Question: 1) How can an acquisition create value for the combined entitys shareholders but not for the acquirers shareholders? 2) What are the pros and cons

1) How can an acquisition create value for the combined entitys shareholders but not for the acquirers shareholders?

2) What are the pros and cons of measuring the success or failure of acquisition by immediate stock price reactions to its announcement? Who is this approach most likely to provide insights?

3) Describe the circumstance under which the acquirer is better off paying in stock rather than ash. What are the implications for the acquirers shareholders paying in stock?

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