You have no items in your shopping cart.

The Merger of Union Bank of Switzerland and Swiss Bank Corporation (B): Post-Merger Experience
Bruner, Robert F.; Chan, Jessica Case F-1422 / Published November 11, 2003 / 20 pages.
Format Price Quantity Select
PDF Download
$3.75
EPUB Download
$3.75
Master Hard Copy
$4.00
Student Hard Copy
$4.00
Copyright Permissions
$2.75

Product Overview

With their announcement on December 8, 1997, of their proposed merger, the CEOs of Union Bank of Switzerland and Swiss Bank Corporation must prepare a plan of integration of the two firms. This case presents the press release of the announcement and relates the reaction of investors and journalists. The case also presents a framework for setting the strategy of post-merger integration and summarizes the integration task before the executives. The tasks for the students include: 1. Assess the public communication of this deal. The public announcement launches the integration effort and sets a tone that can help or hinder the subsequent combination. 2. Survey the integration planning process. The executives of the two firms were committed to having a detailed integration plan in place before the consummation of the deal--this is consistent with current thinking about the desirability of avoiding a slow integration. Thus, the case is an illustration of the kinds of issues that must be resolved quickly. 3. Describe and evaluate the integration strategy of the new firm. The case surveys the process of integration planning between the announcement and consummation dates of the merger and outlines the approaches in the various business units. The student must consider the influence of various strategic issues including the balance of autonomy versus absorption, relatedness, and control versus consultation (these are described in the case.) The (A) case in the series describes the proposed terms of merger and invites students to value the benefits of the deal and assess the strategic motives. The (C) case summarizes the integration effort and the economic results over the five years following the transaction. It is recommended that the instructor distributes the (A) case for advance preparation by students and holds the (B) and (C) cases for discussion after the (A) case. The cases about the UBS-SBC merger were prepared to serve a number of learning objectives: A. Exercise skills of valuation and strategic analysis. The cases assume that students have been exposed to standard concepts in these areas and are ready to apply them. B. Survey the often arduous process by which M&A deals are developed and then implemented. These cases give detailed insight into the risks and difficulties of transaction management. C. Explore the terms of merger and the wide range of choice in transaction design. A key lesson here is that "a deal" consists of much more than price. Students will see that issues regarding form of payment, governance, and social terms are vital aspects of a deal. D. Consider the enormous challenges of post-merger integration. The case reports the integration strategies adopted in various lines of business and thereby affords the opportunity for comparing the motives and effects of different integration strategies.

  • Overview

    With their announcement on December 8, 1997, of their proposed merger, the CEOs of Union Bank of Switzerland and Swiss Bank Corporation must prepare a plan of integration of the two firms. This case presents the press release of the announcement and relates the reaction of investors and journalists. The case also presents a framework for setting the strategy of post-merger integration and summarizes the integration task before the executives. The tasks for the students include: 1. Assess the public communication of this deal. The public announcement launches the integration effort and sets a tone that can help or hinder the subsequent combination. 2. Survey the integration planning process. The executives of the two firms were committed to having a detailed integration plan in place before the consummation of the deal--this is consistent with current thinking about the desirability of avoiding a slow integration. Thus, the case is an illustration of the kinds of issues that must be resolved quickly. 3. Describe and evaluate the integration strategy of the new firm. The case surveys the process of integration planning between the announcement and consummation dates of the merger and outlines the approaches in the various business units. The student must consider the influence of various strategic issues including the balance of autonomy versus absorption, relatedness, and control versus consultation (these are described in the case.) The (A) case in the series describes the proposed terms of merger and invites students to value the benefits of the deal and assess the strategic motives. The (C) case summarizes the integration effort and the economic results over the five years following the transaction. It is recommended that the instructor distributes the (A) case for advance preparation by students and holds the (B) and (C) cases for discussion after the (A) case. The cases about the UBS-SBC merger were prepared to serve a number of learning objectives: A. Exercise skills of valuation and strategic analysis. The cases assume that students have been exposed to standard concepts in these areas and are ready to apply them. B. Survey the often arduous process by which M&A deals are developed and then implemented. These cases give detailed insight into the risks and difficulties of transaction management. C. Explore the terms of merger and the wide range of choice in transaction design. A key lesson here is that "a deal" consists of much more than price. Students will see that issues regarding form of payment, governance, and social terms are vital aspects of a deal. D. Consider the enormous challenges of post-merger integration. The case reports the integration strategies adopted in various lines of business and thereby affords the opportunity for comparing the motives and effects of different integration strategies.

  • Learning Objectives