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Spreadsheet for product 9B02N013.

Two large oil and gas companies agree to merge to form Husky Energy Incorporated. An individual investor has received the information circular with respect to the transaction and has gathered some other information about the merger. She must decide whether the offer is attractive enough for her to vote her proxy in favour of the transaction and tender her shares. The case provides an opportunity for students to evaluate the acquisition from the unique perspective of an individual investor holding shares of the target company. Extensive data is provided on comparable firms and transactions allowing for ratio-based valuation of the transaction. This valuation is complicated by the fact that payment to shareholders consists of both cash and shares. Information is also provided that allows for a general discussion of the takeover process as well as the pros and cons of using a takeover as a means of going public (a reverse takeover).