Master thesis mergers and acquisitions

Generally hostile offers result in higher premiums than friendly takeovers, multiple bidders increase the price and cash-for-stock deals offer higher prices than stock-for-stock deals as the bidder has to compensate taxable cash-for-stock deals with a higher price.

Value creation through mergers and acquisitions

As a result of globalization and technology technology is portable and can be transferred to other countries easily more and more international takeovers take place. These offers can either be conditional bidder requires a minimum amount of shares or unconditional and restricted bidder says a maximum amount of shares he is willing to buy or unrestricted. As these kinds of mergers could result in a loss of competition, governmental antitrust regulations have to be considered. Then I will calculate the abnormal returns and will end with other important issues concerning this acquisition. In telecom sector, mergers and acquisition has been increasing to a great extent. Mergers and acquisitions in telecommunication industry can be driven by the development of new technology. Another important point is antitrust policy. It is the fifth-largest entertainment deal of the past 10 years and the second-largest acquisition announced so far this year. It has remained stagnant under the government monopoly for many decades. In addition, as Healy, Palepu and Ruback found out, also some accounting variables improved after mergers, like for instance operating cash flows. WTO, EU and deregulations e.

As a result of globalization and technology technology is portable and can be transferred to other countries easily more and more international takeovers take place. At the beginning of the 20th century, in the first movement, mainly horizontal mergers occurred, as a result of the completion of the American market i.

Thus, it is very important to study the mergers and acquisition in this sector.

mergers and acquisitions pdf

Introduction 1. Horizontal mergers occur between companies in the same business activity, in order to reach synergies and economies of scale and scope. In chapter 2, I will give a summary of the most important aspects of the course.

In the recent past, mergers and acquisition activity has been increasingly observed in the telecom industry of India. This for instance can include supermajority requirements e.

Some of the activities proved successful while others fail. Mergers tend to happen in waves. Firstly, I will give a short introduction of the two companies involved.

Vertical mergers occur between companies in different stages of production, like for example the acquisition of a supplier. An interesting point is that foreign bidders pay higher premiums than domestic bidders and are therefore advantageous for the shareholders of the target company.

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Mergers & Acquisitions