Gulf_Oil

Gulf Oil Gulf Oil Case Summary Oct 1, 2003 This article dealt with the Gulf Oil takeover. Standard Oil Co. of California's (Socal) opportunity came virtually overnight. The Gulf Corporation, the nation's fifth largest petroleum company, had been under siege from an investor group seeking to Gain control of the company and sell it piecemeal for a quick profit. After warding off a takeover bid, Gulf's Board of Directors chose to offer the company up for sale. George Keller of Standard Oil Company is deciding whether of not to take it over and how much to bid on the stock. Since there are other competitors also interested in the company, Keller has to make a decision on how much to pay fast. Right now they had a very low ratio which would allow them to bid as high as 79 or 80 since they could easily borrow vast amounts of cash from creditors. This gave them an advantage over ARCO. After acquisition they would be able to handle this high debt to capital ratio in the short run, but would have to be reduced it within the next few years. company, oil, off, keller, debt, since, sell, reserves, ratio, lower, gulf, double, development, bid, takeover, stock, standard, over, order, much, high, few, feel, exploration, capital, assets, although, allow, after, years, within, whether, warding, virtually, very