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…
The divestiture should be made from a financial perspective and not arbitrarily in order to create more vaule for the firm by breaking the firm into more pieces. Considerations must be made to analyze what effect a carve-out could have on the company? What effect could a spin-off have on the company? What effect could an asset sale have on the company? All these options must be considered in relation to market, firm return and net return.
The main benefit of divestiture is the production of wealth for the parent company. Historically the divestiture of a company has caused a positive Net Present Value (NPV) based on the size of the company based on “Takeovers, Restructuring and Corporate Governance”. “Alchian and Demsetz (1972) and Jensen and Meckling (1976) suggest one reason why corporate divestitures might create wealth. If the divestitures improve managerial incentives or better enable shareholders to monitor managerial performance, then the separation of a corporation into different pieces can improve the efficiency of operations and thereby increase the combined value of the assets.” ...
Cite this document
(“DuPont divests Conoco Case Study Example | Topics and Well Written Essays - 500 words”, n.d.)
Retrieved from https://studentshare.net/other/29803-dupont-divests-conoco
(DuPont Divests Conoco Case Study Example | Topics and Well Written Essays - 500 Words)
“DuPont Divests Conoco Case Study Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.net/other/29803-dupont-divests-conoco.
Lowe’s must focus on the increasing its product, price, place, promotion and people strategies to increase its revenues. In terms of briefly talking about the question, the research is focused on analyzing the difference between the Dupont performance of Lowe’s and Home Depot retail stores.
It is considered one of the foremost in deepwater exploration as well as 3-D seismic technology and reservoir management. Much of its investment is in emerging technologies such as alternative energy, carbons-to-liquids, power generation and technology solutions.
The first international office was founded in November 1978 in Japan called ASCII Japan. With the emergence of Steve Balmer in 1980 who took over Bill Gates as the CEO, the corporation had its first real success in 1981 with the creation of the Disk Operating System (DOS).
Downsizing, mergers, takeovers, buy-outs and restructuring have became a reality of today's corporate environment. As Markets are opening and trade barriers are diminishing, organizations are increasingly required to align them as per the global market place environment.
DuPont's core values for more than 200 years have remained constant: commitment to safety, health, and the environment; integrity and high ethical standards; and treating people with fairness and respect. Because of the recent technology, competitors of DuPont are now adopting advance features to promote their product.
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.
Furthermore, there also existed a contractual relationship between the change agent and the organization, where general goals are identified, which is part of OD practice.
b) Appreciative inquiry- Appreciative
son had arrived the university and was looking for the methods or ways to improve the overall effectiveness of the organization rather finding out the weaknesses and working upon them. The focus on the overall increase in the efficiency of the organization will help in the long