Can the supercompanies deliver super growth?: What is driving the world's biggest companies to get bigger still through mergers and acquisitions?

Article Abstract:

Mega mergers account for most of 1998's 1.4 trillion pounds sterling worth of mergers and acquisitions throughout the world. Competition authorities are concerned that the new supercompanies will use their power to increase prices and push smaller competitors out of the market. Mergers are being driven by rising competition and deregulation, and the increased risk and cost of major projects. Defence companies are merging for cost benefits, and mega mergers are also occurring in telecommunications. Pharmaceutical mergers are also on the increase.

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Independents' day

Article Abstract:

Rumors of acquisitions can lead to rises in the stock prices of the companies concerned, but takeovers may not be in the interests of a particular company. Investors should assess why recommendations for accept an offer are made, the reasons behind the argument, and the identity of those making the recommendation. Recommendations should be given by directors who are not linked to the bidding company, and advisers should not have links with the bidder.

United Kingdom, Investor relations

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Mergers - the missed opportunity

Article Abstract:

Many mergers are actually unsuccessful, with 57% of firms becoming less profitable and more than half destroying shareholder value, according to Jim McDonnell of consultants AT Kearney. The reasons behind the failure of mergers, and the potential benefits of demerging are examined.

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