Page 10 - CIMA SCS Workbook February 2019 - Day 2 Tasks

CIMA FEBRUARY 2019 – STRATEGIC CASE STUDY

Reference materials – email from Gal Yaluz to Paul Pau

Email

To: Paul Pau, CFO
From: Gal Yaluz, CEO
Subject: Merger proposal from Funfitt

I have received a letter today from the Board of Funfitt, enquiring if Vita would be interested in
entering preliminary talks about merging our two companies. It appears that, having failed in their
attempt to take over Gopher-IT recently, they believe that there are more chances of success in
having a merger proposal accepted.

I must confess that this has come as a real surprise to me. Vita has reached the position it enjoys
today purely through organic growth; it has never been involved in a corporate tie-up such as a
takeover or merger before. I will admit that this is not something that I am experienced in, and
would therefore appreciate your input in the form of a briefing paper.

Firstly, what are the factors that I need to consider in deciding whether to enter a dialogue with
Funfitt? I guess I am asking you to list all the ways in which this could impact our company and my
own position. Please be as comprehensive as you can.

Secondly, if I decide after reading your briefing paper that this proposal is not for Vita, do I need
to mention it to anyone? I am assuming that, as CEO, it is okay for me to reject it without referring
to anybody else?

Many thanks

26 KAPLAN PUBLISHING