Mergers and Acquisitions Current Issues

This collection of exclusive articles presents the latest research in the area of mergers and acquisitions. It presents what drives corporate performance under different economic conditions, both in the US and across the globe, and examines the role of mergers and acquisitions in maintaining the efficiency of world markets.

GREG N. GREGORIOU is Professor of Finance in the School of Business and Economics, State University of New York (Plattsburgh), USA. He obtained his joint Ph.D. in Finance from the University of Quebec at Montreal which pools the resources of Montreal's three major universities (McGill University, Concordia University and Hautes-Etudes Commerciales). He is an editorial board member and hedge fund editor for the Journal of Derivatives and Hedge Funds, the Journal of Wealth Management and the Journal of Risk Management in Financial Institutions. He has written over fifty articles on hedge funds and managed futures in various peer-reviewed publications, including the Journal of Portfolio Management, the European Journal of Operational Research, Annals of Operations Research, and the Journal of Futures Markets. He has co-authored one book with Professor Joe Zhu and edited nineteen books.

KARYN NEUHAUSER is Assistant Professor of Finance in the School of Business and Economics, State University of New York (Plattsburgh), USA. She earned her doctorate in Finance from Louisiana State University and has published articles in the Journal of Real Estate Finance and Economics and the Journal of Financial Research. She recently edited a special issue of the International Journal of Managerial Finance. She is actively involved in the Financial Management Association, the Eastern Finance Association, and the South-western Finance Association and has served as an ad hoc reviewer for the Quarterly Review of Economics and Finance and the Institute for Global Management Research at George Washington University. Her research focuses on mergers and acquisitions, corporate control and governance, securities issuance, and dividend policy. Her work has been presented at numerous national and regional conferences.

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

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