CASE I

Siemens wants to restructure its business and wants to set up Siemens IT solution and services division as
a separate limited liability company on 1 st October’ 2010 under the name ‘SIS GMBH’. SIS will remain a
long term IT service provider and preferred IT solution partner for Siemens’ Energy, Industry and
Healthcare Sector and thus continue to profit from the leading industry expertise of Siemens’ business.

The goal is to give Siemens IT business a competitive structure. A revenue target of 4.1 euro billion has
been set for fiscal 2010. SIS is expected to return to annual growth rates at market level starting in 2012
and to achieve profit margin customary in its industry by 2013.

Subsequent to restructuring SIS will continue to be a 100% Siemen’s subsidiary and a preferred partner for
the Siemens’ sectors. Between, 2010-12 SIS will be provided 500 million euro for investment and variety of
options for further strategic development. The successful reorganization of SIS GmbH as a separate unit is
the priority.

CASE III

It's India's second biggest deal in the pharmaceuticals space and one that has put makers of generic drugs
firmly in the spotlight. US-based Abbot has agreed to buy the generics drug business of local pharma
company Piramal Healthcare for $3.72 billion (a whopping Rs. 17000 crores), becoming the country's
biggest drug maker. While the deal certainly put an end to yearlong speculation of whether Piramal
Healthcare was selling out or not, it does raise questions as to what Ajay Piramal was planning.

The cash cow of the company Piramal's domestic formulations was growing at 22 per cent last year. Apart
from the deal, Abbott will pay $400 million as deferred payments for the next four years, valuing the deal
9.5 times the company's actual valuation along with Piramal's 350 brands and trademarks.

Piramal's Baddi unit is also sold out of its 12 manufacturing units.

The deal transfers 5,250 employees to Abbott giving them a readymade presence in India.
However, Piramal Healthcare retains its custom manufacturing over the counter drugs, critical care,
vitamins, diagnostic services and equipment businesses.

Piramal has big plans to utilize these funds in the existing businesses and is exploring newer areas,
including non-pharma as well. Ajay Piramal, chairman of Piramal Healthcare, said, “We will build a good
value to the remaining business.”
CASE III I

Essar is planning to demerge its shipping, logistics and oil fields business into a separate entity, which will
push the port's growth plans independently. The newly-created company will be christened Essar Shipping
while the existing company will be renamed as Essar Ports. Essar Shipping will issue one equity share for
every three equity shares they hold in the existing company. Under the proposed share entitlement ratio,
promoters will continue to hold an 83.7% stake in the new companies.

Essar Shipping has fixed September 30 as the date of demerger, and expects to complete the process in
six months. The port division of Essar is currently the second-largest with a capacity to handle 76 million
tonnes (mt). This includes 46 mt at Vadinar and 30 mt at Hazira and the company intends to expand this
capacity to 158 mt by 2013.

CASE IV

Shareholders of the USX Corporation approved a plan on 6 th May 1991 to separate the company's vast
energy business from its steel operations by issuing new common stock linked to its steel business. The
plan was to give shareholders the option of investing in either energy or steel, and was widely viewed when
it was approved by the company's board in January as a step toward getting out of the steel business.
USX, was formed in 1986 as the holding company for both U.S. Steel and Marathon Oil after US Steel, the
nation's largest steel producer, acquired the Marathon Oil Company for $6 billion in 1982.
The decision ended nearly five years of wrangling with Carl C. Icahn, the largest shareholder, to enhance
the value of USX stock by selling the steel unit. Under the proposal, current USX shareholders will
exchange their common stock for shares in a new energy company called USX-Marathon, which would be
traded on the New York Stock Exchange under the symbol MRO, which was the old symbol for Marathon
Oil. Current holders were also to get one share of newly issued USX-U.S. Steel Group stock for every five
shares of old USX stock. The steel stock would trade under the symbol X, the company's historic symbol
on the New York Stock Exchange. The issuance of two types of stocks was to create “pure plays” in its
primary businesses—steel and oil—and to utilize USX’s steel losses, which could be used to reduce
Marathon’s taxable income.
Marathon shareholders had long complained that Marathon’s stock was selling at a discount to its peers
because of its association with USX. The campaign to separate Marathon from U.S. Steel began in earnest
in early 2000. On April 25, 2001, USX announced its intention to divide U.S. Steel and Marathon Oil into
two separately traded companies. The breakup would give holders of Marathon Oil stock an opportunity to
participate in the ongoing consolidation within the global oil and gas industry. Holders of USX–U.S. Steel
Group common stock would become holders of newly formed Pittsburgh-based United States Steel
Corporation, a return to the original name of the firm formed in 1901. Under the reorganization plan, U.S.
Steel and Marathon would retain the same assets and liabilities already associated with each business.
However, Marathon would assume $900 million in debt from U.S. Steel, leaving the steelmaker with $1.3
billion of debt. This assumption of debt by Marathon is an attempt to make U.S. Steel, which continued to
lose money until 2004, able to stand on its own financially.