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. Their proposal discusses: management, the business itself, and the social aspect of Ben & Jerry’s.
In keeping the $36.00 offer and the best interests of the shareholders in mind, Unilever offers the best monetary proposal. At $36.00 (cash) per share, it is $4.00 higher than Meadowbrook Lane’s offer of $32 (cash) per share. With Ben & Jerry’s current stock price at $21.00, the $36.00 offer would result in a $15.00 gain on each share, for the shareholders. Looking at the market capitalization of Ben & Jerry’s and Unilever, shows a stark contrast in company size (see Market Cap. Excel). Ben & Jerry’s market capitalization is valued at $158,801,769 or .88% of Unilever’s $18 billion market capitalization, which is the largest of any of the offering companies.
The second focus of Ben & Jerry’s in a possible takeover is the survival of their social mission. From its incorporation in 1978, giving back to the community has been a key factor in the day-to-day activities of Ben & Jerry’s. However, in the proposal of Unilever, a portion of...
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... the state of the economy in regards to if the offer in best for their company. Though these three risks could come factor into the offer. It is in Ben &Jerry’s best interests to accept an offer of some kind, in order to survive as a company, in which the above risk would not be a factor.
Overall, the recommendation is for Ben & Jerry’s to accept the offer of Unilever for $36.00 (cash) per share. Of the four offers, Unilever offers the greatest increase in shareholder value. At the same time, Unilever’s offer does diminish the social contributions of Ben & Jerry’s. However, with a portion of management staying on, Ben & Jerry’s has a chance due to Unilever’s high market capitalization, that Ben & Jerry’s can retain some portion of their social contribution. It is therefore in the best interest of both companies to move forward with the offer Unilever has proposed.
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