The CEO of Amtelecom Group Inc. (AGI) is a recommendation to the Board on the best way to sell its subsidiary Amtelecom communication. AGI owns and operates ICS Courier, a national fixed-route courier business and Amtelecom Communications, a regional telecommunications, cable TV and Internet business. Amtelecom Communications Capital does not meet the requirements, because money is diverted to ICS Courier to cover its losses. In addition, AGI st … Read more »

The CEO of Amtelecom Group Inc. (AGI) is a recommendation to the Board on the best way to sell its subsidiary Amtelecom communication. AGI owns and operates ICS Courier, a national fixed-route courier business and Amtelecom Communications, a regional telecommunications, cable TV and Internet business. Amtelecom Communications Capital does not meet the requirements, because money is diverted to ICS Courier to cover its losses. In addition, AGI share was performing poorly. To alleviate these problems, the Board has decided to sell Amtelecom Communications. The three sales alternatives will be considered: sale to a strategic buyer, IPO through a common stock offering, IPO and an income trust offering
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from
Craig Dunbar,
Andrew Cogan
Source: Ivey Publishing
32 pages.
Publication Date: Nov 26, 2004. Prod #: 904N14-PDF-ENG
Amtelecom Group Inc. HBR case solution

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