Mergers are the combining of two or more firms to create synergies. These synergies
may come from various sources such as operational synergies come from
economies of scale or financial synergies come from increased value of securities
of the firm. There are vast amount of studies analysing operational synergies of
mergers. This study analyses the financial ones. This way the dynamics of purely
financial synergies can be revealed. Purely financial synergies can be transformed
into financial instruments such as securitization.
While analysing financial synergies the puzzle of distribution of financial synergies
between claimholders is investigated. Previous literature on mergers showed that
bondholders may gain more than existing shareholders of the merging firms. This
may become rather controversial. A merger may be synergistic but it does not
necessarily mean that shareholders¿ wealth will increase. Managers and/or shareholders
are the parties making the merger decision. If managers are acting to the
best interest of shareholders then they would try to increase shareholders¿ wealth.
To solve this problem first the dynamics of mergers were analysed and then new
strategies developed and demonstrated to transfer the financial synergies to the
shareholders.
| Identifer | oai:union.ndltd.org:BRADFORD/oai:bradscholars.brad.ac.uk:10454/5416 |
| Date | January 2010 |
| Creators | Arikan, Ali F. |
| Contributors | Kenc, Turalay |
| Publisher | University of Bradford, School of Management |
| Source Sets | Bradford Scholars |
| Language | English |
| Detected Language | English |
| Type | Thesis, doctoral, PhD |
| Rights | <a rel="license" href="http://creativecommons.org/licenses/by-nc-nd/3.0/"><img alt="Creative Commons License" style="border-width:0" src="http://i.creativecommons.org/l/by-nc-nd/3.0/88x31.png" /></a><br />The University of Bradford theses are licenced under a <a rel="license" href="http://creativecommons.org/licenses/by-nc-nd/3.0/">Creative Commons Licence</a>. |
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