Skip to Main Content
HBS Home
  • About
  • Academic Programs
  • Alumni
  • Faculty & Research
  • Baker Library
  • Giving
  • Harvard Business Review
  • Initiatives
  • News
  • Recruit
  • Map / Directions
Faculty & Research
  • Faculty
  • Research
  • Featured Topics
  • Academic Units
  • …→
  • Harvard Business School→
  • Faculty & Research→
Publications
Publications
  • November 2008
  • Supplement
  • HBS Case Collection

NEC Electronics (CW)

By: C. Fritz Foley, Robin Greenwood and James Quinn
  • Format:Multimedia
  • | Pages:1
ShareBar

Abstract

Why do shares in NEC Electronics, a publicly listed subsidiary of Japan conglomerate NEC trade at a discount to their fundamental value? Can Perry Capital, a U.S. hedge fund, restructure this subsidiary and generate significant returns? This case provides students with an opportunity to analyze Perry's decision to invest in NEC Electronics. In doing so, it asks for the reasons that NEC might take actions that destroy value and shift value away from NECE's minority shareholders. The events covered allow for a discussion of how ownership concentration constrains restructuring alternatives, how hedge fund investors might confront controlling shareholders, and how the mis-pricing of agency costs can give rise to ownership structures that allow for minority shareholder expropriation.

Keywords

Business Conglomerates; Business Subsidiaries; Restructuring; Decisions; Investment Return; Investment Funds; Price; Ownership; Agency Theory; Business and Shareholder Relations; Value Creation; Electronics Industry; Japan; United States

Citation

Foley, C. Fritz, Robin Greenwood, and James Quinn. "NEC Electronics (CW)." Harvard Business School Spreadsheet Supplement 209-711, November 2008.
  • Purchase

About The Authors

C. Fritz Foley

Finance
→More Publications

Robin Greenwood

Finance
→More Publications

More from the Authors

    • April 2025
    • Journal of Finance

    The Disappearing Index Effect

    By: Robin Greenwood and Marco Sammon
    • 2024
    • Annual Review of Financial Economics

    Supply and Demand and the Term Structure of Interest Rates

    By: Robin Greenwood, Samuel Hanson and Dimitri Vayanos
    • 2024
    • Faculty Research

    How Do Global Portfolio Investors Hedge Currency Risk?

    By: Robin Greenwood and Alex Cheema-Fox
More from the Authors
  • The Disappearing Index Effect By: Robin Greenwood and Marco Sammon
  • Supply and Demand and the Term Structure of Interest Rates By: Robin Greenwood, Samuel Hanson and Dimitri Vayanos
  • How Do Global Portfolio Investors Hedge Currency Risk? By: Robin Greenwood and Alex Cheema-Fox
ǁ
Campus Map
Harvard Business School
Soldiers Field
Boston, MA 02163
→Map & Directions
→More Contact Information
  • Make a Gift
  • Site Map
  • Jobs
  • Harvard University
  • Trademarks
  • Policies
  • Accessibility
  • Digital Accessibility
Copyright © President & Fellows of Harvard College.