Mergers and acquisitions have become a prominent, and permanent,
part of the corporate landscape.In these high-stakes games,companies
often risk a substantial percentage of their market capitalization in an
effort to improve their competitive positions. And unlike routine capi-
tal investments, merger and acquisition (M&A) deals often strike like
lightning, literally changing a company’s strategic and financial circum-
stances overnight.
Mergers and acquisitions are significant for investors for several rea-
sons. First, M&A activity is so pervasive that sooner or later it affects a
sizable portion of most stock portfolios. Second, no corporate
announcement ...