Cross-border merger and acquisition activ-
ity (model), 8–9, 45–50
cross-industries and, 49–50
predictions of, 45
empirical analysis of, 50–64
methodology in, 54–57
equilibrium in
with cross-border mergers, 48–49
without cross-border mergers, 46–48
extension in, 50
industry analysis in, 58, 59t
predictions of, 43, 45, 54, 64, 65
proposition 1 in, 48
proposition 2 in, 48–49
illustration of, 65, 65t
prediction of, 48, 62
testing of, 57, 58, 62, 63t, 64
proposition 3 in, 49
illustration of, 66, 66t
prediction of, 49–50
testing of, 58–59, 60t
results in, 57–62
statistics summary in, 51t–52t
countries listed in, 51t–52t
variables and, 56t
tests of, 57t
alternative, 62, 63t, 64
time series of, 53f
Cross-border mergers, 16, 25
acquirers in, 43, 45, 48, 62, 64, 65
contractual convergence and, 44, 71,
72–73. See also Aventis
examples of, 44, 72
domestic mergers v., 16
finance literature and, 45
frequency of, 25, 27f
governance motive in, 43–69
MLs’ impact on, 32
cross-sectional evidence in, 32, 34
panel regression results in, 34–39
number of
by region and year, 31t
by year, 26f
targets in, 43, 45, 48, 62, 64, 65
CTS Corp. v. Dynamics Corp of America,
117
Cumulative abnormal returns (CAR),
140
Czech Republic’s Competition Act, 21, 23
D
DaimlerChrysler, 72, 243
Danone, 211
Delaware Supreme Court, 117, 164
Delistings, in Germany, 193, 193t, 243, 244
Denmark
acquisitions of domestic firms in, 28t
cross-border M&As in, 51t
MLs in, 19t, 22t, 23t–24t
effect of, 33t
squeeze-out procedures in, 209
Deprivation, of property, 205
Deutsche Telekom, 243, 250
discount rates reflecting after-tax costs of
equity to capitalize expected earn-
ings of, 252, 253t, 254–255
discounted earnings value of, 250, 251t,
252
long-term planning and, 251t,
252
mid-term planning and, 251t, 252
sustainable, 251t, 252
equity value of, 255, 255t, 256
derivation of, 255, 255t, 256
special items in, 255, 255t
merger valuation of, 250–256
T-Online and, 243, 250, 252, 255, 255t,
256
Disciplinary mergers, 9, 103, 104–105. See
also Hedge fund shareholder
activism
agency theory and, 106
conditions for, 105–106
disappearance of, 112–113
EMH and, 105–106
management turnover and, 105,
106–108
theory of, 105–106
waves/shocks and, 110–111
implications in, 111–113
Disclosure, transparency and, 176–177
EU, 176–178
Discounted cash flow model, 246
Discounted earnings model, 246
IDW S1 and, 246
Discriminatory buybacks, 270. See also
Buybacks
Disproportionate class of shares,
173
Distributive efficiency, 171n
Dividend streaming, Dutch auctions and,
12, 268–272
Dividend substitution, buybacks and, 264,
265
Divisions, squeeze-outs v., 203
Domestic mergers, 16
cross-border mergers v., 16
frequency of, 25, 27t
MLs’ impact on, 32
cross-sectional evidence in, 32,
34
panel regression results in, 34–39
number of
by country and year, 28t–29t
by region and year, 30t
by year, 26f
Dual-class capitalization, 164, 178, 179,
180, 181, 183
278 Index

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