German Mergers & Acquisitions in the USA: Transaction management and success
In early 2006 BASF AG, Ludwigshafen, acquired, in a prolonged and rather hostile transaction, the U. S. Company Engelhard Corporation in order to strengthen its competitive position in the world’s largest economy. This sizable takeover follows even larger acquisitions by German companies in the United States in the past decade, such as by Daimler-Benz, Deutsche Telekom and Deutsche Bank. Due to increasing pressure from the continuous globalization of international capital and product markets, numerous medi- sized German companies also aimed at entering the United States, as it offers a more dynamic growth potential compared to many rather stagnant European markets. Accordingly, a transaction in the most important consumer market is expected to be particularly beneficial for German acquirers and should elicit positive reactions by investors. But did this actually happen? Despite the high volume of cross-border transactions during the past decade, the number of studies analyzing the success of mergers and acquisitions activity is still limited, especially regarding transatlantic acquisitions involving U. S. target companies. In his thesis, Bernd Wübben provides empirical evidence to fill this gap. Based on capital market data and a survey of executives, his primary objective is to assess the overall success of U. S. acquisitions by German companies and to identify which characteristics of the acquiring and target company and the acquisition structure had a significant impact on the transaction success.
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List of figures
Special considerations for structuring and managing a crossborder
Prior research on the success of crossborder acquisitions and
acquisition experience and transaction success
Correlation between transaction initiator and success 227 Correlation between multiple bidders and transaction success 227 Correlation between mana...
United States 167 6 Summary and outlook 259 Appendix
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acquirer’s acquiring companies acquisition agreement acquisition structuring announcement asset deal Bayer AG BRUNER capital markets CARs are calculated cash flow company’s corporate cross-border acquisitions cross-border transactions cumulative abnormal returns Daimler-Chrysler denote significance Deutsche Bank AG Difference test Event due diligence event study event study sample event window example exchange offer foreign acquirer free cash flow GAAP German acquirers German companies hypothesis impact including mean-difference tests industry KPMG LAJOUX LEWIS & BOCKIUS liabilities M&A activity measures mergers and acquisitions MIDDELMANN and HELMES MSCI NEMAX transactions 1,1 one-tailed Z-test Panel percent period post-closing potential public company public targets REED and LAJOUX relatively requirements RWE AG share deal share price shareholder value Siemens AG significance follow BOEHMER statistical significance follow strategic subsample synergies target shareholders target’s tender offer Tests for statistical transaction success transaction volume typically U.S. companies U.S. target companies U.S. transactions univariate analysis valuation window CAR Z-stat Z-test
Page 313 - ... the list The list of references should appear at the end of the main text (after any appendices, but before tables and legends for figures) It should be double spaced and listed in alphabetical order by author's name References should appear as follows: For monographs Hawawini. G.