It is 1998. You have been hired by CalPERS, an institutional investor with a large ownership stake in Newell. CalPERS is concerned that Newell’s recent aggressive acquisitions (including Rubbermaid and Calphalon) may hurt future performance. (DECISION) You are write a brief position memo outlining your assessment of the potential of the Calphalon acquisition.
Does Newell’s acquisition of Calphalon make economic sense? That is, does the acquisition pass the “better-off” test? Explain your logic.
