Cyanamid Case Essay

991 Words4 Pages
Thank you for speaking to me this morning about the situation at Cyanamid. Our conversation clearly indicates your support of the American Home Products (AHP) takeover bid, hence, I strongly advise the following course of action: a) Assess the source of your motivation or strong feelings about the takeover b) Avoid the media c) Analyze the takeover option relative to other alternatives d) Obtain board members and shareholders perspective e) Have a constructive conversation with the CEO f) Call a special meeting with the board of directors Assess the source of your motivation or strong feelings about the takeover First, you need to evaluate and analyze your personal motivation or strong feelings about the takeover. Are you doing this for a personal agenda or for the shareholders interest? One of the most surprising criticisms I have heard about board members is that they often put self-interest and self preservation ahead of shareholders interest. In this case, it appears that you are supportive of the takeover bid despite the potential of losing your board seat within the newly merged company. Hence, I take it that you are clearly looking out for Cyanamid’s best interests for the long term. Avoid the media Expressing your frustration to the media about the boardroom processes may help vent your feelings in the short term but it could have negative consequences. It will not only jeopardize Cyanamid’s reputation during the current negotiations with AHP, but a board member speaking to the media will typically be seen as a display of betrayal of the company and the board. In my experience, corporate boards of directors typically believe that someone who has gone to the media has no place on the board. You will be subjected to scorn, anger, and ridicule. Additionally, speaking to the media without consensus of other board members will further instill their

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