1. Value maximisation and agency relationship. Now consider an important corporate event called takeover. According to Investopedia, takeover occurs when one company makes a bid to assume control of or acquire another, often by purchasing a majority stake in the target firm. In the takeover process, the company making the bid is the acquirer while the company it wishes to take control of is called the target. Empirically it is estimated that on average shareholders from target company enjoy an average gain when acquired while the shareholders of the bidder are quite likely going to loose as their average gains from merger are negative. Why it is so? Try to provide several reasons and try to connect it also to the agency relationship.