|
Swiss Banking School
Day 1
Global Commercial
Banking, Capital Markets, and Corporate Finance in the New Economy
Day 2
Raising Equity and
Designing Corporate Financing
Day 3
Restructuring Corporate
Ownership
Background
Materials on Corporate Finance
Prof
Giddy's resources and websites | | |
|
Workshop on Global Financial Developments
Prof. Ian Giddy
New York University
Europe's leading financial institutions are
on the verge of a sea change. How can they respond effectively to the new
economy, technological and capital market changes, and imminent corporate
restructuring?
Course Readings:
Schedule and Case Study Assignments
Day 1
Global Commercial Banking, Capital Markets and Corporate Finance
in the New Economy
| Time | Topic | Remarks | | 9:00-10:30 | Banks versus Markets: The changing environment for European banking | Discussion of Deutsche-Dresdner | | 10:45-12:15 | Revising bank strategy | Discussion of DBS Bank case | | 12:15-13:30 | Lunch | Group discussion of Intralinks case | | 13:30-15:30 | Banks versus Bytes: Financing the "new economy" | Discussion of Intralinks case | | 16:00-18:00 | Recapitalizing corporations: How much and what form of equity? | Group work and discussion of Nokia's capital structure and TPI's restructuring |
Case Study: Deutsche Bank's
Strategy (Please read in advance)
Assignment: Where are the key gains from a merger such as Deutsche
bank's acquisition of Dresdner Bank? Draw on any additional resources you
can find to answer this question. Where do Europe's banks rank in the
World's
Most Respected Companies? What's wrong with this picture? (Please read
in advance)
Case Study: A Regional
Strategy for DBS Bank (optional)
Assignment: Use the Client-Arena-Product framework to identify DBS
Bank's strategy and performance. What will it take to succeed?
Case Study: Intralinks
(Please read in advance)
Assignment: In 1999 Intralinks, a fast-growing "dot com" company based
in New York's Silicon Alley, was seeking advice on the next stage of financing
its growth. What do you recommend? For additional insight see the Cache
Flow case study (optional).
Case Study: Nokia
2000 (optional)
Assignment: Read the questions posed by Nokia's CFO, and consider the
way in which they were answered. What would you advise?
Case Study: Thai
Petrochemical Industry (optional)
Assignment: TPI, the heavily indebted Thai company, is under pressure
to recapitalize. How can this be done? What can be learned from the
way Siam
Commercial Bank has approached its refinancing?
Day 2
Raising Equity and Designing Corporate Financing
| Time | Topic | Remarks | | 8:30-10 | Investment banking and equity financing | Group work on Deutsche Telekom IPO | | 10:30-12:15 | Pricing, underwriting and distributing new equity | Discussion of Deutsche Telekom IPO |
| Hybrid financing | Discussion of Bavaria Bank MTN | | 12:15-13:30 | Lunch | | | 13:30-16:30 | Quasi-equity financing: Convertibles and warrants | Group work on Nextel convertible case |
| What kind of debt? What derivatives? | Discussion of Ciba's financing |
Case Study: Deutsche Telekom
case, and questions.
(Please read in advance)
Course participants will work through a case treating the privatization
and initial public offering undertaken by Deutsche Telekom in 1996. Emphasis
will be placed upon the underwriting process and the pricing of an offering
for domestic and international distribution. In what way is a dot-com IPO
different?
Case Study: Nextel Convertible
Bond (Please read in advance)
Assignment: Why did this company use a convertible bond for its financing,
and what was the cost to the company's shareholders? When should
a company issue bonds with stock warrants?
Case Study: Financing Ciba
and Exhibits (optional)
Assignment: What is the recommended maturity, interest contract, and
currency to finance Ciba's future investments?
Day 3
Restructuring Corporate Ownership
| Time | Topic | Remarks | | 08:30-10:00 | What drives mergers, divestitures, management buy-outs and other forms
of corporate ownership restructuring? | Illustration: Kodak-Sterling Drug, Ciba SC-Allied Colloids | | 10:30-11:30 | Valuing merger synergies | Discussion of Feng-Shui Compass; Analysis of Optika-Schirnding case;
discussion of NatWest/BOS/RBS | | 11:30-12:00 | Bank advisory services | Discussion of what it takes to succeed in M&A and other fee-based
financial services |
Case Study: Ciba's
Acquisition of Allied Colloids (Please read in advance)
Assignment: What was the process, purpose and result of Ciba's acquisition
of Allied Colloids?
Case Study: The Acquisition
of Feng-Shui Compass Company (optional)
Assignment: What was the maximum price that PT Fakawi should offer
for Feng-Shui?
Case Study: Optika-Schirnding
(optional)
Assignment: Quantify the synergies and other effects of a merger between
two Austrian optical equipment companies, and assess whether the shareholders
of each bank will be better off, or worse off, after the merger. For a
solution, see this Excel
spreadsheet.
.
Background Materials
Background Materials on Corporate Finance may be found at the
following website:
http://giddy.org/ibmfinance/finmat.htm
Excel spreadsheets for Corporate Finance and Valuation may be
found at:
http://giddy.org/ibmfinance/spreadsheets.htm
A sample Excel spreadsheet for the valuation of a merged company
may be found at:
http://giddy.org/dbs/ipoh.xls
|
giddy.org