Case | HBS Case Collection | February 2004

Czech Mate: CME and Vladimir Zelezny (A)

by Mihir A. Desai, Alberto Moel and Kathleen Luchs


This case examines how insiders can expropriate value from shareholders in emerging markets when property rights are ill-defined. As such, it provides a platform for considering how institutions and legal rules impact financing patterns and economic outcomes. CME, controlled by the former U.S. Ambassador to Austria, Ronald Lauder, and its Czech partners win the bidding for the first private broadcast frequency with national coverage in the Czech Republic in 1993. After the entity succeeds dramatically, the primary Czech partner wants to sell his share in the operating company. CME must decide whether to buy the stake and at what price.

Keywords: Developing Countries and Economies; Fairness; Financial Institutions; Corporate Governance; Rights; Ownership Stake;


Desai, Mihir A., Alberto Moel, and Kathleen Luchs. "Czech Mate: CME and Vladimir Zelezny (A)." Harvard Business School Case 204-118, February 2004.