Question: European, Japanese, and Australian companies have been active as acquirers of U.S. companies in recent years. This discussion focuses on recent mergers by Australian media giant News Corp. It seems that in the upcoming years, foreign companies will continue to acquire U.S. firms, even as U.S. companies continue to seek attractive acquisitions abroad.
Read the section "International Mergers" from your textbook (p. 737). Respond to the following:
If you had been a shareholder of Dow Jones, what tradeoffs would you have considered when deciding whether to take the $60 per share or the shares in Ruby Newco?
Discuss the differences in merger practices between U.S. companies and companies in other countries. What changes are occurring in international merger activity, particularly in Western Europe and Japan?