Evaluating M&Deals–Announcement Effects Risk Arbitrage and Event Risk Harvard Case Solution & Analysis

The announcement of a merger or acquisition sends new information to capital markets. This article describes how the share price and the target buyer to behave after the deal was announced. First, for all of the shareholders' agreement, which, undoubtedly, will be held in the note defines and describes the effects of childbirth fundamental relationship between arbitration and price target buyers of shares. It shows how after the announcement of the price can be used to derive the estimate of the market synergies. He then explains how the beta version of the two companies changed after the announcement and arbitrage relationship between prices in the cash and stock deal. Finally, it defines the event risk and explain how it affects the bid price and Target. "Hide
by Carliss Y. Baldwin 8 pages. Publication Date: December 3, 2007. Prod. #: 208103-PDF-ENG

Evaluating M&Deals–Announcement Effects Risk Arbitrage and Event Risk Case Solution Other Similar Case Solutions like

Evaluating M&Deals–Announcement Effects Risk Arbitrage and Event Risk

Share This