Acquiring firms stockholders
Problem:
Many corporate acquisitions result in losses to the acquiring firms' stockholders. Why do firms purchase other corporations? Are they simply paying too much for the acquired corporation? A co-worker asks your opinion.
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During the early 1990s there was a noticeable increase in mergers and acquisitions between firms in different countries (termed cross-border acquisitions).
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Many corporate acquisitions result in losses to the acquiring firms' stockholders. Why do firms purchase other corporations?
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