Should Nike make a strategic bid for Under Armour in an effort to derail a planned IPO?
Under Armour, the fast growing maker of performance sports apparel, announced its intention to sell stock to the public in an initial public offering. P. Preston Barbieri, a managing director and head of the retail and consumer products group for the boutique investment bank, Shadbush Securities LLC, must assess whether it makes sense to approach Nike, a maker of sports apparel, to discuss making a strategic bid for Under Armour at a valuation compelling enough to convince the board of directors of Under Armour to derail the initial public offering. In this case students are provided with an array of financials and asked to value both Under Armour and Nike.
Case ID: 100311