Didier Pineau-Valenciennes (DPV), the CEO of Schneider SA, a leading French multinational company in the electrical distribution and industrial automation, is the prospect of failure of the joint venture talks with the U.S. company Place D. The negotiations have faced already consumed two and a half years. Mr. Pineau-Valenciennes have to decide whether to call the discussion and moving ahead with a bid for the U.S. company, and if so, to determine how much to pay for Squa … Read more »

Didier Pineau-Valenciennes (DPV), the CEO of Schneider SA, a leading French multinational company in the electrical distribution and industrial automation, is the prospect of failure of the joint venture talks with the U.S. company Place D. The negotiations have faced already consumed two and a half years. Mr. Pineau-Valenciennes have to decide whether to call the discussion and moving ahead with a bid for the U.S. company, and if so, to determine how much to pay for Square D’s equity. The case deals with issues of strategic fit between the bidder and the target, the target performance rating (both base case and synergies), funding decisions are associated with the acquisition, and how the target poison pills and anti-takeover amendments could affect the results in the fight for control of the Group. Another aspect of the case relates to making decisions with participants in the shoes of risk arbitrageurs on Wall Street, by invitation to play on ‘buy-sell-hold “. This includes the formation of judgments about Schneider moved and Square D’s counter moves and DPV (and their own) estimates how high the price is likely to pay if the purchase will be running.
This is a Thunderbird Case Study.
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from
Anant K. Sundaram
Source: Thunderbird School of Global Management
23 pages.
Publication Date: Jan 15, 1997. Prod #: TB0207-PDF-ENG
Schneider S.A. And Square D HBR case solution