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The Aquisition of Martell

By Roy Smith,  Ingo Walter
Published 01 Jan 1989
Reference 4416
Topic Economics & Finance
Industry Food and Beverages Production,  Wine and Spirits
Region Europe
Length 14 page(s)
Inspection copy
Teaching note
6.00
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Prizes & Awards

Winner of 1993 European Case Awards, Finance Category

Summary

This case study is a description of the contested takeover of Martell & Cie by Joseph Seagram & Sons in 1987. Students are required to assume the role of one of four main participants in the events surrounding the acquisition: Martell-Martell (France), Joseph Seagram & Sons (Canada), Grand Metropolitan plc (UK) and the French Ministry of Finance. Each student performs a valuation analysis of Martell and assesses the strategic importance of its acquisition to both Seagram and Grand Met. Each also decides what is in the best interests of the Martell shareholders and what actions are likely to advance those interests. In addition, they must analyse the position of the French government with respect to the transaction, and the action it is likely to take in response to the situation as of New Year's Eve, 1987.

About the authors

Roy Smith

Walter

Ingo Walter

Visiting Professor of Economics and Political Science

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