THE WM. WRIGLEY JR. COMPANY Team 14 Constantine Brocoum Courtney Delia Stephanie Doherty David Dubois Radu Oprea November 19th‚ 2009 Contents Objectives 1 Management Summary 2 Item 1 2 Sub 1.1 2 Sub 1.2 2 Conclusion 2 Item 2 2 Sub 2.1 2 Conclusion 2 Item 3 2 Sub 3.1 2 Sub 3.2 2 Conclusion 2 Item 4 2 Item 5 2 Appendices 2 i. Objectives This report seeks to answer the following five questions about William Wrigley Jr.: 1. In the abstract‚ what is Blanka
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Abstract In April 2005‚ Wm. Wrigley Jr. company announced plans to issue $3 billion of debt. The conundrum that it faced was whether it should use the funds to repurchase shares or pay dividends‚ with both options having different implications on the firm. This report provides a comprehensive analysis of the firm‚ both before and after recapitalisation‚ in order to recommend a solution. It encompasses the appropriateness of the new debt level and Wrigley’s ability to service it‚ while also considering
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Warren E. Buffett‚ 2005 Case Questions: 1. What is the possible meaning of the changes in stock price for Berkshire Hathaway and Scottish Power plc on the day of the acquisition announcement? Specifically‚ what does the $2.17-billion gain in Berkshire’s market value of equity imply about the intrinsic value of PacifiCorp? Based on the multiples for comparable regulated utilities‚ what is the range of possible values for PacifiCorp? What questions might you have about this range? Assess the bid for
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William Wrigley Jr.‚ now referred to as the “father of chewing gum‚” made chewing gum known to the world. He is known for his Wrigley Chewing Gum and starting the William Wrigley Jr Company‚ a manufacturing business without even going to college. The company took previously invented gum‚ and made it into its own very successful business. William Wrigley Jr. was born on September 30‚ 1861 in Philadelphia‚ Pennsylvania. His parents were William Wrigley and Mary A. Ladley Wrigley. He was the oldest
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Inside M&A: Mars Buys Wrigley in One Sweet Deal Extracted from DePamphilis‚ “Mergers‚ Acquisitions‚ and other Restructuring Activities” Under considerable profit pressure from escalating commodity prices and eroding market share‚ Wrigley Corporation‚ a U.S. based leader in gum and confectionery products‚ faced increasing competition from Cadbury Schweppes in the U.S. gum market. Wrigley had been losing market share to Cadbury since 2006. Mars Corporation‚ a privately owned candy company with
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finding success selling gum‚ Mr. Wrigley knew he had to engage in an aggressive marketing campaign to reach as many clients as he could. In order to do this‚ Wrigley had to mortgage everything to be able to raise the funds‚ which he did. The campaign proved to be a huge success‚ making Wrigley gum a household name. William created a company which respected employee rights and employees with benefits.Working at Wrigley‚ employees had Saturday and Sunday off. A job at Wrigley was a desirable job. During
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Marketing Plan | Altoids | 5/26/2009 | | Executive summery This marketing plan is based on Altoids‚ which in an American product introduced into Australian market. Altoids are produced by Wrigley a US based company. In order to increase the market share Altoids will be introduced into Australian market through retailers by distribution and promotion. The PEST and SWAT analysis states that there is good scope of new confectionary items being
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considering a recapitalization that involves issuing debt and repurchasing equity. UST has a long history of a conservative debt policy. However‚ in 1998 they reinstituted their share buyback program. This means that they intended to issue up to $1 billion in debt in order to repurchase equity. Their intentions in repurchasing equity are to maximize earnings per share and receive a tax shield through their high amount of debt issuance. 2. Describe the pros and cons of the recapitalization from the
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consider a recapitalization plan in which UST borrows up to $1 billion to repurchase its stocks. The marginal effect of the recapitalization will be a $380 million increase in firm value‚ which is the present value of interest tax shield. Besides the recapitalization benefit‚ management also needs to notice the costs of recapitalization‚ which include higher bankruptcy costs and a potential of lower credit rating. UST has a high and constant dividend payout history since 1912. The recapitalization will
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Because our product is gum with healthy functions‚ in the traditional gum market‚ our key competitor is Wrigley. Wrigley is a recognized leader in confections with a wide range of product offerings including gum‚ mints‚ hard and chewy candies‚ and lollipops. Wrigley is a world-famous brands – including Extra®‚ Orbit®‚ Doublemint®‚ and 5™ chewing gums. With operations in more than 40 countries and distribution in more than 180 countries‚ Wrigley’s brands bring smiles to faces around the globe. On
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