Ben & Jerry 's Homemade Should Approve Fer From Unilever For $ 36.00 ( Cash ) Per Share

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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. 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... ... middle of paper ... ... 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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