This is the first of a two-case series (106-047-1 and 106-048-1). Between October 2003 and July 2004, Cole National (CNJ), one of the key players in the American retail optical market, was subject to an intense offer/counter-offer battle. Competing bidders were Luxottica, on one side, and Hong Kong-based Moulin International on the other. The competition between potential bidders caused a rise in offer prices from the initial unsolicited and unnamed US$19.65 cash per share offer to Moulin's final July 2004 counter-offer of US$25 cash per share. This increase in the offer price raised different questions as to the correct definition of the offer price and of the potential synergies arising from the deal. The case challenges MBA students and corporate executives to concentrate on identifying benefits that Luxottica could gain from the integration with Cole National and, as a consequence, on defining a suitable price range in order to decide either to top Moulin International's US$25 cash per share offer or to give up the battle for Cole. The case provides all the relevant information necessary to perform a complete valuation and determine a price range for CNJ (with particular attention to the top prices to potentially pay for the acquisition).
Luxottica-Cole National: acquisition dynamics in the optics sector [Part A + Part B]
GATTI, STEFANO;
2005
Abstract
This is the first of a two-case series (106-047-1 and 106-048-1). Between October 2003 and July 2004, Cole National (CNJ), one of the key players in the American retail optical market, was subject to an intense offer/counter-offer battle. Competing bidders were Luxottica, on one side, and Hong Kong-based Moulin International on the other. The competition between potential bidders caused a rise in offer prices from the initial unsolicited and unnamed US$19.65 cash per share offer to Moulin's final July 2004 counter-offer of US$25 cash per share. This increase in the offer price raised different questions as to the correct definition of the offer price and of the potential synergies arising from the deal. The case challenges MBA students and corporate executives to concentrate on identifying benefits that Luxottica could gain from the integration with Cole National and, as a consequence, on defining a suitable price range in order to decide either to top Moulin International's US$25 cash per share offer or to give up the battle for Cole. The case provides all the relevant information necessary to perform a complete valuation and determine a price range for CNJ (with particular attention to the top prices to potentially pay for the acquisition).File | Dimensione | Formato | |
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ECCH_part_A.pdf
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ECCH_part_B.pdf
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ECCH_teaching_note.pdf
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