Ben and Jerry's Homemade: This case examines issues of asset control for Ben & Jerry's Homemade, Inc., in light of the outstanding takeover offers by Chartwell Investments, Dreyer's Grand, Unilever, and Meadowbrook Lane Capital in January 2000. We can observe the fundamental firm objectives expressed in the company's mission statement and the company's development of a strong social consciousness; but we might question the implications of poor financial performance combined with takeover defense mechanisms to protect management's control of company assets. Should the board defend the agenda of the current management team or should it accept one of the takeover offers?

Study Questions Case 3: Ben & Jerry's Homemade, Inc.

1. Has Ben & Jerry's fulfilled each of the three dimensions of its mission statement?

2. What evidence can you provide regarding its financial performance?

3. Why did Ben & Jerry's become a takeover target?

4. Who ultimately controls the assets of Ben & Jerry's?

5. What is the impact of the asset-control devices used by management and the state of Vermont?

6. What other common takeover defense strategies (both pre-offer and post-offer) could be employed?

7. With respect to the takeover offers currently on the table, are the offer prices high enough?

8. Should the board defend the agenda of the current management team or should it accept one of the takeover offers?

9. What actually happened?