Mergers and Acquisitions: Current Issues Book

Acknowledgments     xi
Notes on the Contributors     xiii
Introduction     xxi
Mergers and Acquisitions: A Global View   Karyn L. Neuhauser     1
What Drives Acquisitions? A Market-Manager Rationality Framework   Antonios Antoniou   Huainan Zhao     5
Introduction     5
Hypothesis development     7
Data and descriptive statistics     8
Methodology     10
Empirical results     11
Conclusion     24
Misadventure and the Form of Payment in Corporate Acquisitions   Tyrone M. Carlin   Guy Ford   Nigel Finch     27
Introduction     27
Factors influencing the form of consideration in acquisitions     31
A price too far? The acquisition of Howard Smith Ltd by Wesfarmers Ltd     33
Financial analysis     35
Assessment of the transaction     38
Conclusion     40
An Essay on the History of a Merger: The Case of the National Bank of Canada   Raymond Theoret   Francois-Eric Racicot     42
Introduction     42
The structures of the two merged banks     43
The new merged bank     50
A low P/E ratio for the stock of national bank     53
Conclusion     54
Corporate Diversification: The Costs and Benefits of Synergy   Felipe Balmaceda     56
Introduction     56
Related literature     58
The model     60
The analysis     64
Robustness     67
Conclusion     73
The Influence of M&As on Firm Value: The Turkish Experience   M. Nihat Solakoglu   Mehmet Orhan     83
Introduction     83
Data and methodology     85
Discussion of results     87
Conclusion     93
Price Volatility in Stocks Subject to Tender Offers   Elaine Hutson     96
Introduction     96
Previous research and theoretical background     97
The econometric analysis: market effect and volatility     101
Data and preliminary results     102
Econometric results     106
Trading volumes     110
Conclusion     114
Merger Arbitrage: An Introduction   Greg N. Gregoriou   Francois-Serge Lhabitant     118
Introduction     118
Merger arbitrage: the strategy      119
Key sources of merger arbitrage risk     128
Historical performance     132
Conclusion     136
The Impact of Cross-Border Mergers and Acquisitions on Financial Analysis' Forecasts: Evidence from the Canadian Stock Market   Alain Coen   Aurelie Desfleurs   Claude Francoeur     139
Introduction     139
Conceptual framework     141
Measures of financial analysts' forecast errors and data     142
Empirical results and analysis     145
Conclusion     151
The Economic Analysis of US Antitrust Merger Law   German Coloma     155
Introduction     155
Theoretical literature     156
Statute and case law     160
Empirical studies     163
Conclusion     165
Ethical Issues in Mergers and Acquisitions   Robert W. McGee     168
Introduction     168
Ethical approaches     168
Review of the literature     173
Conclusion     175
The Use of Equity Swaps in Mergers   Paul U. Ali     178
Introduction     178
Equity swaps     179
Hedging of swap exposure      180
"Fear and loathing" in takeover battles     180
Conclusion     185
Banking Performance in Domestic and Cross-Border Acquisitions   Sergio Sanfilippo Azofra   Belen Diaz Diaz   Myriam Garcia Olalla   Carlos Lopez Gutierrez     188
Introduction     188
Cross-border M&As: a literature review     190
Empirical analysis: definition of sample, variables and methodology     192
Results from empirical analysis     199
Conclusions     208
Mergers between European Energy Firms: National Champions and Markets   Francesc Trillas     213
Introduction     213
The issues at stake     214
The behavior of target firms     217
Expanding firms     221
Competition policy and national champions     228
Conclusion     231
A Deal Too Far: The Case of the Killer Acquisition   Tyrone M. Carlin   Nigel Finch   Guy Ford     234
Introduction     234
Overview of the focal company     236
A string of acquisitions     239
Exploring a killer deal     241
Conclusion     244
Trends in Chinese M&A: A Look at Lenovo's Acquisition of IBM PC   Margaret Wang     249
Introduction     249
History of Lenovo     249
Lenovo's acquisition of IBM PC     250
After the merger     253
Conclusion     255
Index     259