A five page paper which looks at the takeover bid for Gulf Oil by Mesa in 1984 and the ways in which the attack was handled, in terms of the strategies employed by both Mesa and Gulf, and the possible reasons why Chevron’s bid was ultimately accepted in preference to that of Boone Pickens and Mesa.
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Name of Research Paper File: JL5_JLgulfoil.doc
Unformatted Sample Text from the Research Paper:
which Gulf was the sixth largest American oil company; Gulf had suffered an oil reserve crisis in the previous year but had recovered, and was in the position of being
able to replace the greater part of its reserves by the end of the year. There are, therefore, various aspects of the companys immediate past performance and position within the
industry as a whole which may be relevant to the way it attracted hostile takeover bids. The student should look, for instance, at details of
Gulfs management structure at this time, particularly in view of the comparative weakness and bureaucracy of management, which would render the company suitable for a takeover. The student could consider
if there are any other salient factors which would make Gulf open to attack; for example, what would be the sources of value which bidders would expect to gain from
acquiring the company? The way in which Gulf manages its resources is also relevant, and it would therefore be necessary to look at the level of revenue which Gulf is
able to accrue through the programs which were in operation at the time preceding the takeover bids. In order to assess Gulfs performance, the student
should also look closely at the way in which Gulfs exploration and development programs are structured. For instance, what is the relationship between Gulfs outlay on these types of initiatives,
and the revenue which is generated from them? The student could look at the discrepancies in income which might arise as a result of an imbalance in the level
of gains produced by these exploration programs. It would be necessary to establish what the estimated exploration cost would be per