Business Case Studies & Business Publications

Amoco Corporation

Chaplinsky, Susan,...

Case

Amoco Corporation

Chaplinsky, Susan; Lynch, Luann J.; Doherty, Paul

F-1262 | Published March 21, 2000 | 26 pages Case

Collection: Darden School of Business

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This case is one of a pair of cases used in a merger negotiation. It is designed to be used with "British Petroleum, Ltd." (UVA-F-1263). One-half of the class prepares only the British Petroleum (BP) case, and one-half uses this case. BP and Amoco are considering a merger, and are in the process of negotiating a merger agreement. Macroeconomic assumptions, particularly forecasting future oil prices in an uncertain environment, and assumptions about Amoco's ability to reduce exploration and production costs make Amoco's future cash flows difficult to predict.

Students consider strategic issues, valuation issues, and negotiation strategies in their preparation and class discussion.