search query: @author Sudarsanam, S. / total: 9
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| Author: | Sudarsanam, S. Mahate, A. A. |
| Title: | Are friendly acquisitions too bad for shareholders and managers? Long-term value creation and top management turnover in hostile and friendly acquires |
| Journal: | British Journal of Management
2006 : MAR, VOL. 17: special issue, p. S7 S30 |
| Index terms: | mergers managers shareholders bidding United Kingdom |
| Freeterms: | performance |
| Language: | eng |
| Abstract: | It is commonly acknowledged how most acquisitions do not create value successfully. In the debates these failures are usually identified with hostile acquisitions, and friendly acquisitions receive friendly press. The authors consider the relative performance of friendly and hostile acquisitions empirically. The long-term shareholder wealth performance of four different types of acquires (friendly bidder, hostile bidder, white knight, and hostile bidder facing a white knight/hostile bidder) is examined. Data is gathered among acquisitions of UK target companies, and the estimations of post-acquisition benefits for acquirer shareholders show how hostile acquirers deliver more value than friendly acquirers. In addition, the friendly acquirers who have high stock market ratings destroy more value than hostile acquirers, and top managers in friendly acquirers experienced greater job losses than in hostile acquirers. The evidence of the study provides support for the opposition of takeover regulatory rules, which could prevent hostile takeovers. |
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