Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Where Do Merger Profits Go

Where Do Merger Profits Go Stockholders make money from takeoversstockholders of the acquired firm, that is. When Kohlberg Kravis Roberts & Co. KKR took RJR Nabisco private for over 24 billion, for example, the RJR stockholders received more than twice what their shares had sold for prior to the bidding battle. That profit margin is typical of contested takeovers, although higher than the premium paid for all acquisitions in the past decade, which have averaged around 40 percent. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Business Strategy Emerald Publishing

Where Do Merger Profits Go

Davidson, Kenneth M.
Journal of Business Strategy , Volume 10 (3): 4 – Mar 1, 1989
Download PDF
4 pages

Loading next page...
 
/lp/emerald-publishing/where-do-merger-profits-go-vtrR06VWs0

References

References for this paper are not available at this time. We will be adding them shortly, thank you for your patience.

Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
0275-6668
DOI
10.1108/eb039310
Publisher site
See Article on Publisher Site

Abstract

Stockholders make money from takeoversstockholders of the acquired firm, that is. When Kohlberg Kravis Roberts & Co. KKR took RJR Nabisco private for over 24 billion, for example, the RJR stockholders received more than twice what their shares had sold for prior to the bidding battle. That profit margin is typical of contested takeovers, although higher than the premium paid for all acquisitions in the past decade, which have averaged around 40 percent.

Journal

Journal of Business Strategy – Emerald Publishing

Published: Mar 1, 1989

There are no references for this article.