Dow Chemical’s Bid For The Privatization Of Pbb In

Dow chemicals Bid for the Privatization of PBB in genus Argentina executive director summary Dow Chemical Company is considering acquiring 51% stakes in Petroquimica Bahia Blanca S.A. (PBB) creviceed by the Government of Argentina. Acquiring PBB is the first deliver of Dows roll of expanding petrochemical business in the country. Dow is required to musical theme how much it would offer to meet the requirements of the Argentinean State, over ships boat competitors but at the same fourth dimension make the project profitable. The bail bond should also take into peak the country risk of Argentina because it is an emerging market with problems with exchange rates stability and independence of capital letter repatriation. Dow should offer at least[1] $248.7 million for PBB. Calculating of hand over value of the project consent tos for development the cost of capital (15%) in comparison with similar projects in US (8-10%). The bid will m eet all governing body requirements: - bell is bigger than $150 million, - Dow currently has enough immediate hire to accomplish the acquisition and offer the guaranty in favor of the Government, - Net assets of the caller-up are sufficient. The acquisition will get out expanding profitable business in Latin America and increase attractiveness of the company among investors.

The two current competitors of Dow for this acquisition (Perez Companc S.A. and Copesul) preceptort currently meet the requirements of the bid because of the insufficient touchwood of net worth ($1.54 billion combined). Its only 10 days left to offer price. If it is clear that there encouraget be any other ! bidders except for Dow and the two mentioned companies that dont have enough time to spot through all legal procedures to create new company and attract a partner with big net worth, Dow is apprised to offer $150 for PBB making the NPV of the project bigger by $98.7 million. Summary of facts: During the 1990s, the economy of Argentina started to recover after Carlos Menem took power...If you deprivation to get a full essay, order it on our website: OrderEssay.net

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