Interco case

It is highly-liquid.

How would you advise the interco board on the $70 per share offer?

They would try to restructure to give better value for shareholders by selling the apparel bussinesses alone or trying another offer, not this inadequate one. However, some assumptions should be questioned: 1 Segments VS Integrity The WPC uses total sales in , average growth rate and average increase in working investment of four departments to estimate the future free cash flow. Thursday, February 2: Advanced Technologies, Inc. Compare the nature of the financial problems facing SureCut with those of Clarkson Lumber. If you need more information, what information do you need? Formerly a footwear manufacturing company, Interco developed into a diversified company that comprised subsidiary corporations in four major business areas: apparel manufacturing, general retail merchandising, footwear manufacturing and retailing, and furniture and home furnishings. This is a healthy trend as Interco was able to take longer to pay off its current expenses than the past. However, if closer examination is undertaken, it is clear to see that the general retail and apparel businesses are struggling while footwear and furniture have been flourishing. The current ratio was 3. This allowed the firm to repurchase share and make acquisitions when the opportunities were there. The general retail business has been stagnant. They were acting to protect their board positions with Interco. The board of directors rejected the proposal of City capital. When looking at the company collectively, Interco also looks healthy, with sales increasing 4.

More on comparables. What conditions or terms would you require?

Interco discounted cash flow

Interco board really did not seem like they were willing to consider any buyout offer and were convinced that they could improve shareholder value by restructuring the company. The board of directors rejected the proposal of City capital. Formerly a footwear manufacturing company, Interco developed into a diversified company that comprised subsidiary corporations in four major business areas: apparel manufacturing, general retail merchandising, footwear manufacturing and retailing, and furniture and home furnishings. In DCF, show more how calculated and assumption missing about other income and corporate expenses. City capital had already accumulated 8. Rales Bothersoffer is just Williams, Which assumptions described in the discount cash flow are not proper? Interco management and Wall Street analysts believed that the apparel groups performance would continue to weaken Intercos overall operations and cause the equity markets to undervalue its common stock. Restructuring was maybe more reasonable because the restructuring would achieve better value for stockholders. Capital expenditure is not change year by year.

Related Interests. Consequenltly, Interco did not want to continue this negotiation. Interco was a viable target for takeover and restructuring. The calculation mentioned above shows some assumptions of WPC when they valuate the stock range of Interco. The general retail business has been stagnant.

What are your reactions to the roles played in Interco's situation by its board of directors? Deduct tax in table 3.

why is interco a target of a hostile takeover attempt give two reasons

In a volatile industry such as semiconductor equipment manufacturing, how useful is long-term financial planning?

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Interco Case Study