MERGERS AND ACQUISTIONS

##ANSWER ALL PARTS AND GIVE DETAILED EXPLANATION OF EACH

a)Mergers and acquisitions are usually suggested, in anticipation of economic benefits. Identify the more common claimed sources of benefit, and discuss whether they are realistic. (10 marks)

b) Briefly review the available evidence on the actual benefits and costs of both mergers and acquisitions. Consider shareholders, and other affected parties. (5 Marks)

c) We assume that mergers and takeovers are normally expected to generate a positive economic outcome. Identify the more commonly claimed reasons as to why a positive outcome can be expected. In each case, provide a critical assessment of whether this outcome is likely. (40% of Question) d) Review available evidence on the impact of mergers and takeovers. Consider the benefits and costs to those who are directly affected. Identify the typical winners and losers, and explain why this happens.