Petrozuata would become a stand-alone entity‚ with the sponsors warranty coming to an end Non-recourse debt = at completion the project debt would also become non-recourse to the sponsors. Sponsor holding most of the equity are also suppliers/customers = Conoco would purchase the first 104‚000 BPCD from Petrozuata upon production‚ Single purpose capital asset = While the project was an integrated facility of production‚ transportation and refining‚ the main purpose was to sell syncrude. Finite life = Petrozuata
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B.A. 142 CASE 2 EXECUTIVE SUMMARY E. I. du Pont de Nemours is an American chemical company that has recently acquired the major oil company of Conoco Inc. and is becoming one of the largest chemical manufacturers in the United States. Its financial conservatism has pushed Du Pont to the forefront of the industry as its profitability soared‚ providing it with the liquidity to readily finance its cash needs. But several competitive conditions posed a challenge to its risk averse financial
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ROI Project: Phase #1 Return on Investment (ROI): An examination of ROI financial analysis and its historical roots with the DuPont Company Return on Investment (ROI): An examination of ROI financial analysis and its historical roots with the DuPont Company Like it or not‚ with the current state of the economy‚ as well as‚ enforced implications of the Affordable Care Act‚ a large number of hospitals and healthcare agencies will close their doors for good this year. Perhaps
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complex‚ but when a company‚ especially a foreign one‚ makes the conscious decision to enter another foreign market is even more complex and tricky. In this case three western oil firms the neophyte Philbro; the legacy Mobil; and‚ the middle weight Conoco all have to determine if and how they want to enter the newly open Russian Oil market. The Russian oil market is characterized as high risk for potentially high rewards. High risks include but are not limited to obsolete and poor infrastructure; murky
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In the mid-nineties‚ Seagram’s core market‚ the spirits and wine business‚ had stalled. At the same time its CEO‚ Edgar Bronfman Jr. (Bronfman) sold their 25% stake in the chemical giant DuPont. This was the payment from when Seagram’s in 1982 sold the oil company Conoco to DuPont. This stake in DuPont‚ by 1995‚ represented about 70% of Seagram’s total earnings. The income from the sale fueled a further diversification of the company‚ but also a strengthening of its core business with purchases
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the companies that came in later or wait for others to discover the risk‚ then they came in to minimize the risk? If they decide to enter early‚ what deal should they make to minimize the risk? Once the deal was structured‚ how could they bind their various partners to the necessary contracts and commitments? The case examines how three companies (Phibro Energy‚ Mobil‚ and Conoco) have evaluated the risks of Russia and formulated a strategy for investment. Phibro Energy: Philo Energy was a recent
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through a legally independent entity financed with non-recourse debt. The decision to finance this deal on a project basis was actually a dual decision regarding both financial and organizational structure. Instead of entering into a joint venture with Conoco‚ PDVSA could have build the project alone and relied on spot market transactions to sell the syncrude. However PDVSA would have needed specialized assets to extract and upgrade the syncrude which would
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(June): 139-77. Miller‚E. M. 1977.Risk‚ uncertaintyand the divergenceof opinion.Journal of Finance 32 (September):1151-68. Oskamp‚S. 1965. Overconfidence case studyjudgments.Journal of Consulting Psyin chology 29 (June):261-65. Ruback‚R. S. 1982.The Conoco takeoverand stockholderreturns.Sloan Management Review 14 (Winter):13-33. Ruback‚R. S. 1983. The Cities Service takeover:A case study. Journal of Finance 38 (May):319-30. Ruback‚ R. S.‚ and Mikkelson‚W. H. 1984. Corporateinvestmentsin common stock
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Forthcoming Journal of Applied Finance‚ Financial Management Association The Exxon-Mobil Merger: An Archetype J. Fred Weston* The Anderson School at UCLA University of California‚ Los Angeles jweston@anderson.ucla.edu February 26‚ 2002 Fred Weston is Professor of Finance Emeritus Recalled‚ the Anderson School at the University of California Los Angeles. Thanks to Matthias Kahl‚ Samuel C. Weaver‚ Juan Siu‚ Brian Johnson‚ and Kelley Coleman for contributions. The paper also benefited from
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Organizational Social Responsiveness from CSR perspective Introduction This paper will first briefly discuss the CSR theory by reviewing its development history. Focus will then be paid on the study of organizational social responsiveness‚ which includes two basic processes‚ namely first monitoring external social demands and expectations and then developing internal social mechanisms (Bartol‚ 2011). To be more precise‚ the author would like to study the social responsiveness from a CSR perspective
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