kennecott copper corp (1976 sales: $956 million), the nation's largest copper company, of the carborundum co, a .