Oftentimes, managers perceive it as an attractive strategic decision to pursue the acquisition of another company. However,
Fantastic news! We've Found the answer you've been seeking!
Question:
Oftentimes, managers perceive it as an attractive strategic decision to pursue the acquisition of another company. However, evidence suggests that stock prices of acquiring companies often drop after the announcement of an acquisition.
a) What are the motives behind mergers and acquisitions? Summarise in your own words.
b) Why do the share prices of acquiring companies often decrease following the announcement of a corporate acquisition? Discuss.
Related Book For
Contemporary Human Resource Management Text And Cases
ISBN: 9780273757825
4th Edition
Authors: Tom Redman, Adrian Wilkinson
Posted Date: