by Robin Goldwyn Blumenthal
Robin, G. B. (2012). Building the bolide of tomorrow. Barrons, 92(36), 14-15.
SUMMARY: Sh atomic number 18s of bread Bridge & Iron took a braggy hit when the aptitude-infrastructure firm agreed to buy rival Shaw Group. but the deal could be a winner, lifting the stock 50%.
classroom APPLICATION: This article lot be used to argue the business strengths, weaknesses, opportunities and threats facing Chicago Bridge & Iron (CB&I). Students piece of tail discuss its proposed acquisition, focusing on the buyout price, the accretive value to CB&I, and the likeliness of its completion.
QUESTIONS:
1. Why did the shares of Chicago Bridge & Iron (CB&I), take a big hit when it agreed to buy the Shaw Group?
Chicago Bridge & Iron have a strong enroll at managing acquisitions and its long-term strategy. Hoping the company would execute as well up as it has in the past. Its stock could surcharge by 50%.
By what percent above Shaws market value did CB&I offer for Shaw?
72% more than Shaws market value.
What business is CB&I in? What business testament it add if the purchase of Shaw goes through?
They are a construction firm in the energy industry. They will add electricity generation.
4. Where is CB&I based?
What are some advantages of being headquartered outside the U.S.?
CB&I is based in Netherlands with operating headquarters located in Texas.
5. Define stark(a) profit margin. How does Shaws arrant(a) profit margin compare with CB&Is gross profit margin? What can CB&I do to annex Shaws gross profit margin?
Net Income/sales = realise profit margin. Shaws gross profit of 6% is lower than CB&Is gross profit of 12%. Cb&I can keep more pipe fabrication in house and try to bid for the largest projects.
6. How certain is CB&Is acquisition of the Shaw Group? gratify elaborate.
They are very certain because they believe that the acquisition will bring double-digit gains to...If you want to get a full essay, separate it on our website: Orderessay
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