Anheuser Baush
MGT 6066: Corporate RestructuringCase Write-UpCase: HBS Case 9-291-020/ Anheuser-Busch and Campbell Taggart Group Members: Sohaan ShahShitij MalhotraHemant KillampilliSoham NathwaniSiddhant MohantyAns. 1Yes, Anheuser Busch should sue Paul Thayer and his accomplices(“tippees”) for damages to the firm as estimated below.Campbell TaggartVolume in June240,800Volume in July749,300Volume increase508,500Price change in June$1.63Price change in July$3.25Price change during insider trading$1.63Insider volume170,200Average inside trading price $26.95 Selling price$35.25 Profits (money minted by insiders)$1,411,550
Anheuser-BuschBefore insider trading, the Campbell Taggart was @$24.88 After insider trading Campbell Taggart was @$29.63 Price increase due to insider trading$4.75 Anheuser-Busch is paying a premium @20%Assuming monthly increase to be as that of June$1.63 Increase due to Insider Trading$3.12 Premium paid$3.74 Price for 7.5 million shares of Campbell Taggart$28,080,000Price for preferred shares of Campbell Taggart$47,775,000Total estimated loss to Anheuser-Busch (Amount to be sued for)$75,855,000