Interco has been guided by Wasserstein Perella to not acknowledge an idea of $70 per share for the association. The case displays the various kinds of evaluations utilized by Wasserstein Perella and energizes a dialogue of the choices relating to Interco's board just as Wasserstein Perella.
Comparable Transaction Analysis
Business Segment 1988 Sales Multiple Range Value Range Median Value Business Segment 1988-Operating Cash Flow Multiple Range Value Range Median Value
Interco Balance Sheet
Interco Segments Financial Information
Daily Stock Price of Investo
Monthly Stock Price of Investo
Assess Interco's financial performance prior to the Rales brothers' offer. Why doyou think the company was a target of a hostile takeover attempt?
As a member of Interco's board are you persuaded by the premiums paid analysisand the comparable transactions analysis? Why?
Wasserstein, Perella & Co. established a valuation range of $68-80 per commonshare for Interco. Show that this valuation range can follow from the assumptionsdescribed in the discounted cash flow analysis provided (exhibit 12). As a member ofInterco's board, which assumptions might you have questioned?
What are your reactions to the roles played in Interco's situation by its board ofdirectors? by Wasserstein, Perella & Co.?