Server Vault: "Reliable, Secure, and Wicked Fast"

INTRODUCTION

The first Carrefour store opened on June 3, 1957, in suburban Annecy near a crossroads. The Carrefour group pioneered the concept of a hypermarket a large supermarket and a department store under the same roof. They opened their first hypermarket June 15, 1963 in Paris, France.

Carrefour’s major markets include France, Spain, Greece, Portugal, Brazil, Argentina, Taiwan, Mexico, and Asia. The company operates its stores under 17 banners, including hypermarkets (Carrefour), supermarkets,convenience stores, hard discount stores ,cash-and-carry stores, mini markets and food service stores. Other banners of the company include Puntocash, docks MARKET and an online store.

In August 2002, the French retail giant Carrefour S.A. was considering alternative currencies for raising EUR750 million in the Eurobond market. Carrefour's investment bankers believed that the bonds can be issued at 5.25% in euros, 5.375% in British pounds, 3.625% in Swiss francs, and 5.5% in U.S. dollars.

Despite the high nominal coupon rate and the lack of any material business activity in the United Kingdom, the British-pound issue appears to provide the lowest cost of funds. This case was designed to introduce topics in international finance such as interest-rate parity, currency risk management, and the Eurobond market. Stockholders are tasked with exploring why forward-currency exchange rates vary from spot rates and proposing a Eurobond financing strategy for Carrefour.

It’s goal is to become the biggest one-stop-shopping retail company. And the company’s long term goal is they want to open its new store outside France, on an easy acces place.

The company’s short-term goal are they want to operate about fifteen new stores on three systems that have been operated on its previous stores, that are: joint venture, franchise and wholly own, and tokeep its growth more than 50%.

CENTRAL PROBLEM:

In 2001, total Carrefour borrowings were EUR 13.5 billion, of which EUR...