Capital Corp Merchant Banking

Capital Corp Merchant Banking Story

The reasoning was simple in that Stanley expected to save close to $30 million annually in corporate income taxes by changes its citizenship. On the date of the announcement, the market value increased by $199 million.

The announcement was met with heated opposition from employees, stockholders and local, state and federal authorities. The change required a two thirds approval by its stockholders. Stanley suffered through a controversial vote on the move in May 2002. Due to confusing corporate communiqués to shareholders, a second vote had to be scheduled. In August 2002, Stanley found itself a lightning rod for public debate on the responsibilities of a corporate citizen and the ethics of a tax reduction and patriotism.