C. Fritz Foley
Harvard Business School; National Bureau of Economic Research (NBER)
Linnea N. Meyer
Harvard Business School - Finance Unit
May 20, 2008
HBS Case No.: 208-108
SUBJECT AREAS: Banking, Capital Budgeting, Restructuring, Mergers & Acquisitions, International Entrepreneurial Finance, Corporate Governance
How do financial policy requirements and benefits of ownership concentration affect the need for and process of corporate restructuring? This case provides students with an opportunity to analyze the restructuring of a Turkish multinational business group by way of a merger. Finansbank AS is a bank headquartered in Turkey with additional operations in Holland, Switzerland, Russia, Romania, and Ukraine. It was founded by Husnu Ozyegin in 1987, and in April 2006, the National Bank of Greece (NBG) offered to buy part of the bank. Students can consider which factors contributed to Finansbank's growth and success. In order to then assess the terms of NBG's offer, they can evaluate given valuations of the bank and analyze why the proposed deal is structured so that Ozyegin retains a stake and buys back the non-Turkish operations. Students can also consider the offer from the perspective of minority shareholders.
JEL Classification: G32, G34, G21, G15
Date posted: September 18, 2008
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