Corporate Governance and Regulatory Impact on Mergers and Acquisitions (eBook)

Corporate Governance and Regulatory Impact on Mergers and Acquisitions 4
Copyright Page 5
Contents 6
Acknowledgments 8
About the Editors 10
List of Contributors 12
Chapter 1: Understanding Mergers and Acquisitions: Corporate Governance and Regulatory Issues 17
1.1 Corporate Governance and Takeovers 17
1.2 Key Aspects of Takeover Regulation 19
1.3 Overview of the Research Presented in this Volume 22
References 28
Chapter 2: The Effect of Merger Laws on Merger Activity: International Evidence 31
2.1 Introduction 31
2.2 Related Literature 33
2.3 Merger Laws 34
2.4 Merger Data 41
2.5 Domestic and Cross-Border Mergers, and Merger Laws 48
2.6 Conclusion 55
References 56
Chapter 3: The Governance Motive in Cross-Border Mergers and Acquisitions 59
3.1 Introduction 59
3.2 A Simple Model of Cross-Border Merger and Acquisition Activity 61
3.3 Empirical Analysis 66
3.4 Conclusion 80
Chapter 3 Appendix 81
References 83
Chapter 4: Corporate Governance Convergence Through Cross-Border Mergers: The Case of Aventis 87
4.1 Introduction 87
4.2 Aventis: Characteristics and Main Results 89
4.3 The Merging Parties 91
4.4 The Merger: The Formation of Aventis 96
4.5 Corporate Governance: Rhocircne-Poulenc, Hoechst, and the French and German Corporate Codes 101
4.6 Corporate Governance of Aventis 107
4.7 Conclusion 112
References 116
Acknowledgments 117
Chapter 5: Whither Hostility? 119
5.1 Introduction 119
5.2 Discipline as a Motivation for Mergers 120
5.3 The Decline of the Hostile Takeover 129
5.4 The Reappearance of Hostility 134
5.5 Conclusion 142
References 143
Chapter 6: Corporate Governance and acquisitions: Acquirer Wealth Effects in the Netherlands 147
6.1 Introduction 147
6.2 Literature Review 150
6.3 Research Design 154
6.4 Results 157
6.5 Conclusion 174
References 175
Chapter 7: European Union Takeover Regulation and the One-Share One-Vote Controversy 179
7.1 Introduction 179
7.2 Shareholder Democracy 180
7.3 Economics of Ownership and Corporate Voting: A Brief Overview 184
7.4 Is One-Share One-Vote Optimal? 185
7.5 Conclusion and Policy Implications 199
References 201
Chapter 8: Opportunities in the Merger and Acquisition Aftermarket: Squeezing Out and Selling Out 207
8.1 Introduction 207
8.2 Rationale for the Squeeze-Out Right and the Sellout Right 209
8.3 Squeeze-Out Right and the Protection of Private Property 221
8.4 The Squeeze-Out Right and the Sellout Right in a Comparative Legal Perspective 223
8.5 Conclusion 255
References 257
Chapter 9: Valuation Methods and German Merger Practice 259
9.1 Introduction 259
9.2 The Background of Merger Processes in Germany 260
9.3 Basic Valuation Principles in Germany 262
9.4 The German Tax CAPM-a Tax CAPM with German Income Tax 263
9.5 A Valuation Example: Merger Valuation of Deutsche Telekom 266
9.6 Consequences for German Takeover Practice 272
9.7 Conclusion 273
References 273
Chapter 10: Share Buybacks, Institutional Investors, and Corporate Control 275
10.1 Introduction 275
10.2 Buyback Mechanisms 276
10.3 Myth and Reality of Buybacks 279
10.4 Conclusion 287
Acknowledgments 288
References 288
Index 291