Unicorp Canada Corporation owned 13.8% of Union Enterprises and was poised to buy another 16.3%. Union Enterprises must formulate a strategy for a hostile takeover. A central issue is how to finance the deal. One of the strengths of the case is the ability to illustrate a wide range of offensive and defensive strategies. (A related case is available, titled Unicorp Canada Corporation, case 9A90B035.)

The vice-president and chief financial officer of Unicorp Canada Corporation, had to decide on the price, form and conditions of an offer for shares of Union Enterprises Ltd. (UEL) based on Unicorp's objectives for the investment, its financial resources, the underlying value of UEL, and his assessment of the probabilities of the possible outcomes of the takeover bid. He then needed to develop a strategy for the presentation of the bid to UEL .....more

Unicorp Canada has announced a tender offer for Union Enterprises Ltd. Unicorp management must devise a strategy subsequent to the hostile takeover offer. The case illustrates the full range of actions, from political to scorched earth, available to a target in defending itself in a hostile situation. (This is a sequel to Unicorp Tender for Union Enterprises (A), case 9A90B034.)