CASE ASSIGNMENT QUESTIONS (Write no more than 3 pages, excluding eventual annexes)
1) Evaluate the strategic merits of combination between Jaguar and either Ford or General Motors. What are the sources of value created, if any, by such a combination? How should it be structured? (e.g., as a merger, as a joint venture, a minority interest, etc.) to capture the value you identified?
As the question is to evaluate strategic merits between Jaguar and its future partner and the value created by any combination the sources of value that will be created will be the following. First of all the so much needed financial aid, Jaguar will be provided by the partner. As a second value that will be created will be a very Sir John fight for remaining impendent will definitely give him a win on the stock price because the British people value that the company is domestic and in the past it has shown that with Jaguar being British, sales has risen. 5) Devise tactics for Sir John to emply to maximize value for jaguar’s shareholders. Specifically, how should Sir John respond to Ford’s actions on October 16? Please be explicit about whether your goal is to remain independent, be acquired by Ford, or sell a minority interest to GM. Be sure to consider likely responses from: GM, Ford, Jaguar’s unions, the DTI, arbitrageurs, and Jaguar’s institutional shareholders. I think that Sir John should sale the minority interest to GM because that way he will keep his independence and in the same time he will maximise its value to the shareholders. At the same time Ford will get the cost efficiency, research and development technology, marketing and promotional expertise and the financial aid that is needed. This will also contribute to increasing the value of the
