Measuring shareholder value has become crucial in the current economic environment, especially following the consistent pressure from institutional shareholders on companies to create shareholder value in an adverse economic environment. Maximizing the companys value will make the company less appealing to hostile takeovers. Takeovers are a capital market mechanism designed to control the conflicts of interest between shareholders and managers of the company. In this study, the authors examine the best methods used in measuring shareholder value, and explore the process of shareholder value creation in the years prior and following the creeping takeover of Ivanhoe Mines by Rio Tinto Plc. The study is based on data and ratio analytics from ThomsonONE (Reuters), information that is publicly available through press releases, analyst coverage, and financial news. It also includes an in-depth analysis of the creeping takeover of Ivanhoe Mines by Rio Tinto Plc.
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Toshiaki Kurokawa is an ICES (http://www.standards-education.org/) founder and an independent design thinker, directing Design Thinking Research & Education at his home in Machida, Tokyo. His consultation experience and expertise cover those areas such as design thinking education, science and technology trends and foresight, education about standardization, ICT Deployment including cloud computing and crowdsourcing. Mr. Kurokawa graduated from University of Tokyo in computational mathematics and has been engaged in research and engineering at Toshiba, IBM, SCSK Corporation, and Kanazawa Institute of Technology. He has published 14 books in Japan and has spoken at worldwide events. He has also published numerous papers on education about standardization, ICT and Design Thinking at such journals as Science & Technology Trends - Quarterly Review.
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