How much-hated takeover defences can unlock hidden value
Article Abstract:
There is growing evidence that anti-takeover measures can be beneficial to corporate value. This assertion comes as a response to a long and commonly-held belief that takeover defenses detract from shareholder value. Theoretical and empirical findings show how specific types of corporate defensive maneuvers such as golden parachutes and poison pill recapitalizations can enhance corporate value. Nine reasons citing the positive effects of anti-takeover measures are discussed. These include the defensive actions' minimization of inherent shareholder-management conflict during struggles for control, the improvement of managers' bargaining power, and the stalling of initial raiders to allow other prospective bidders to take part in the bidding and encourage higher offer prices. Specific preoffer and postoffer defenses are discussed in terms of their influence on corporate value.
Publication Name: Multinational Business
Subject: Business, international
ISSN: 0300-3922
Year: 1992
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How to manage post-acquisition integration
Article Abstract:
About 50% of 330 merger transactions surveyed failed to achieve the anticipated benefits three years after the deal was completed, according to a survey of the outcome of mergers in some European countries by AMR and ICME. The integration process has produced many problems for companies of all sizes in spite of heavy investments and strategic planning. Management who have previously been involved in merger and acquisition activity are more likely to have learnt from experience and will implement a successful post-acquisition integration plan.
Publication Name: Mergers & Acquisitions International
Subject: Business, international
ISSN: 1066-3525
Year: 1995
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