Ben & Jerry's Homemade Case Study

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Ben & Jerry’s Homemade Case Study #2 Upon review, Ben & Jerry’s Homemade should approve the offer from Unilever for $36.00 (cash) per share. In reviewing the offers two questions were presented. The two questions included: the social mission of Ben & Jerry’s surviving a takeover, and maintaining the best interests of the shareholders. To follow, will be the justification for the Unilever offer, alternative offers, and the risks that are involved with a possible takeover. Upon reviewing the four offers, Unilever proposes the best overall offer, in regards to maintaining the interests of the shareholders and the social mission of Ben & Jerry’s. Besides the $36 per share offer price, Unilever has three additional portions to their proposal. …show more content…

However, with some management staying on board, there is a possibility of compromise between the companies, in regards to social contribution (see Social Donation. Excel). If Ben & Jerry’s would lower the percentage of contribution from 7.5% to 5% or lower the amount of donation would have been less than $500,000 in 1999. A compromise in this regard, would benefit Unilever in keeping more profits in house, and help Ben & Jerry’s maintain their reputation of a social contributor. Along with a compromise of their social endeavors, Ben & Jerry’s can target a higher offer price in negotiations. Unilever has already increased in their offer before their most recent one, and may raise it again. Though Ben & Jerry’s is suffering raising stockholder value, they still own a large share of the market space at 45%. This and having the third highest price/earnings ratio of comparable companies (see Exhibit 6), gives Ben & Jerry’s leverage to ask for an increase in Unilever’s offer, to at least $42, which is twice the amount of Ben & Jerry’s current market …show more content…

Those alternatives are to: not accept an offer, or accept either Dreyer’s Grand, Meadowbrook Lane, or Chartwell’s offer. In not accepting an offer, Ben & Jerry’s would be in the same the place they are in now, and that is not improving the value for their shareholders. It is for that reason that, not accepting an offer is not a recommended alternative. The second alternative is to accept Dreyer’s Grand offer of $31 (stock) per share. The main points of Dreyer’s Grand proposal is to maintain management and to encourage social endeavors. This proposal does keep the social mission of Ben & Jerry’s intact but compared to the other offers, brings the lowest value to the

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