Question
After reveiwing the USX corp. Harvard case(296050), answer the following questions. 1. Explain the relative merits Icahns proposal (spin-off) vs. the companys proposal (targeted stock)
After reveiwing the USX corp. Harvard case(296050), answer the following questions.
1. Explain the relative merits Icahns proposal (spin-off) vs. the companys proposal (targeted stock)
-USX management perspective:
Why will targeted stock benefit shareholders?
Why is a spin-off a bad idea?
-Carl Icahn perspective:
Why is targeted stock a bad idea?
2. For what companies is targeted stock most appropriate? Least appropriate?
3. What other options should the company consider besides targeted stock or a spin-off?
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Analysis for Financial Management
Authors: Robert C. Higgins
12th edition
1259918963, 9781260140729 , 978-1259918964
