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EPO: Electricidade Portuguesa Online (B)
English , Spanish
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Reference: ASN-62-E
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Year: 2013
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Number of pages: 7
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Geographic Setting: Portugal
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Publication Date: May 2, 2016
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Fecha de edición: Mar 13, 2017
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Source: IESE (España)
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Type of Document: Case
Description
Ten months after rejecting an investment fund's offer to become a shareholder in Electricidade Portuguesa Online (EPO), the partners meet with their chief financial officer, Carla Ferreira, to analyze the results of the first three quarters of the year and the forecasts for the following two. Carla must also decide whether to accept the offer of the two partners for her to become a shareholder in the company: they are prepared to offer her 10% of EPO on advantageous terms. The case allows for an exhaustive analysis of Carla's decision, taking into account not only the situation of the company and the market but also the relationship between the partners and the imminent need for funding to ensure that EPO can carry on.
Learning Objective
The case describes in detail the decision that the EPO chief financial officer must make regarding the possibility of becoming a shareholder in the company. This is an explicit decision where there are two alternatives. The debate should focus on the definition of the criteria for analyzing these alternatives, as well as the viability of the business itself. The case study can be used in any program as part of the course Analysis of Business Problems.