Talk:Mergers and acquisitions

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Contents 1 the biggest merger 2 Great Merger Movement 3 OH MY - Financing M&A 4 Agree - the text isn't fair to the subject 5 Marketplace 6 M&A Resource 7 no need of acquisitions 8 Clean Up Required 8.1 M&A Financing 8.2 Further cleanup 9 Possible POV 10 Categories? 11 Citations 12 The Great Merger Movement 13 takeover premium 14 offer 15 Deleted ABN Amro / Barclays Deal 16 Removed reference to International corporate finance group 17 Lost asterisk 18 Collapsed Merger and Acquisition Bids

[edit] the biggest merger

Arcelor-Mittal padgh singh

Isn't that the World's biggest merger ever. How come that isn't mentioned here ?

151.200.35.176 16:15, 9 July 2006 (UTC)

In one table, i saw that by 1999, the biggest one occured in 1999, Pfizer bought Warner-Lambert with offer price $82.3996 billion. However, in 1999, there was a bigger one: MCI worldcom bought sprint for $129billion. Jackzhp 22:43, 24 April 2007 (UTC)

[edit] Great Merger Movement

There is data included: - 1900: value of firms 20% of GDP - 1990: value 3% - 1998-2000: around 10-11% Comments: As far as I know there are no "purchasing" prices available for the year 1900, so all must be based on equity value. That would underestimate the % of GDP!

[edit] OH MY - Financing M&A

So much of this stuff is just plain wrong, I don't know where to begin. The generalizations are very simplistic and are often correct in only specialized settings. Until I or someone else has time to edit, caveat lector. 1Winston 19:24, 28 July 2005 (UTC)

I have tried to rearrange this into something closer to the truth, and so that it is more logical, but there might still be more to do here. The terminology may also be UK-focused, for which I make no attempt to apologise. :) Arthur Markham 18:48, 22 October 2006 (UTC)

[edit] Agree - the text isn't fair to the subject

I would like to see text on the thinking behind why companies do this, references to famous "cases", references to important literature in the subject.

Opps, there seems there have been a lot of activities here since I last read it. [1]

Any information/study done on social and psychological implications of people laid off by meergers or similar studies?

[edit] Marketplace

There are several marketplaces for M&A transactions. There is one major one that escapes my recollection. The one I can remember is MergerNetwork.com.

[edit] M&A Resource

Where would one find the latest trends / strategies on

[edit] no need of acquisitions

I would like to know some cases where acquisition as a strategy for growth is not feasible. can i get a response at baid_dpk@hotmail.com

[edit] Clean Up Required

There are several mistakes in the already existing article, ex. ChevronTexaco was created in 2001. And there are many mergers left out that need to be recognized, ex. ConocoPhillips, One of the largest companies in the world and its excluded. The numbers are also questionable on the merger values. Gunis del 06:07, 16 February 2007 (UTC)

[edit] M&A Financing

Can anyone support the statement that cash offers are usually mergers because "shareholders of the target company are removed from the picture"? - This doesn't make sense to me.

• to the best of my knowlege the name of the transaction (merger vs acquisition) has nothing to do with the method of financing. Some view acquisition is a special case of merger - one where a controlling interest is obtained -- see http://www.investorwords.com: merger vs. acquisition. In other cases "acquisition" simply refers to act of gaining some sort of possession (not necessarily a controlling interest) and merger is the result of that acquisition. The term M&A comes from that definition. Firms involved in the process of acquiring (the acquisition) also assist in the definition of the legal and organizational structure of the end product (the merger).

• shareholders are always involved, directly or indirectly. Increases in corporate ownership are always obtained by buying stock, even if it is paid for in cash. The only sometimes exception are LLCs which can function like a cross between a partnership and a corporation. So the only way control can be obtained without purchase of stock on the open market is via a release of treasury shares. However, any significant release that would affect corporate control must be done with board approval. Major shareholders usually have the right to hire and fire a certain number of board positions. In addition, some companies also have covenents that require any action significantly affecting ownership be brought to a shareholder vote.

I'd like to edit the M&A financing section - does anyone object? Egfrank 06:26, 23 March 2007 (UTC)

[edit] Further cleanup

I propose major edits to the following sections:

• Major mergers and acquisitions in the 1990s: Create a chart of the Top 10 M&A in the 1990s in the same format as the 2000-2007 section. Delete the remainder of the list. If we seek to include every M&A in this time period, these lists could easily go on for several pages. Leaving only the Top 10 M&A would give ample examples, as well as ensure that we meet the qualification of "Major mergers and acquisitions". Listing only the Top 10 would also result in a much cleaner, more readable article.
• Major mergers & acquisitions 2000-2007: Change name to "Major mergers and acquisitions from 2000 to present". Leave the list of the Top 10 M&A and delete the rest of this section, for all the same reasons as above.
• M&A Advisors: Delete this section entirely or move it to its own article. These charts are incomplete, but could easily be completed and turned into an article on M&A Advisors. Mergers and acquisitions would be better served by a paragraph or two on the roles of M&A Advisors and perhaps examples of major companies in the field. The current level of detail is not essential to describing the large field of mergers and acquisitions.
  
  

I will probably proceed with these changes within two weeks, depending on any feedback.
--JKeene 07:16, 16 June 2007 (UTC)

Done.
--JKeene 02:11, 3 July 2007 (UTC)

[edit] Possible POV

In reading through the list of reasons for a merger or acquisition, I noted that manager hubris was mentioned as a bad reason, but managerial expertise was not mentioned as a good reason. Sometimes a buyer's belief that they can manage company X better than the company's current management team is justified. Egfrank 17:50, 22 March 2007 (UTC)

[edit] Categories?

Are these categories correct?

• Category:Monopoly (economics)
• Category:political_economy

They seem like a strange set to me. RJFJR 16:29, 19 April 2007 (UTC)

[edit] Citations

There is a reference to King, et al., 2004 (my bold). I think this should be clarified and added to the references section. RJFJR 16:36, 19 April 2007 (UTC)

[edit] The Great Merger Movement

Can we put this more in context? I don't find an article on this so is it a well known term for the period/activity? Was this restricted to a particular political/economic region? RJFJR 20:49, 21 April 2007 (UTC)

[edit] takeover premium

It was said that the takeover premiums are generally range from 50% to 100% of the target firm's share price before the acquisition. Can someone put a distribution here? or a link? thanks. Jackzhp 22:31, 24 April 2007 (UTC)

[edit] offer

• conditional tender offer
• unconditional offer, any or all offer
• two-tiered offer, the first tier offer (usually cash) is the initial tender offer, the 2nd tier offer (usually securities) involves a followup merger.

Jackzhp 22:24, 27 April 2007 (UTC)

[edit] Deleted ABN Amro / Barclays Deal

Barclays purchased ABN-AMRO. Information in M&A section was incorrect. The deal never went through. Removed the information. RBS led consortium is now pushing for talks with ABN for a bigger deal. —Preceding unsigned comment added by EccentricallyMad (talk • contribs) 08:36, 17 September 2007 (UTC)

[edit] Removed reference to International corporate finance group

This looked like spam to me. http://en.wikipedia.org/w/index.php?title=Mergers_and_acquisitions&diff=150198946&oldid=150195692 13:48, 1 February 2008 (UTC)

[edit] Lost asterisk

Under the acquisitions of the 2000s, there's a lost asterisk beside "25 Billion" -- could whoever added that section make a note of what that means, or if nothing, delete it? Thanks. --Jophus00 (talk) 22:05, 25 March 2008 (UTC)

[edit] Collapsed Merger and Acquisition Bids

This articled doesnt mention that there have been several major bids for mergers which collapsed.like Microsoft- yahoo supposed merger collapsed and the ALCOA acquision bid of ALCAN in 2007 was withdrawed which later(ALCAN)merged with RIO TINTO.United Rentals supposed merger collapsed with cerebrus affecting United Rentals severly.Scrapping of American Home Products deal with Monsanto co. was a setback to pharmaceutical industry.Jain puneet (talk) 13:46, 16 May 2008 (UTC)