Question
You are the CEO of a public company that has really struggled the past few years. Your stock has really lagged the market and despite
You are the CEO of a public company that has really struggled the past few years. Your stock has really lagged the market and despite trying a number of different strategies, you and your senior management team are unable to get the price of the stock up. You are approached by an activist shareholder (think about Nelson Peltz) who offers to purchase the company for a stock price that is 30% higher than the stock price today. There are no other interested buyers willing to come in with a higher offer. You know that his normal course of action following an acquisition is to close the company headquarters and lay off a significant number of employees. Ethically, should you take the offer if you are operating in the best interests of shareholders ? How about for and other stakeholders, such as employees, creditors, suppliers, and the community that you are in? points). Do the answers differ? If so, why?
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