PetroquÃmica BahÃa Blanca (PBB) epitome and Valuation Pedro Barbosa LL.M Duisenberg School of pay PBB Analysis and Valuation executive Summary Assessing the supplicate worth for a support in an uphill market is practically more(prenominal) than tricky and complex than assessing a similar final cause in a developed market. Dow chemical substance has a serious competitor in the privatization of PBB and should therefore address for its unobjectionable value or higher. At the end of our analytic thinking, 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 play for the Dow Chemical Company to become the leading polyethylene factor in Latin America However, the company faces competition for the assertion 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 incorporating them in the interchange flow projections Calculating an appropriate brush deflection 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.
dapple 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 argon serious about acquiring the company Dow has to bid for more than the value it has assessed t o be fair. If it were not case than Dow woul! d have more leeway to try to negotiate a discount or bid at fair value. endanger 2 shows monetary data from Copesul. We scum bag see that it is a chop-chop increase company with little debt. Furthermore, Perez Compac is a conglomerate which has already been given(p) 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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