PetroquÃmica BahÃa Blanca (PBB) digest and Valuation Pedro Barbosa LL.M Duisenberg School of pay PBB Analysis and Valuation executive Summary Assessing the supplicate set for a support in an uphill market is such(prenominal) more tricky and complex than assessing a similar spew in a developed market. Dow chemical substance has a serious competitor in the privatization of PBB and should therefore address for its exquisite value or higher. At the end of our psychoanalysis, 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 pretend for the Dow Chemical Company to become the leading polyethylene fake in Latin America However, the company faces competition for the focal point 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 incorpora ting them in the interchange flow projections Calculating an appropriate brush deflexion 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.
mend 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 t han Dow would have more leeway to try to neg! otiate a discount or bid at fair value. endanger 2 shows pecuniary data from Copesul. We burn see that it is a chop-chop ontogenesis company with little debt. Furthermore, Perez Compac is a conglomerate which has already been give 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:
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