eCase Collection - abstracts
| HSE_CASE_NR: |
104-041
| status: active
|
|
| Title: |
FORTUM |
|
Authors: |
Nainwal, Sandhya
Seward, James (supervisor)
Gasiorowska, Anna (supervisor)
|
| Material: |
14 pages |
| Publication year: |
2004
Language:
eng
|
| Keywords: |
energy & oil industry; international acquisitions; restructuring; spin-off
|
| Abstract: |
Right from the conception of this company, Fortum’s objective was to be one of the leading
energy companies in Northern Europe. The major focus was on the Nordic region along with
the Baltic Rim. The recent acquisition of Birka energy has enabled Fortum to be the number one
energy company in Finland. In 2003 Fortum was considering another restructuring of its
business. In order to improve the oil refineries in Porvoo Fortum had the option of selling off the
oil business since they were already leveraged at 80%. However, the irony lied in the fact that
Fortum was the result of a merger between the power and oil company. Also, Fortum’s CEO
believed that with separating the two, the company will be worth much more. The CFO was
asked to come up with different options of raising the capital for improvements or to sell off the
oil business. |
|
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