Management, Loose-Leaf Version
Management, Loose-Leaf Version
13th Edition
ISBN: 9781305969308
Author: Richard L. Daft
Publisher: South-Western College Pub
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Chapter 3, Problem 6DQ
Summary Introduction

To determine:

The reason for mergers and acquisitions to be the biggest in the year 2015.

Introduction:

Mergers and acquisitions refer to the process in which two companies are consolidated by means of assets or other financial instruments. The board of directors of the companies approves the merger.

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The boards of 2 major telecommunications companies recently agreed to a $16 billion merger that would create the world's largest telecommunications company in the world. Although some agree that the synergy between these companies could be dynamic, others feel consumers could ultimately pay the price for the merger, depending on which company becomes dominant in the various service areas. Answer the following questions: Why do you think consumer advocates have expressed concern over such merger possibilities?
Why do you think the merger and the acquisition tookplace? What internal and external factors may have influenced the outcome? How do you think it was perceived bythe employees of the firms in question?
Recent corporate governance reforms in various countries urge (and often require) firms to add more outside directors to their boards and separate the jobs of board chairman and CEO. Yet, academic research has not been able to conclusively support the merits of both practices. Why?
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