The Acquisition of Unocal corporation
Author: Cohen, Jacob INSEAD Area: Accounting and ControlPublisher: Fontainebleau : INSEAD, 2006.Language: EnglishDescription: 25 p.Type of document: INSEAD CaseNote: Latest version available via https://publishing.insead.eduAbstract: By the summer of 2005, the US and China were crossing swords on a plethora of issues including intellectual property rights, yuan valuation, underwear imports, and nuclear concerns. The friction stemmed from China's rapid rise as a political, military and economic power as well as from US domestic concerns over loss of jobs and the nuclear threats posed by North Korea and Iran. These issues, which had been simmering for quite some time, reached boiling point when Chinese government-owned CNOOC announced its unsolicited bid for Unocal Corporation, a California-based US oil and gas company. Pedagogical Objectives: To discuss (1) equal price versus equal value (2) fiduciary responsibility of board members to maximize shareholder value (3) stock versus cash deals (4) free trade versus fair trade. A key issue raised in this case is the time value of money. What would be the appropriate discount rate for delays in closing the deal? What would be the various percentages to assume for the likelihood of consummation of the deal? The case can be used for business students (undergraduate and graduate) as well as non-degree participants such as business executives attending courses, workshops or seminars.| Item type | Current location | Collection | Call number | Status | Date due | Barcode | Item holds |
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Asia Campus Archives | Consultation only | BC007577 | ||||
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Europe Campus INSEAD Publications Display | Consultation only | BC007576 |
Latest version available via <a href=https://publishing.insead.edu>https://publishing.insead.edu</a>
To discuss (1) equal price versus equal value (2) fiduciary responsibility of board members to maximize shareholder value (3) stock versus cash deals (4) free trade versus fair trade. A key issue raised in this case is the time value of money. What would be the appropriate discount rate for delays in closing the deal? What would be the various percentages to assume for the likelihood of consummation of the deal?
The case can be used for business students (undergraduate and graduate) as well as non-degree participants such as business executives attending courses, workshops or seminars.
By the summer of 2005, the US and China were crossing swords on a plethora of issues including intellectual property rights, yuan valuation, underwear imports, and nuclear concerns. The friction stemmed from China's rapid rise as a political, military and economic power as well as from US domestic concerns over loss of jobs and the nuclear threats posed by North Korea and Iran. These issues, which had been simmering for quite some time, reached boiling point when Chinese government-owned CNOOC announced its unsolicited bid for Unocal Corporation, a California-based US oil and gas company.
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