A trienaly merger is a merger whose terms are spproved by the menagements of both componies, while a hostile merger is a merger in which the torget firmis management resists acquisition. A(0) merger is designed to moke o company less vuinerable to a takoover. A firms involved will not be operated as a single unit and from which no operating economies are expected. An firms involved are integrated in hope of achleving synergistic benefits. The recent merger activity hos raised two questions about mergers. Do mergers create value? And, if they di 1. how do the perties ahare the value? Most researchers agree that takeovers increase the wealth of the thareholders of target firms; otherwise, thay wa. to the otfer However, there is a debate as to whether mergers benefit the acquining firm's shareholders. On balance, the evidence from merger research indicates that mergers do croate value but that ahareholders of target fimms reap virtually alf the benefits. A friendly merger is a merger whose terms are epproved by the managements of both compenles, while a hostile merger is a merger in which the target firm's management reaists acquisition. A(0) merger is designed to make a compsny less vulnerable to a takeover A frms involved will not be operated as a single unit and from which no operating wconomies are expected. An firms involved are integratod in hope of schleving synergistic benefits. The recent merget activity has roibed two questions about mergers. Do mergers create value? And, if they do create value I partes sbare the value? Mest researchars agree thist takepvers increpge the wealth of the shareholders of target firms: otherwise, they would not agree to the offer. Howevec, thara is a debate as to whether mergers beneft the acquiring firmis shareholders. On balance, the evidence from roergec research indicates that mergers do create value but that shareholders of target firms raep virtuelly all the benefits