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(Revised from original version)
MW Petroleum Corporation (B)
Amoco Corp. is negotiating to sell a wholly-owned subsidiary, MW Petroleum, to Apache Corp. MW owns large reserves of oil and gas comprising many properties at different stages of engineering, development, and production. The proposed acquisition is a large one for Apache and poses several important financing and valuation problems. This case focuses on evaluation and execution of a creative financing structure that allows the buyer and seller to reallocate oil price risk.
Keywords: Business Subsidiaries;
Mergers and Acquisitions;
Financing and Loans;
Luehrman, Timothy A., Peter Tufano, and Barbara Wall. "MW Petroleum Corporation (B)." Harvard Business School Case 295-045, April 1996. (Revised from original February 1995 version.)