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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
TimeTopic Remarks
9:00-10:30Banks versus Markets: The changing environment for European bankingDiscussion of Deutsche-Dresdner
10:45-12:15Revising bank strategyDiscussion of DBS Bank case
12:15-13:30LunchGroup discussion of Intralinks case
13:30-15:30Banks versus Bytes: Financing the "new economy"Discussion of Intralinks case
16:00-18:00Recapitalizing 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
TimeTopic Remarks
8:30-10Investment banking and equity financingGroup work on Deutsche Telekom IPO
10:30-12:15Pricing, underwriting and distributing new equityDiscussion of Deutsche Telekom IPO

Hybrid financingDiscussion of Bavaria Bank MTN
13:30-16:30Quasi-equity financing: Convertibles and warrantsGroup 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
TimeTopic Remarks
08:30-10:00What drives mergers, divestitures, management buy-outs and other forms of corporate ownership restructuring?Illustration: Kodak-Sterling Drug, Ciba SC-Allied Colloids
10:30-11:30Valuing merger synergiesDiscussion of Feng-Shui Compass; Analysis of Optika-Schirnding case; discussion of NatWest/BOS/RBS
11:30-12:00Bank advisory servicesDiscussion 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:
Excel spreadsheets for Corporate Finance and Valuation may be found at:
A sample Excel spreadsheet for the valuation of a merged company may be found at:


Prof. Giddy's Resources
Global Financial Markets

Giddy's International Financial Management course
Giddy's Global Banking and Capital Markets course
Giddy's Financial Markets and Investments course
Giddy's Debt Instruments and Markets course
Giddy's Introduction to Finance course
Giddy's Corporate Finance course
Asset-Backed Securities
Mergers and Acquisitions
Giddy's short courses and seminars
Resources for Finance Instructors
About Ian Giddy: A short bio
Articles, papers and books by Ian Giddy