Page 9 - CIMA SCS Workbook August 2018 - Day 2 Tasks

STRATEGIC MANAGEMENT (E3) - PRACTICE TASKS

EXERCISE 2

UPDATE
You receive the following email from Den Rice, Chief Finance Officer at FNG:

TRIGGER

Email

To: Senior Manager
From: Den Rice, Chief Finance Officer
Subject: DST Group

I am forwarding an email to you that I have received from Alan Finch.

The contents are self-explanatory, and you will see that Alan has asked to meet with me early
tomorrow morning to go over the proposal. I am involved in a number of meetings this afternoon,
and would therefore like your help to prepare for tomorrow’s discussion.

Firstly, could you please evaluate the proposal to buy the entire share capital of DST Group for
$1? I would like you to bear Alan’s comments in his email in mind at all times.

Secondly, do you think that there might be an alternative way to achieving a similar outcome
which is more advantageous for FNG than buying DST outright? If so, could you please provide a
reasoned argument for your proposal?

I would like your ideas before the end of the day so that I can prepare this evening for my meeting
with Alan.

Many thanks

TASK

Prepare an email in response to Den Rice’s requests (Time allowed: 60 minutes)

(Refer to the reference materials overleaf)

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