Case Study Analysis and Solutions

Case ID: 204021

Abstract:
Case Solution & Analysis for Dow Chemical's Bid for the Privatization of PBB in Argentina by Mihir A. Desai, Alexandra De Royere
What price should Dow Chemical bid for PBB, a petrochemical complex that is being privatized by the Argentine government? To answer this question, students are forced to consider the role of country risk, the underlying currency exposure of the business, and how to value an investment opportunity that has several stages. Given that it is a privatization, students are also forced to consider the political dynamics involved, the incentives of local managers, and the bidding process of a privatization. The case provides detailed cash flows and discount rate information, allowing students to conduct a thorough valuation for an emerging markets project.

Keywords:
Acquisitions, Bids, Country analysis, Emerging markets, Exchange rates, International finance, Investments, Multinational corporations, Privatization, Project finance, Valuation, Dow Chemical's Bid for the Privatization of PBB in Argentina Case Solution

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