The ITC Classic Story

 
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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Case Details:

Price:

Case Code : FINC005 For delivery in electronic format: Rs. 200;
For delivery through courier (within India): Rs. 200 + Rs. 25 for Shipping & Handling Charges

Themes

Finance : Merger and acquisition takeover
Case Length : 6 Pages
Period : 1991 - 1996
Pub. Date : 2002
Teaching Note : Available
Organization : ITC Classic, ICICI
Industry : Financial Services
Countries : India

Abstract:

The case 'The ITC Classic Story' gives a detailed insight into the failure of the erstwhile financial services major ITC Classic. The case explores in detail the events, which led to Classic's downfall and its subsequent merger with ICICI. The case also examines ICICI's motives behind its decision to merge with Classic and the benefits of the merger for both the parties involved. The case is so structured as to induce students to think about the reasons behind the failure of ITC Classic, a company that had been doing rather well. The students should essentially be able to understand how ITC's poor handling of Classic, the cross-holdings and poor fund management led to its downfall. The tutor can also use the case discussion to explain the advantages ICICI hoped to get by merging with a troubled company.

Issues:

» Functioning of NBFCs, investing in secondary markets, cross holdings

Contents:

  Page No.
Troubled Times 1
Classic: The ITC Fostered Baby 2
The Classic Post-Mortem 2
The Merger 3
The Merger Post-Mortem 4

Keywords:

The ITC Classic Story, financial services, ITC Classic, Classic's, downfall, merger, ICICI, merge, Classic, benefits, parties, students, failure, ITC Classic, ITC's poor handling, Classic, cross-holdings ,fund management, downfall, ICICI, merging

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