Students must report the sale price of shares on the day Colt appreciate after the announcement of a drastic financial restructuring, estimating the value of the securities, the tax shield. Colt shares for $ 66.75 per share sold, and Colt has announced just get a plan calls for shareholders to $ 85 and a new share of stock in the recapitalized Colt for each share of stock held. The cash payment is to be financed by issuing $ 1.5 billion in new debt.

Students must report the sale price of shares on the day Colt appreciate after the announcement of a drastic financial restructuring, estimating the value of the securities, the tax shield. Colt shares for $ 66.75 per share sold, and Colt has announced just get a plan calls for shareholders to $ 85 and a new share of stock in the recapitalized Colt for each share of stock held. The cash payment is to be financed by issuing $ 1.5 billion in new debt.
This is a Darden case study.
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Robert M. Conroy
Source: Darden School of Business
9 sides.
Release Date: 29 March 1991. Prod #: UV0073-PDF-ENG
Colt Industries HBR case solution