award

The Aquisition of Martell

Published 01 Jan 1989
Reference 4416
Region Europe
popular
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.