4 Bad Reasons for Mergers (a) Many explanations and justifications are made by acquiring (and sometimes target)

Question:

4 Bad Reasons for Mergers

(a) Many explanations and justifications are made by acquiring (and sometimes target) managers for a merger. Review these justifications and discuss whether they are good or bad for shareholders.

(b) An argument has been made that financial mergers are bad for shareholders because bondholders benefit from the reduction in risk. However, are there situations where a financial merger can be good for shareholders?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Corporate Finance

ISBN: 9781526848093

4th Edition

Authors: David Hillier

Question Posted: