Anheuser Baush
Autor: HemantK • October 11, 2016 • Case Study • 665 Words (3 Pages) • 583 Views
MGT 6066: Corporate Restructuring
Case Write-Up
Case: HBS Case 9-291-020/ Anheuser-Busch and Campbell Taggart
Group Members:
Sohaan Shah
Shitij Malhotra
Hemant Killampilli
Soham Nathwani
Siddhant Mohanty
Ans. 1
Yes, Anheuser Busch should sue Paul Thayer and his accomplices(“tippees”) for damages to the firm as estimated below.
Campbell Taggart | |
Volume in June | 240,800 |
Volume in July | 749,300 |
Volume increase | 508,500 |
Price change in June | $1.63 |
Price change in July | $3.25 |
Price change during insider trading | $1.63 |
Insider volume | 170,200 |
Average inside trading price | $26.95 |
Selling price | $35.25 |
Profits (money minted by insiders) | $1,411,550 |
Anheuser-Busch | |
Before insider trading, the Campbell Taggart was @ | $24.88 |
After insider trading Campbell Taggart was @ | $29.63 |
Price increase due to insider trading | $4.75 |
Anheuser-Busch is paying a premium @ | 20% |
Assuming monthly increase to be as that of June | $1.63 |
Increase due to Insider Trading | $3.12 |
Premium paid | $3.74 |
Price for 7.5 million shares of Campbell Taggart | $28,080,000 |
Price for preferred shares of Campbell Taggart | $47,775,000 |
Total estimated loss to Anheuser-Busch (Amount to be sued for) | $75,855,000 |
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