Corporate Governance: The Jack Wright Series (9) Dealing with External Pressures

Abstract

This case finds Jack Wright, now chairman of the Mega Corporation board, having to deal with an offer from a director to buy the company, in either a friendly or unfriendly fashion. This case is taught together with case 9 in the series. Excerpt UVA-OM-1092 Rev. May 16, 2011 CORPORATE GOVERNANCE: THE JACK WRIGHT SERIES (10) Dealing with External Pressures Three weeks after the special board meeting at which Sally Bigger Moses was elected chairman, Herman Abrams called her and said he was prepared to make an offer of $ 35 per share for the company. The offer was to be 60% cash and 40% stock in the new company. He said that he would prefer that it be a friendly transaction but that he was prepared to make a hostile bid if the board didn't cooperate with him. What should Bigger Moses do? This case was prepared by Wallace Stettinius, Visiting Lecturer, George W. Logan, Lecturer in Business Administration, and John L. Colley, Jr., Almand R. Coleman Professor of Business Administration. It was written as a basis for class discussion rather than to illustrate effective or ineffective handling of an administrative situation. Copyright a 2003 by the University of Virginia Darden School Foundation, Charlottesville, VA. All rights reserved. To order copies, send an e-mail to . No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of the Darden School Foundation. . . .