by Au Yeung Yuk Hang, Tong Henry. / Thesis (M.B.A.)--Chinese University of Hong Kong, 1999. / Includes bibliographical references (leaves 84-89). / TABLE OF CONTENTS / ABSTRACT --- p.ii / TABLE OF CONTENT --- p.iii / LIST OF TABLES --- p.vi / LIST OF FIGURES --- p.vii / Chapter / Chapter I. --- INTRODUCTION --- p.1 / Chapter II. --- METHODOLOGY --- p.4 / Chapter III. --- FAVORABLE OUTCOMES --- p.5 / Synergy Effects --- p.5 / Economies of Scale --- p.6 / Economics of Scope --- p.7 / Better Management --- p.7 / Attract and Retain Talents --- p.8 / Tax Benefits --- p.8 / Risk Diversification --- p.9 / Assets (Loan) --- p.10 / Liabilities (Deposit) --- p.11 / Earnings --- p.12 / Increase Market Share --- p.12 / Entry into New Market --- p.14 / Improve Financial Performance --- p.14 / Too Big To Fail --- p.15 / Ability to Issue Highly-rated Paper --- p.15 / Cheaper Offered Price --- p.16 / Too Big To Swallow --- p.17 / Chapter IV. --- CAUSES OF FAILURE --- p.18 / Culture Clashes --- p.21 / Management Changes --- p.22 / Customer Grievance --- p.23 / Employees Dissatisfaction --- p.24 / Computer System --- p.24 / Y2K Problem --- p.25 / Controversy before merger or acquisition --- p.26 / Relationship between Acquirer Bank and Acquired Bank --- p.27 / Lack of Agreed Objective --- p.27 / Unfulfilled Acquirer Bank Management Promises --- p.28 / Improper or Unstable Position in the merged bank --- p.29 / Over Dependence on a Few Executives --- p.30 / Acquired Bank Out of Acquirer Bank's Expectation --- p.30 / Acquirer Bank Deceived by Acquired Bank --- p.31 / Paid Too Much --- p.32 / Corporate Indigestion --- p.32 / Acquirer bank does not understand the business of the acquired bank --- p.33 / Improbable Events --- p.33 / Family Control --- p.34 / Anti-takeover Response --- p.35 / Litigation by Target Firm --- p.36 / Poison Pills --- p.36 / Greenmail --- p.36 / Keeping the Stock Price at High Level --- p.37 / White Knight --- p.37 / Chapter V. --- CASE STUDY: THE ACQUISITION OF OVERSEAS TRUST BANK (OTB) BY DAO HENG BANK (DHB) --- p.38 / Introduction --- p.38 / Company Background before the Acquisition --- p.39 / Dao Heng Bank (DHB) --- p.39 / Overseas Trust Bank (OTB) --- p.40 / Highlights in Acquisition --- p.42 / Timetable of Major Events --- p.42 / Financing Package --- p.43 / Favorable Outcomes to Dao Heng Bank in the Acquisition --- p.43 / Gigantic Organic Growth and Being One of Regional Banking Leaders --- p.44 / Extraordinary Financial Performance --- p.44 / Improving Operating Efficiency by Synergy --- p.45 / Risk Diversification --- p.47 / Adequate Capital for Exploring New Opportunities --- p.48 / "Recruitment, Retention and Retraining Banking Professionals for Future Development" --- p.49 / Able to Issue High-rated Paper --- p.50 / Difficulties to Dao Heng Bank in the Acquisition --- p.50 / Culture Clashes --- p.51 / Sudden Change of Management Level --- p.51 / Maintaining the Customer Confidence --- p.52 / Agreement with the Government --- p.52 / Employees Distress and Dissatisfaction --- p.52 / The Compatibility of Computer System --- p.53 / Chapter VI. --- RECOMMENDATIONS --- p.54 / Structural Changes --- p.55 / Criteria of a healthy Structural Change --- p.55 / Process and Operating System Changes --- p.55 / Culture Change --- p.56 / Good Planning --- p.57 / Easing Culture Clash --- p.58 / Respecting Cultures --- p.58 / Systematically Learning about Partners' Cultures --- p.59 / Determine Merged Culture --- p.60 / Employee Satisfaction --- p.60 / Good Employee Communication --- p.61 / Manage Psychological Force & Emotional Climate --- p.63 / Reward Right People and Let Wrong People Go --- p.63 / Get Employee Involved --- p.64 / "Deal with Disparities in Compensation, Benefits, and Incentive Programs" --- p.64 / Customer Retention --- p.65 / Focus on the Business Customer Base --- p.65 / Deal with Customers' Uncertainty --- p.66 / Conducts Extensive Researches --- p.66 / Measuring Customers Satisfaction --- p.67 / Recognize and Reward Top Retainers --- p.67 / Computer Systems --- p.68 / Determining business requirements --- p.68 / Due Diligence --- p.68 / Assessing compatibilities --- p.69 / Setting priorities --- p.69 / Developing an integration plan --- p.70 / Well Documentation --- p.70 / Get System managers involved before Mergers and Acquisitions --- p.71 / Y2K Problem --- p.71 / Chapter VII. --- FUTURE PROSPECT --- p.72 / APPENDIX 1 --- p.74 / APPENDIX 2 --- p.77 / APPENDIX 3 --- p.80 / APPENDIX 4 --- p.81 / APPENDIX 5 --- p.82 / APPENDIX 6 --- p.83 / BIBLIOGRAPHY --- p.84