This case is about growth strategy publication date: january 05, 2012 product #: cu127-hcb-eng following a successful split-away of conoco in 1999, management at dupont participated in a decade-long challenge to reposition the business from a mature global petrochemical business to a leader in biotechnology. (“spin offs,” 2013) in the example case of dupont, the 1998 divestiture of conoco was completed as a way to raise new capital when dupont purchased conoco in 1981, oil was selling for as much as $35 per barrel. Fi561- mergers and acquisitions week 5 case study: dupont divestiture of conoco november 27, 2011 abstract in this paper, we are examining the 1998 dupont spin off of conoco by analyzing the transaction itself. Why do you think dupont management structured why do you think dupont management structured the second-stage divestiture of conoco as a split-off rather than as a conventional spin off this question comes from the harvard case: e i dupont de nemours and co. Du pont-conoco split off in october 1998, du pont generated $44 billion from an initial public offering of 30% of the shares of its conoco unit dupont, through this proposed stock swap, planned to divest itself of its remaining stake of 70% in conoco.
Ba 142 case 2 executive summary e i du pont de nemours is an american chemical company that has recently acquired the major oil company of conoco inc and is becoming one of the largest chemical manufacturers in the united states. The transaction involving conoco consisted of a two-stage transaction first an equity carve out occurred in 1998 for 30% of conoco shares then in 1999 the other 70% were divested by a “variant of a spin-off” which is an exchange offer where dupont shareholders choose between keeping their shares or exchanging the stock for parent stock. In addition to classic buyout and structuring case studies, this second edition includes coverage of delphi, general motors, the finova group and warren buffett, kmart and sears, adelphia communications, seagate technology, dupont-conoco, and even the eurotunnel debt restructuring. Answer the following question based on the case study, business and finance homework help only questions posted as public are visible on our website answer the following question based on the case study, business and finance homework help anonymous please find case and the questions attached attachments dupont_conoco_case.
The conocophillips company has a long and solid tradition of safety at work conoco’s products range from crude oil, natural gas and natural gas liquids to reﬁned products, such as motor oil, other lubricants and petroleum coke. Dupont will have access to cash from the ipo and, at the same time, will benefit from conoco's ongoing financial contribution as we consider the options for divestiture. Search results for 'dupont's divestiture of conoco' finance 561 keller paper on dupont week 5 - you decide - case study - dupont's divestiture of conoco tab manning keller graduate school of management mergers and acquisitions 562 professor gene smith. Corporate restructuring, fall 2006 professor karin s thorburn 1 (10) tuck school of business case: ei du pont de nemours and company: the conoco split-off (a), divestiture of conoco as a split-off rather than as a conventional spinoff 5 the limited’s splitoff of its abercrombie & fitch unit was structured as a “modified. Dupont sustainable solutions (dss), a business unit of dowdupont specialty products division, is a leading provider of world-class operations management consulting services to help organizations transform and optimize their processes, technologies and capabilities.
Alternative title michigan state university: a case study in divestment author/creator american committee on africa contributor nessen, joshua as a result of divestiture, approximately $1 million 2)the money value of the stocks msu sold was significant, over conoco, communications satellite, dupont, general signal, hughes tool. After 30% of the conoco oil and gas subsidiary public in the largest domestic initial public offering (ipo) in us history, the administration of ei du pont de nemours and co (dupont) is considering spinning off its remaining interest income on conoco. - dupont plant is a major manufacturing employer which sits on 10 acres by the south river according to the case study by the palmer, dunford & akin (2009) although the plant has been in the community for a number of years, it has undergone many changes (palmer et al, 2009. As part of divestiture, dupont would allow us investors to trade each share of dupont stock for 295 shares of conoco, up to a total of 148 million dupont shares, on a tax-free basis the conoco split-off was seen as a critical test of holliday's leadership. The divestiture of conoco by dupont also reflected changing conditions in the energy industry as noted in a may 12, 1998, article in the new york times: dupont bought the oil company in 1981 as insurance against the pricing and supply tactics of the organization of petroleum exporting countries.
Develop a proposal and process to implement this divestiture, whereby we at dupont maximize our shareholder value your recommendation may be one stage or two-stage when you develop your specific recommendation, tell us specifically how it will work, and how it will benefit dupont, our shareholders, and conoco. The conoco split-off (c) case study solution, ei du pont de nemours and co: the conoco split-off (c) case study analysis, subjects covered diversification ipo recapitalization reorganization stockholders valuation by stuart c gilson, perry l fagan source: harvard business sc. Daniel young fin 561 dupont case study week 5 dupont’s divestiture of conoco intro dupont purchased conoco in 1981 and it was the largest merger in corporate history at that time the purchase gave dupont a secure source of petroleum feed stocks needed for many of its fiber and plastics operations. The conoco split-off (a) case study solution, after taking 30% conoco oil and gas public office in the largest domestic initial public offering (ipo) in us history, management ei dupont de nemours . The study’s empirical analysis shows that companies that follow three leading practices are more likely to initiate divestments that have a higher sale price and increase the remaining company’s valuation multiples post-sale.
Please note: the closing trading prices of dupont and conoco class a common stock on july 8 1999 were $68625 and $27375 respectively proper formatting in case you have already finished writing your paper but you are unsure of the format, you can present it to one of our editors. Corporate restructuring, fall 2005 professor karin s thorburn 1 (10) the course is intended for students with an interest in studying the financial, strategic, and business issues surrounding corporate restructuring. This case was prepared by michael valente at the schulich school of business at york university it is intended to dupont cleaning products division stuart heggie, business manager of dupont’s household and institutional cleaning petroleum company conoco6 the 1980s also saw dupont branch out into the life sciences the company began to.
Case study of dupont divestiture of conoco dupont divestiture of conoco by masters of business administration professor: robert popovitch fin case studies, p 19-34 historical and biological background the causes of congenital (birth) defects in humans are not well understood although specific drugs and environmental chemicals cause. The divestiture of conoco by dupont also entailed a two-stage transaction the equity carve-out in october 1998 represented 30% of conoco’s shares the remaining 70% was subsequently divested in august 1999. Ei du pont de nemours and co: the conoco split-off (a) case analysis, ei du pont de nemours and co: the conoco split-off (a) case study solution, ei du pont de nemours and co: the conoco split-off (a) xls file, ei du pont de nemours and co: the conoco split-off (a) excel file, subjects covered diversification ipo recapitalization reorganization stockholders valuation by stuart c.