Ben & Jerry’s Homemade
• Ben & Jerry’s Case
• Student Presentations
• Financial Institutions
Key Questions
• How did Ben & Jerry’s become a target?
• What evidence is there that shareholders are
dissatisfied with the company’s performance?
• Didn’t shareholders know company had other
priorities besides profit?
• What other stakeholders have an interest in
this takeover?
ROE Performance
Year
1994
1995
1996
1997
1998
1999
ROE
-2.6%
7.5
4.7
4.5
6.8
8.9
30 Year T-Bonds
7.9%
6.0
6.6
5.9
5.1
6.5
Common Takeover Defenses
Pre-offer
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Supermajority
Dual class recapitalization
Staggered board
Poison pill
Poison put
Golden parachutes
Fair-price amendment
Common Takeover Defenses
Post-offer
•
•
•
•
•
•
•
Management buyout
White knight
White squire
Greenmail
Asset restructuring
Liability restructuring
Management resignation
What is a Fair Value for the
Company?
• Benchmarks
• Comparable firms
• Valuations
Financial Institutions
• Types of institutions
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–
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Banks
Insurance companies
Pension funds
Mutual funds
Hedge funds
• Payment mechanism
• Borrowing and lending
• Pooling risk
Next Class
• Presentation by State Farm Investment
Department
– Fixed income investing
• Review for midterm exam
– Exam is Tuesday, March 6, during class