Find a recent diversifying merger and answer the following questions:

1. What is the rationale behind the merger?

2. Do you think the merger created or destroyed shareholders value? Why?

3. What is the reaction in the stock market in the short run? How does it relate to its

industry comparable? Do you think investors reaction are reasonable?

4. As an institutional investor holding the firms stock, are you going to continue holding the stock in the long run? Why?