Ben & Jerry’s Homemade Ben & Jerry’s Case Student Presentations Financial Institutions

Key Questions How did Ben & Jerry’s become a target? What evidence is there that shareholders are dissatisfied with the company’s performance? Didn’t shareholders know company had other priorities besides profit? What other stakeholders have an interest in this takeover?

ROE Performance Year ROE 30 Year T-Bonds 1994 -2.6% 7.9% 1995 7.5 6.0 1994 -2.6% 7.9% 1995 7.5 6.0 1996 4.7 6.6 1997 4.5 5.9 1998 6.8 5.1 1999 8.9 6.5

Common Takeover Defenses Pre-offer Supermajority Dual class recapitalization Staggered board Poison pill Poison put Golden parachutes Fair-price amendment

Common Takeover Defenses Post-offer Management buyout White knight White squire Greenmail Asset restructuring Liability restructuring Management resignation

What is a Fair Value for the Company? Benchmarks Comparable firms Valuations

Financial Institutions Types of institutions Banks Insurance companies Pension funds Mutual funds Hedge funds Payment mechanism Borrowing and lending Pooling risk

Next Class Presentation by State Farm Investment Department Fixed income investing Review for midterm exam Exam is Tuesday, March 6, during class