Pedro Barbosa
LL.M Duisenberg School of Finance
PBB Analysis and Valuation
executive Summary
Assessing the supplicate price for a support in an uphill market is much more tricky and complex than assessing a similar project in a developed market. Dow chemical substance has a serious competitor in the privatization of PBB and should therefore address for its fair value or higher. At the end of our analysis, we move up the fair value of PBB to be around 340 million US dollars.
Summary of Facts
The privatization of PetroquÃmica BahÃa Blanca (PBB) is a unique chance for the Dow Chemical Company to become the leading polyethylene actor in Latin America However, the company faces competition for the instruction from the joint venture of Copesul/Perez Compac
Statement of Problem
In this analysis we allow focus on the following problems: Measuring country-specific risks and incorporating them in the interchange flow projections Calculating an appropriate brush aside rate for the project Assessing if there is a competing bid for PBB
PBB Analysis and Valuation
Analysis Competing Bid
low gear of all, as we stomach mentioned above, we will address if there is a competing bid.
While this may seem irrelevant or junior-grade at first glance, it is important to assess whether Copesul/Perez Compac bid for PBB is something that Dow should deal about. If they are serious about acquiring the company Dow has to bid for more than the value it has assessed to be fair. If it were not case than Dow would have more leeway to try to negotiate a discount or bid at fair value. endanger 2 shows financial data from Copesul. We can see that it is a chop-chop growing company with little debt. Furthermore, Perez Compac is a conglomerate which has already been granted a considerable amount of stakes in privatized companies (we can assume consequently that it exerts some political influence). Exhibit 1 shows the projections for polyethylene operating capacity in...If you want to give a full essay, order it on our website: Ordercustompaper.com
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