All the result of the right issue, TOUTS is well placed to respond to the boom in corporate outsourcing of non-core assets, and every day provides over 5,000 customers with quick and flexible leasing solutions. TOUTS is now listed on Erroneous in Paris – NYSE Erroneous compartment C, and features the SUB 250 Index. Questions: 1 . After analyzing the case, do you think all the companies that can afford, should opt or right issue to improve their financial status? 2.
What do you analyze as the two main advantages of the right issue? Case let 2 In mid-February 1994, the British paper, the Sunday times ran on article that alleged that a 1 billion sterling ($ 750 M) sale of equipment by British companies to Malaysia was secured only after bribes had been paid to Malaysian government officials and after the British overseas development administration (ODD) had agreed to approve a 234 million sterling grant to the Malaysian government for a hydroelectric dam of (according to the Sunday times) dubious economic value.
The clear implication was that UK officials, in their enthusiasm to see British companies win a large defense contract, had yield to 7 MOM Institute of Business Management Examination Paper: Finance Management pressures from “corrupt” Malaysian officials for bribes – both personal and in the form of the 234 million sterling development grants. What happened next took everyone by surprise. The Malaysian into Malaysia and demanded an apology from British Government. Officially the ban applied only to government orders for British goods and services; the private sector was free to busy as it chose.
However, British companies with experience in the region were nervous that the private sector would follow the government’s lead in shunning British products. At stake was as much as 4 billion sterling in British exports and construction activities in Malaysia and a presence in one of the world’s fastest growing developing economies (Malaysia’s economic growth has averaged 8% per annum since 1989). In announcing the ban, Malaysia’s Prime Minister, Dry Mathis Mohammad, noted that the British media portrays Malaysian as corrupt because ” They are not British and not white”…
And “we believe the foreign media must learn the fact that developing countries, including a country led by brown Moslem, have the ability to manage their own affairs successfully’. The British government responded by stating, it could not tell the British press what and what not to publish, to which Dry Mathis replied there would be “no contracts for British press freedom to tell lies”. At the same time, the British government came under attack from members of parliament in Britain, who suspected the government acted unethically and approved the ODD hydroelectric grant to help British companies win orders in Malaysia.
Questions: 1. If you are the CEO off British company that now faces the loss of a lucrative contract in Malaysia because of the dispute. What action should you take? 2. How do you think British government should respond to the Malaysian action?
