Canadian Pacific Ltd: Unlocking Shareholder Value in a Conglomerate Harvard Case Solution & Analysis

CPL was one of Canada's oldest conglomerates with businesses in railways, transportation, natural resources and resorts. Its stock market capitalization of CDN$13.5 billion reflected a conglomerate reduction, estimated at 12 to 35 per cent of the value. Optimize shareholder value and to be able to remove this conglomerate reduction, the CEO considered the pros and cons of spinoffs or asset divestitures.

Would it make sense to keep some of the related business together to maintain synergies and to sustain economies of range and scale? What could be the tax consequences of every choice? There were numerous operational and legal consequences to take into account. Understanding he was required to make a decision fast, the CEO looked for the substitute that would unlock the most worth for the stockholders of CPL.

PUBLICATION DATE: June 25, 2014 PRODUCT #: W14241-HCB-ENG

This is just an excerpt. This case is about FINANCE & ACCOUNTING

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