Faculty Scholarship 1994 - Present

Lion Brewery, Inc.: The Ordeal of Taking a Public Company Private

The Primary subject matter of this case is corporation law, more specifically: the mechanics of corporate governance in an acquistion situation, and the nature of fiduciary obligations owed by Directors and Officers to the corporation and its shareholders. The case also provides vivid merger and acquisition mechanics, dissenting shareholder appraisal rights, advantages of debt and shareholder lawsuits, and advantages and disadvantages of public trading of securities. Secondary issues examined in this case are the economics of the brewed beverage industry, development of an effective strategic response to increased competition among craft beer breweries, and the ethical implications of conflicts of interest among executives, directors, and their corporations. This case has a difficulty level of three or four, and is best utilized in a junior level Business Law/Legal Environment or senior level policy course. In the former instance, the case can be used to supplement the textbook and illustrate how key corporation governance devices are used in business practice. If that use is selected, the case can be read and reviewed as the corporation law materials are covered in class. In the latter instance, the case can be used to integrate important legal and regulatory issues and to explore their impact in developing an effective marketing strategy in the context of an integrated capstone experience. If that use is selected, the case could be taught in a three-hour session and would require six hours of preparation.