The case illustrates the consequences of the first share repurchase tender offer in the UK. What makes the case rather unique is that "financial innovation" is being dealt with here and that management behaved very differently from typical behaviour in the US: they massively tendered their own shares. The repurchase is evaluated from the standpoint of the corporation and from the standpoint of the investor ("Ted Miller") who has to decide whether, in spite of the managerial tendering behaviour, he should hold on to the stock.
The case invites students to explain the price behaviour around repurchase tender offers and discusses the motivations for the buyback.
