The implications for Ireland
Citation:
Teeling, John T. 'Symposium on the international dimension in corporate mergers and acquisitions: The implications for Ireland'. - Dublin: Journal of the Statistical and Social Inquiry Society of Ireland,Vol. XXVI No. 1, 1988/1989, pp133-149Download Item:
Abstract:
As is now common practice this paper uses "mergers" and "takeovers"
interchangeably.
Takeover activity is a normal part of business activity, though you would hardly
think so to read the lurid reports in the popular press. A mythology has grown up
in relation to merger activity. This is heightened by the emergence of a
vocabulary of emotive terms which mean mundane things in practice but sound
great - "Golden Parachutes" instead of "Redundancy Payments"; "White",
"Black" or "Grey Knights" meaning friendly, hostile or unknown (mentioned
suitor; "Dawn Raids" and "Saturday Night Specials" meaning a quick purchase
of a large block of shares, while the "Pacman Defence" means simply turning
the tables on the bidder. "Asset Strippers", "Raiders", and "Predators" are
investors wishing to make assets earn their keep to make them "Sweat" to use
the modern terminology.
Takeover specialists have achieved international stardom or notoriety
depending on your viewpoint. Is all of this deserved? I think not. Merger activity
is usually conducted in the public eye. Opportunities arise for quick profits which
sometimes tempt individuals into unethical and/or illegal behaviour. But this
should not disguise the true nature of takeovers which are an essential and
necessary part of the restructuring and industrial renewal process by which the
economy initiates and responds to change.
Takeover is only one form of investment activity. If a company expands by
building a new factory which is so cost effective that it wipes out competition,
then the investor is applauded. An innovator who introduces a new technology
which leads to closures, bankruptcies and job losses among competitors is
looked up to as a captain of industry and a wealth creator. Yet the investor who
uses takeovers as a means of restructuring an industry is often pictured as a
"Predator" or "Vulture".
Description:
Read before the Society, 2 March, 1989
Author: Teeling, John T.
Other Titles:
Symposium on the International Dimension in Corporate Mergers and AcquisitionsPublisher:
Statistical and Social Inquiry Society of IrelandType of material:
Journal articleCollections
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Journal of the Statistical and Social Inquiry Society of IrelandVol. XXVI No. 1 1988/1989
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