Case | HBS Case Collection | June 1997 (Revised February 2012)

The Union Carbide Deal (Abridged)

by Thomas J. DeLong

Abstract

On November 3, 1986, after a three-hour board of directors meeting, Union Carbide decided to accept First Boston's proposal to embark on a $2.5 billion recapitalization program. Jameson and his associates' efforts had paid off. Jameson had reason to be excited: He had changed a weak relationship between First Boston and Union Carbide into one that would generate tens of millions of dollars in revenues for his firm. In the highly competitive world of investment banking, it was a particularly sweet victory, since First Boston had won the business from Union Carbide's traditional banker, Morgan Stanley. A rewritten version of an earlier case for courses in service management.

Keywords: Restructuring; Capital Structure; Investment Banking; Financial Strategy; Partners and Partnerships; Competition; Financial Services Industry;

Citation:

DeLong, Thomas J. "The Union Carbide Deal (Abridged)." Harvard Business School Case 897-201, June 1997. (Revised February 2012.)