Why shares in NEC Electronics, a listed subsidiary of NEC Japan conglomerate trading at a discount to their underlying value? Can Perry Capital, a U.S. hedge fund, restructuring of subsidiaries and significant returns? This case provides students with the opportunity to analyze the decision to invest in NEC Electronics’ Perry. He asks for the reasons that NEC could take actions that destroy value and move NECE value of the minority shareholders. The events covere … Read more »

Why shares in NEC Electronics, a listed subsidiary of NEC Japan conglomerate trading at a discount to their underlying value? Can Perry Capital, a U.S. hedge fund, restructuring of subsidiaries and significant returns? This case provides students with the opportunity to analyze the decision to invest in NEC Electronics’ Perry. He asks for the reasons that NEC could take actions that destroy value and move NECE value of the minority shareholders. The events covered facilitate a discussion about how ownership concentration forcing restructuring alternatives, such as confront hedge fund investors, controlling shareholders could, and as the mispricing of agency costs can ownership that give allow for minority shareholder expropriation.
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from
C. Fritz Foley,
Robin Greenwood,
James Quinn
Source: HBS Premier Case Collection
17 pages.
Release Date: 22 October 2008. Prod #: 209001-PDF-ENG
NEC Electronics HBR case solution