Control premia in emerging markets, premia over what?
Article Abstract:
A study of a number of companies, listed on the Bombay Stock Exchange, which were involved in being taken over found the control or acquisition premia was on average 110% over the share price. The control premia is the payment requested by the seller for the relinquishing of control of a business to the buyer. The premia is the amount over the listed market value. Buyers often face difficulty in establishing the correct control premia for companies in the emerging countries, as the stock markets are a unreliable indicator to the true value of a company.
Publication Name: Acquisitions Monthly
Subject: Business, international
ISSN: 0952-3618
Year: 1999
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The cost of failure
Article Abstract:
Only 11 UK mergers and acquisitions deals failed during the first nine months of 1998, out of a total 1,902 deals which were completed, compared with 22 failed deals in 1996. Failures resulting from investigation by the Monopolies and Mergers Commission have been reduced due to more research being carried out by investment advisers before a deal reaches the investigation stage. A decline in costly hostile mergers or acquisition deals have also helped reduce the market failure rate.
Publication Name: Acquisitions Monthly
Subject: Business, international
ISSN: 0952-3618
Year: 1998
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