This book highlights research-based case studies in order to analyze the wealth created in the world's largest mergers and acquisitions (M&A). This book encourages cross fertilization in theory building and applied research by examining the links between M&A and wealth creation. Each chapter covers a specific case and offers a focused clinical examination of the entire lifecycle of M&A for each mega deal, exploring all aspects of the process. The success of M&A are analyzed through two main research approaches: event studies and financial performance analyses. The event studies examine the abnormal returns to the shareholders in the period surrounding the merger announcement. The financial performance studies examine the reported financial results of acquirers before and after the acquisition to see whether financial performance has improved after merger. The relation between method of payment, premium paid and stock returns are examined. The chapters also discuss synergies of the deal-cost and revenue synergies.
Mergers and acquisitions represent a major force in modern financial and economic environment. Whether in times of boom or bust, M&As have emerged as a compelling strategy for growth. The biggest companies of modern day have all taken form through a series of restructuring activities like multiple mergers. Acquisitions continue to remain as the quickest route companies take to operate in new markets and to add new capabilities and resources. The cases covered in this book highlights high profile M&As and focuses on the wealth creation for shareholders of acquirer and target firms as a financial assessment of the merger's success. The book should be useful for finance professionals, corporate planners, strategists, and managers.

?B Rajesh Kumar is a professor of finance at IMT Dubai. He received his Ph.D. from the Indian Institute of Technology, IIT Kharagpur. His research interest are in areas of applied corporate finance, valuation and mergers and acquisition. He has published over 45 empirical research papers in refereed international journals. He has written six books of which three were published by Academic Press Elsevier USA (Strategies of Banks and other Financial Institutions ; Valuation Concepts and theories ; Strategic Financial Management Case Book), one each by Palgrave Macmillan UK (Case studies on Megamergers );McGraw-Hill India (Mergers and Acquisition: Text and Cases) ; ICFAI Books (Strategies of Indian Pharma Industry).

1;Preface;6 2;Acknowledgment;9 3;Contents;10 4;1: Mergers and Acquisitions;12 4.1;Introduction;12 4.2;Strategic Drivers for M&A in Different Industry Sectors;13 4.3;Different M&A Strategies;16 4.4;Motivation for Mergers and Acquisitions;17 4.5;Types of M&As;18 4.6;Synergies in Mergers;19 4.7;Value Creation in Mergers;21 4.8;Due Diligence in Mergers and Acquisitions;21 4.9;Methods of Payment in M&A;22 4.10;Post-merger Integration;22 4.11;Review of Research Studies on Mergers and Acquisitions;23 4.12;References;25 5;2: Vodafone Acquisition of Mannesmann;27 5.1;Introduction;27 5.2;The Merger Story;28 5.3;Merger Highlights;30 5.4;Regulatory Issues;31 5.5;Strategic Perspective of the Merger;31 5.6;Post-merger Integration;33 5.7;Merger Analysis;34 5.8;Operating Performance Analysis (Table 2.6);35 5.9;Stock Wealth Analysis: Acquirer;37 5.10;Wealth Analysis of Target Firm;39 5.11;References;39 6;3: American Online: Time Warner Merger and Other Restructuring;40 6.1;Introduction;40 6.1.1;Highlights of Time Warner;40 6.1.2;Corporate Restructuring by Time Warner (Table 3.1);41 6.1.3;Time Inc. Merges with Warner Communications;42 6.1.4;Time Warner-Turner Broadcasting Merger;43 6.1.5;American Online and Time Warner Merger;44 6.1.6;Strategic Perspective;44 6.1.7;Reasons for Merger Failure;45 6.1.8;Wealth Effects of Merger on Time Warner (Tables 3.3 and 3.4);47 6.1.9;Operating Performance Analysis;47 6.1.10;Other Acquisitions;50 6.1.11;Spin-Offs;50 6.1.11.1;Spin-Off of AOL;50 6.1.11.2;Spin-Off of Time Warner Cable;50 6.1.11.3;Spin-Off of Time Inc.;50 6.1.12;AT&T Acquires Time Warner;51 6.2;References;52 7;4: Acquisitions by Verizon;53 7.1;Introduction;53 7.2;Verizon Communications Acquisition of Verizon Wireless;54 7.3;Financial Highlights of the Deal;55 7.4;Strategic Perspective of the Deal;55 7.5;Verizon's Acquisition of AOL;58 7.6;Acquisition of Yahoo by Verizon Communications;60 7.7;Other Corporate Restructuring by Verizon;63 7.8;References;64 8;5: DowDuPont Merger;65 8.1;Dow Chemical Company;65 8.2;Divestitures;66 8.3;Restructuring Plan;66 8.4;DuPont;66 8.5;Restructuring by DuPont;67 8.6;DowDuPont;68 8.7;Merger Announcement;68 8.8;Merger Highlights;69 8.9;Merger Completion;69 8.10;Strategic Advantages;70 8.11;Integration Process;70 8.12;Regulatory Issues;71 8.13;Merger and Wealth Effects;72 8.13.1;Announcement Effects for DuPont;72 8.13.2;Announcement Effects for Dow Chemical;73 8.14;References;75 9;6: Mergers and Acquisitions by Anheuser-Busch InBev;76 9.1;InBev's Acquisition of Anheuser-Busch;77 9.2;Merger of AB InBev with SABMiller;78 9.3;Transaction Highlights;79 9.4;Merger Synergy;80 9.5;Divestments due to the Merger Deal;80 9.6;Other Acquisitions of AB InBev;81 9.7;Merger Announcement Effect on Acquirer AB InBev's Stock Price (Table 6.2);81 9.8;References;84 10;7: Merger of Kraft and Heinz Company;85 10.1;Introduction;85 10.2;Kraft Heinz Merger;86 10.3;Terms of the Merger;86 10.4;Merger Synergies;87 10.5;Valuation Analysis;88 10.5.1;Effect of Merger Announcement;90 10.6;References;90 11;8: Acquisitions by Pfizer;91 11.1;Introduction;91 11.2;Strategic Drivers for M&A in Pharmaceutical Industry;92 11.3;Mergers and Acquisitions by Pfizer;93 11.4;Pfizer Acquisition of Warner-Lambert;94 11.5;Highlights of the Deal;95 11.6;Strategic Perspective of the Deal;95 11.7;Acquisition Announcement Effect on Stock Wealth;96 11.8;Pfizer-Pharmacia Merger;96 11.9;Strategic Advantage;98 11.10;Merger Highlights;99 11.11;Wealth Creation in Pfizer-Pharmacia Merger;99 11.12;Merger with Wyeth;99 11.13;Terms of the Merger;100 11.14;Deal Synergies;101 11.15;Strategic Advantages;101 11.16;Merger Announcement and Stock Wealth Impact;102 11.17;Operating Performance Analysis;104 11.18;References;105 12;9: ExxonMobil Merger;106 12.1;Industry Scenario;106 12.2;ExxonMobil Corporation;107 12.3;ExxonMobil Merger;107 12.4;Deal Highlights;109 12.5;Merger Motivations;109 12.6;Strategic Benefits from the Deal;110 12.7;Regulatory Issues;110 12.8;Merger Valuation;110 12.9;