Czech Mate: Cme and Vladimir Zelezny (a - E)

Posted: 10 Nov 2005

See all articles by Mihir A. Desai

Mihir A. Desai

Harvard Business School - Finance Unit; National Bureau of Economic Research (NBER)

Kathleen S. Luchs

Harvard Business School

Alberto Moel

Monitor Corporate Finance, Monitor Group

Date Written: February 10, 2004

Abstract

SUBJECT AREAS: International finance, Joint Ventures, Negotiations, Political risk, Shareholders relations

CASE SETTINGS: Czech Republic; Broadcasting industry; $170 million revenues; 1997

This case examines how insiders can expropriate value from shareholders in emerging markets when property rights are ill-defined. As such, it provides a platform for considering how institutions and legal rules impact financing patterns and economic outcomes. CME, controlled by the former U.S. Ambassador to Austria, Ronald Lauder, and its Czech partners win the bidding for the first private broadcast frequency with national coverage in the Czech Republic in 1993. After the entity succeeds dramatically, the primary Czech partner wants to sell his share in the operating company. CME must decide whether to buy the stake and at what price.

Note: Teaching Note Available.

Suggested Citation

Desai, Mihir A. and Luchs, Kathleen S. and Moel, Alberto, Czech Mate: Cme and Vladimir Zelezny (a - E) (February 10, 2004). HBS Publishing Case No.: 9-204-118, 9-204-119, 9-204-120, 9-204-121, 9-204-122, 9-204-129, 9-205-069; Teaching Note No.: 5-205-026. Available at SSRN: https://ssrn.com/abstract=845570

Mihir A. Desai (Contact Author)

Harvard Business School - Finance Unit ( email )

Boston, MA 02163
United States
617-495-6693 (Phone)
617-496-6592 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Kathleen S. Luchs

Harvard Business School ( email )

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States

Alberto Moel

Monitor Corporate Finance, Monitor Group ( email )

Two Canal Park
Cambridge, MA 02141
United States

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