Oftentimes, managers perceive it as an attractive strategic decision to pursue the acquisition of another company. However,

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Oftentimes, managers perceive it as an attractive strategic decision to pursue the acquisition of another company. However, evidence suggests that stock prices of acquiring companies often drop after the announcement of an acquisition.

a) What are the motives behind mergers and acquisitions? Summarise in your own words.

b) Why do the share prices of acquiring companies often decrease following the announcement of a corporate acquisition? Discuss.

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Contemporary Human Resource Management Text And Cases

ISBN: 9780273757825

4th Edition

Authors: Tom Redman, Adrian Wilkinson

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Posted Date: Apr 15, 2024 09:22 PM

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Oftentimes, managers perceive it as an attractive strategic decision to pursue the acquisition of another company. However,

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Expert Answer:

a Motives behind mergers and acquisitions include 1 Synergy Companies may seek to achieve synergies by combining complementary resources capabilities ... View the full answer

Contemporary Human Resource Management Text And Cases

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