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Contribution Details

Type Master's Thesis
Scope Discipline-based scholarship
Title The Link Between Bid Premiums and Synergies in M&A: An Event Study Approach
Organization Unit
Authors
  • Anthony Würmli
Supervisors
  • Michel Habib
  • Yushi Peng
Language
  • English
Institution University of Zurich
Faculty Faculty of Business, Economics and Informatics
Number of Pages 41
Date 2020
Abstract Text Awareness of how shareholders perceive announced transactions is crucial for managers of public companies, as wrong decisions can lead to significant value destruction. This thesis explores, whether premiums a↵ect transaction announcement returns di↵erently in the short term, when capturing synergies between the acquirer and target company is more feasible. Using the event study methodology, this thesis provides significant evidence for a positive change in the correlation between premium and abnormal returns to the acquirer for transactions with lower expected synergies. It is concluded, that strong fundamentals of the target company might be more important to shareholders than strategic fit.
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