This Case is about Finance, International
Publication Date: 12/04/1996
Before the Onex bid, Labatt was negotiating a merger with Interbrew S.A./N.V., Belgium’s biggest brewer. Individuals close to the discussions indicated they’d heard rumors the Dutch Brewer, Heineken N.V., and others were prepared to make bids. The case is from the standpoint of Wood Gundy, the financial advisor to Labatt. The challenge for the pupil would be to structure a deal in order to optimize shareholder value.
Learning Objective: The goals of this case are to educate pupils about: unlocking shareholder value; the time and execution, and potential marketplace outcomes of negotiation strategies of a deal; creating cost pressure.