Browse Case Studies by
Case Studies in
- Corporate Governance
- Corporate Social Responsibility
- Economics
- Entrepreneurship
- Finance, Accounting & Control
- Leadership
- Marketing
- Organisational Behaviour / HRM
- Social Entrepreneurship
- Strategy
- All Case Studies »
Concept wise Case Studies
- Mergers, Acquisitions and Alliances - Vol. I
- Mergers, Acquisitions and Alliances - Vol. II
- Mergers, Acquisitions and Alliances - Vol. III
- Mergers, Acquisitions and Alliances - Vol. IV
- Airline Industry
- » All Concept wise Cases
Industry wise Case Studies
- Banking and Financing Services
- Retailing
- Energy and Utilities
- Oil and Gas Refining, Marketing and Distribution
- Commercial Aircraft Manufacturing
- » All Industry wise Cases
Region wise Case Studies
Mergers, Acquisitions, Alliances and Synergies Case Study
Case Title:
P&G's Takeover of Wella : The Stumbling Blocks
Publication Year : 2004
Authors: G.Shrikanth, T Phani Madhav
Industry: Personal Care Products
Region: Germany
Case Code: MAA0011
Teaching Note: Not Available
Structured Assignment: Not Available
OR
Abstract:
When Procter and Gamble (P&G) acquired Wella, the German beauty products giant, the synergies painted a rosy picture. But the company is having its own share of woes with unrelenting minority shareholders refusing to sell the preference shares, expressing their dissatisfaction over P&G's offer. They demanded that the preference shares should also receive the same price as that of voting shares. Even a year after the acquisition, the stalemate continues.
Pedagogical Objectives:
- The case delves into the synergies that P&G sought through Wella's acquisition, and how the differential offer that the company made is stopping it from taking full control of Wella
- The case offers scope to discuss the cross-border takeovers in the light of country-specific regulations. The case in point being the German Takeover Act.
Keywords : Mergers, Acquisitions, Alliances Case Study;Procter and Gamble (P&G); Wella; German takeover act; Preference shareholders; Voting shares; Two-tiered offer; Elliott Associates; AG Lafley; Heiner Gurtler; BaFin; Domination agreement.
