Case Study

Aktiva buys Yaco: A case study of market manipulation with options

4 pages
December 2010
Reference: IMD-1-0297

On September 6, 2008, Aktiva Corporation (“Aktiva”) announced that it would make a tender offer to acquire 100% of the shares of Yaco Inc (“Yaco”). The bid price offered was $330 per share of Yaco. Both Aktiva and Yako were medium-size, publicly-traded companies, operating in the services sector.The announcement was made after Aktiva had bought a 24.1 percent stake in the firm in the open market. Additionally, both before and after the announcement, Aktiva bought call options representing an additional 26.12 percent of the equity of Yaco. The options had times to maturity varying between 229 and 558 days, and with exercise prices (“strikes”) ranging between $300 and $390. In three cases, the options were bull spreads (a combined position of a long call and a short call with different strikes). Except for the bull spreads, all options were American.

Learning Objective

Option Markets, Fair Price Statutes, Market Manipulation

Market Manipulation
Generalized Experience
© 2010
Available Languages
Related material
Teaching note
Case clearing houses
IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

The Case Centre

Cranfield University

Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]

Harvard Business School Publishing

60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]

Asia Pacific Case Center

NUCB Business School

1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]


Research Information & Knowledge Hub for additional information on IMD publications

Looking for something specific?
IMD's faculty and research teams publish articles, case studies, books and reports on a wide range of topics