Report on Exchanges - INSEAD CALT

With regard to my opinion on the case, I would recommend the Bauer offer. It solves the immediateneeds of the company, which is cash flow. It provides for the current budgeted costs plusopportunities to grow with the additional 4 million each year. It also provides for continuity/stabilitywith the 3 year offer.I like Bauer's approach. They don't want to be in the business of running a racing team. They want aplace they can bring and entertain their exclusive clients. This should give Eagle more freedom tomanage their business. The risk with Sir Ralph is that he would want to be involved and have somesay as to how the business is run.All of the discussion about Bauer's possible publicity problems are speculation. In order to continueoperations Eagle needs funds. Bauer's offer best meets the needs of the business.I look forward to further discussions.Regards,Rich…Bernard joins the debate and shares his analysis of both options and to look for additionalsponsors to bridge the budget gap resulting from the Goodbridge offer….De : bernard.haine@ores.net [mailto:bernard.haine@ores.net]Envoyé : samedi 15 juin 2013 17:44Hello everyone, Sorry for being late in joining the discussion.My name is Bernard Haine and I am the asset manager of ORES [gas & electricity distribution].My 2T+1L : I am a keen gardener, I was born in Belgium and I like formula 1 racing.With regard to my opinion on the case:1) Goodbridgea. Pro’si. knowledge of car racingii. accepting other sponsorsb. con’si. well below budgetc. Risksi. Mingling into the day to day management of Eagled. Opportunitiesi. Possibility of getting a better deal through further discussions?2) Bauera. pro’si. Well above budgetii. 3 years stabilityiii. Hands off approach likely as he has no real knowledge in car racingb. con’si. Eagle’s eggs in one basketii. Mismatch between Bauer’s expectations (entertainment) and Eagle’s ones (racing..)c. Risksi. Negative publicityii. Too nice to be true?d. Opportunitiesi. Further growthAAA/INSEAD/062013 - 55