Business Case Studies & Business Publications

Shorebank and Indecorp (C)

Werhane, Patricia ...

Case

Shorebank and Indecorp (C)

Werhane, Patricia H.; Powell, Elizabeth A.; McMillen, Sheila

E-0122 | Published July 23, 1998 | 7 pages Case

Collection: Darden School of Business

Product Details

The C case (see also the A [E-0120] and B [E-0121] cases) opens with Shorebank's announcement that it will acquire Indecorp. From Shorebank's perspective, the merger affords an opportunity to further its mission by widening the market base that it already serves. Despite Shorebank's excellent lending record, public controversy erupts over the white-owned firm's acquisition of black-owned Indecorp. Public perceptions of the deal vary, but several black-community activists are outspoken in their opposition to the merger.