Divestiture of Dupont Company

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Running Head: DIVERSTITURE OF DUPONT COMPANY DIVERSTITURE OF DUPONT COMPANY I suggest a divestiture model that will enable Dupont to sell a minority stake in Conaco. A partial sale, in the range of 40 to 50 per cent, will enable Dupont to make upfront payment to reduce its debt load as well as ongoing interests in the company through its remaining stake. Basically, such an arrangement would allow the businesses to act in a more commercial manner, thus increasing the value of Dupont's remaining interest. To realize the economical impact for the company, the divestment has to raise the overall returns made by the company so that the net income or dividends flowing to the company, combined with upfront payments, would ultimately provide more value relative to the status quo. (Andrade et al 2001) Financial perspective of divesting Given the relative stable net income and strong value in the Dupont Company, any divestiture may be attractive to potential private-sector investors. However, because these assets contribute substantial, ongoing and growing revenues to the province, any potential divestiture would need to carefully assess the value of any upfront, one-time gains against loss of future revenues. Overview of the company DuPont) was founded in 1802 and incorporated in 1915, making it one of the oldest existing companies in the United States. It is also one of the world's largest companies and the largest chemical company. In addition, through its Conoco

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