1. What motivated Circon’s Chairman and CEO Richard Auhl? Were his financial
incentives strongly aligned with those of the shareholders?
2. What mechanisms did Auhl put in place in response to the telephone call from US
Surgical’s Leon Hirsch?
3. Did Circon’s poison pill represent a strong or weak barrier to a hostile takeover? If a
hostile bidder had triggered the poison pill, what precisely would have happened to Circon’s price and the hostile bidder’s stake in the company?
4. Evaluate the options that are available to the board at the end of the case?
Which option appears to be the most attractive? Explain.
Please see the attachment for the case. There is technically no word limit to these, but please make sure that each question is answered as thoroughly as possible.
There is a strict deadline so please complete in the timeline given.
Thank you so much.