Business > CASE STUDY > Case Notes & Answer for Canadian Pacific Ltd Unlocking Shareholder Value in a Conglomerate By Michae (All)
Case Notes & Answer for Canadian Pacific Ltd Unlocking Shareholder Value in a Conglomerate By Michael King, Michael Zawalsky
Document Content and Description Below
In January 2001, the chief executive officer (CEO) of Canadian Pacific Limited (CPL) was contemplating the future of his firm. CPL was one of Canada's oldest conglomerates with operations in railways,... shipping, natural resources and hotels. Its stock market capitalization of CDN$13.5 billion reflected a conglomerate discount, estimated at 12 to 35 per cent of the value. In order to eliminate this conglomerate discount and maximize shareholder value, the CEO weighed the pros and cons of asset divestitures or spinoffs. Would it make sense to keep some of the related business together to preserve economies of scale and scope and to maintain synergies? What would be the tax implications of each option? There were numerous operational and legal implications to consider. Knowing he had to make a decision quickly, the CEO looked for the option that would unlock the most value for CPL's shareholders. [Show More]
Last updated: 1 year ago
Preview 1 out of 15 pages
Buy this document to get the full access instantly
Instant Download Access after purchase
Buy NowInstant download
We Accept:
Reviews( 0 )
$15.00
Can't find what you want? Try our AI powered Search
Document information
Connected school, study & course
About the document
Uploaded On
Aug 05, 2023
Number of pages
15
Written in
Additional information
This document has been written for:
Uploaded
Aug 05, 2023
Downloads
0
Views
106
