Philip Morris, Incorporated: Seven Up Acquisition (a)

31 Pages Posted: 21 Oct 2008

See all articles by Diana Harrington

Diana Harrington

affiliation not provided to SSRN

Deborah Lalor

affiliation not provided to SSRN

Abstract

Management is faced with the evaluation and pricing of Seven-Up. The case describes Philip Morris since its acquisition of Miller Beer and Seven-Up as an acquisition candidate. (The B case is UVA-F-0479, and the C case is UVA-F-0480.)

Excerpt

UVA-F-0478

PHILIP MORRIS, INCORPORATED:

SEVEN UP ACQUISITION (A)

Introduction

The decision had been made. Philip Morris, Inc., (PM) was going to make a takeover bid for the Seven Up Company. The difficulties and intricacies of that decision paled, however, in the face of the next one: At what price should PM management make its tender offer?

It was the latter half of April 1978, and in the face of an increasingly active merger/acquisition market, PM management recognized the need for the utmost speed and secrecy in developing its bidding strategy.

. . .

Keywords: acquisitions, cash flow, mergers, model evaluation, strategy formulation, valuation

Suggested Citation

Harrington, Diana and Lalor, Deborah, Philip Morris, Incorporated: Seven Up Acquisition (a). Darden Case No. UVA-F-0478, Available at SSRN: https://ssrn.com/abstract=909044 or http://dx.doi.org/10.2139/ssrn.909044

Diana Harrington (Contact Author)

affiliation not provided to SSRN

No Address Available

Deborah Lalor

affiliation not provided to SSRN

No Address Available

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