Case Study in Finance for AGL Energy Ltd- myassignmenthelp.com

Question: Discuss about theCase Study in Finance for AGL Energy Ltd. Answer: Introduction For any sale contract there must be willingness to buy and willingness to sell. The following is a negotiation of the sale of a nuclear power plant from CS energy to AGL energy Ltd. . This is a report on the negotiation process and the outcome from the whole process. To start with, the CS Energy ltd introduced some requirements which they considered non negotiable for the sale of the nuclear power plant. Some of the requirements are absurd to say the least .The following are the requirements introduced by CS Energy Ltd which they considered as non negotiable. My team shall be acting as a representative of AGL energy Ltd Background AGL energy ltd wants to buy a nuclesr power plant at $1.6 billion. The problem is that CS energy had already placed this price tag even before AGL energy got the opportunity to value the plant(National Restaurant Association., 2013) .The company demands to be represented on the AGL energy ltd board of directors so that they can monitor any decision making relating the company (Cassedy, 2004).There are some non negotiable conditions that the seller wants to be done for example,CS requires veto or final approval right on any contractual supply of electricity, any uranium related decisions made by the AGL energy Ltd and also to have a say on any board modification (Northington and Gerard, 2011). The last non negotiable requirement introduced by the company is that the nuclear power plant to be located near Mount Isa (which is the approved site) for security reasons. During the meeting with representatives of CS ltd there were some requirements that the company wanted to be fulfilled before selling the nuclear power plant to AGL Ltd. ). All the non negotiable requirements brought on the table by CS ltd are too much for a company that is genuinely interested in selling the nuclear power plant (Harding and Harding, 2001). References Cassedy, P. (2004).Finance. San Diego, Calif.: Lucent Books. Harding, M. and Harding, M. (2001).Purchasing. New York: Barron's Educational Series. National Restaurant Association. (2013).Purchasing. Upper Saddle River: Pearson Education (US). Northington, S. and Gerard, G. (2011).Finance. New York: Ferguson's.