In 1988, USG gypsum was the world’s largest producer and one of the world’s largest building products company. On 2 Announced in May 1988 USG Board of Directors a proposed leveraged recapitalization plan to thwart a hostile cash tender offer by Desert Partners. With only one week before the tender offer was scheduled expires, the shareholders must decide whether to wait or to tender their shares and vote for the recapitalization.

In 1988, USG gypsum was the world’s largest producer and one of the world’s largest building products company. On 2 Announced in May 1988 USG Board of Directors a proposed leveraged recapitalization plan to thwart a hostile cash tender offer by Desert Partners. With only one week before the tender offer was scheduled expires, the shareholders must decide whether to wait or to tender their shares and vote for the recapitalization.
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from
Benjamin C. Esty,
Tara L. Nells
Source: Harvard Business School
15 pages.
Release Date: 5th December 1996. Prod #: 297052-PDF-ENG
USG Corp. HBR case solution

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