Why risk diversification benefits and earnings growth are not good justifications for a takeover intended to increase shareholder wealth? (Or if you disagree with this statement - explain your point of view). 

1.  
2. What defensive strategies are available to help target companies resist an unwanted takeover? Which strategy do you might be the most effective in practice and why?
3.  
4. Based on the empirical evidence, who gets the value added from a takeover? What is the most likely explanation of this fact? Explain briefly:
5.  

Answer rating: 100% (QA)

1 Risk diversification benefits and earnings growth may not always be good justifications for a takeover intended to increase shareholder wealth because the success of a takeover in achieving these ob... View the full answer