Wealth Creation in the World’s Largest Mergers and Acquisitions

1. Front Matter

   Pages i-xii

   PDF

2. Mergers and Acquisitions

   • B. Rajesh Kumar

   Pages 1-15

3. Vodafone Acquisition of Mannesmann

   • B. Rajesh Kumar

   Pages 17-29

4. American Online: Time Warner Merger and Other Restructuring

   • B. Rajesh Kumar

   Pages 31-43

5. Acquisitions by Verizon

   • B. Rajesh Kumar

   Pages 45-56

6. DowDuPont Merger

   • B. Rajesh Kumar

   Pages 57-67

7. Mergers and Acquisitions by Anheuser-Busch InBev

   • B. Rajesh Kumar

   Pages 69-77

8. Merger of Kraft and Heinz Company

   • B. Rajesh Kumar

   Pages 79-84

9. Acquisitions by Pfizer

   • B. Rajesh Kumar

   Pages 85-99

10. ExxonMobil Merger

    • B. Rajesh Kumar

    Pages 101-109

11. Citicorp–Travelers Group Merger

    • B. Rajesh Kumar

    Pages 111-119

12. AT&T–Time Warner Acquisition

    • B. Rajesh Kumar

    Pages 121-129

13. ABN AMRO Acquisition by RFS Holding

    • B. Rajesh Kumar

    Pages 131-135

14. GlaxoSmithKline Merger

    • B. Rajesh Kumar

    Pages 137-145

15. Acquisitions by Royal Dutch Shell

    • B. Rajesh Kumar

    Pages 147-153

16. Bell South Merger with AT&T

    • B. Rajesh Kumar

    Pages 155-161

17. Comcast Acquisition of AT&T Broadband

    • B. Rajesh Kumar

    Pages 163-166

18. Key Mergers of JPMorgan Chase

    • B. Rajesh Kumar

    Pages 167-174

19. Charter Communications Acquisition of Time Warner Cable

    • B. Rajesh Kumar

    Pages 175-181

20. Actavis-Allergan Merger Deal

    • B. Rajesh Kumar

    Pages 183-189

This book highlights research-based case studies in order to analyze the wealth created in the world’s largest mergers and acquisitions (M&A). This book encourages cross fertilization in theory building and applied research by examining the links between M&A and wealth creation. Each chapter covers a specific case and offers a focused clinical examination of the entire lifecycle of M&A for each mega deal, exploring all aspects of the process. The success of M&A are analyzed through two main research approaches: event studies and financial performance analyses. The event studies examine the abnormal returns to the shareholders in the period surrounding the merger announcement. The financial performance studies examine the reported financial results of acquirers before and after the acquisition to see whether financial performance has improved after merger. The relation between method of payment, premium paid and stock returns are examined. The chapters also discuss synergies of the deal-cost and revenue synergies. 

Mergers and acquisitions represent a major force in modern financial and economic environment. Whether in times of boom or bust, M&As have emerged as a compelling strategy for growth. The biggest companies of modern day have all taken form through a series of restructuring activities like multiple mergers. Acquisitions continue to remain as the quickest route companies take to operate in new markets and to add new capabilities and resources. The cases covered in this book highlights high profile M&As and focuses on the wealth creation for shareholders of acquirer and target firms as a financial assessment of the merger’s success. The book should be useful for finance professionals, corporate planners, strategists, and managers.

• Wealth Creation
• Mergers
• Acquisitions
• M&A
• Synergy
• Medium of Exchange
• Post-Merger Integration
• Financial Synergy
• Deal-Cost
• Operating Performance
• household finance

• Institute of Management Technology, Dubai, United Arab Emirates

  B. Rajesh Kumar

​B Rajesh Kumar is a professor of finance at IMT Dubai. He received his Ph.D. from the Indian Institute of Technology, IIT Kharagpur. His research interest are in areas of applied corporate finance, valuation and mergers and acquisition. He has published over 45 empirical research papers in refereed international journals. He has written six books of which three were published by Academic Press Elsevier USA (Strategies of Banks and other Financial Institutions ; Valuation Concepts and theories ; Strategic Financial Management Case Book), one each by Palgrave Macmillan UK (Case studies on Megamergers );McGraw-Hill India (Mergers and Acquisition: Text and Cases) ; ICFAI Books (Strategies of Indian Pharma Industry). 

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