Business Case Studies,Corporate Governance & Business Ethics Case Study, Dell Going Private

Code : GOV0066

Case Length : 7 pages

Period : 2010- 2020

Organization: Mondelez India Foods Pvt Ltd

Year :2021

Industry : Food & Beverage

Region : Asia

Countries : India

Teaching Note: Yes

Structured Assignment :---------------

Abstract: The case study discusses ace investor Warren Buffett’s Berkshire Hathaway, Inc. (Berkshire) securing a private placement deal with Bank of America Corporation (BoA) in 2011. Berkshire paid US$5 billion in cash to BoA in exchange for Cumulative Perpetual Preferred Stocks and Warrants to purchase 700 million common shares of BoA. Later, in 2017, Berkshire exercised BoA’s warrants and brought 700 million common stock of BoA. This move helped Berkshire to get US$11.50 billion capital gains in six years.

Against the backdrop of this story, the case helps learners understand warrants and various related financial instruments and concepts. It helps them get to know about the significance of warrants, different types of warrants, and how stock warrants are useful to the issuer and investor, among other things. Additionally, it also helps them understand the difference between a stock warrant, employee stock option, and option