American Cyanamid (A): Boardroom Response to a Hostile Takeover Offer Harvard Case Solution & Analysis

American Home Products' (MAI) $ 9 billion hostile takeover of American Cyanamid (Cyanamid) was the largest M & A deal-acquistions in 1994, and made the AHP's fourth largest pharmaceutical company in the U.S.. At the time of supply AHP in Cyanamid already begun restructuring through the sale of consumer goods companies, spinning off its chemical division and enter into negotiations for the exchange of assets with SmithKline Beecham. AHP engaged in battle, at least in part, to block the asset swap deal. Case takes students in the room and describes the tension generated by the fact that the management of Cyanamid and its outside directors had different views on the feasibility of absorption. On the question of whether the board will approve Cyanamid hostile bid AHP in spite of the fact that the control does not support the proposal and instead supports a lower value of the friendly exchange of assets with SmithKline Beecham. After a tense and painful board meeting, which lasted several days, the board unanimously voted to support the proposal. "Hide
by Karen H. Wruck, Sherry Pelkey ​​Roper Source: Harvard Business School 19 pages. Publication Date: 02 Oct 1996. Prod. #: 897048-PDF-ENG

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American Cyanamid (A): Boardroom Response to a Hostile Takeover Offer

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