Merger madness rarely pays off, so why do firms still make these deals?

martin2345uk

ruggedtoast wrote: »

My money is on weak and venal.

Mine too

Better start brushing up my CV.

cepheus

Now where have I heard this before?

historically, three views of the corporation have emerged and rotated in cyclical fashion.
First, that the corporation is primarily a creature of the state. Second, that the corporation is an entity separate from both the state and from its shareholders. Third, that the corporation is merely an aggregate of its individual members or shareholders. It’s the latter view that has been dominant, he notes, and explains that under this view CSR* is an illegitimate attempt by managers to tax shareholders without their consent, and leads to managers being unaccountable to the shareholders that elected them.

*PS in case you don't know CSR means Corporate Social Responsibility.

cepheus

David Cameron likes takeover bids where the smaller company is bought out and asset stripped. That's what he did with the Lib Dems

IronWolf

I don't get why Miliband is harping on about asset stripping. AZN doesn't have any assets besides its drugs and pipeline. PFE wants to re-domicile in the UK and couldn't do that if it broke up AZN and sold it all off in pieces.

Why on earth would PFE split up AZN and sell off individual drugs if it doesn't do that in its own business?

And why are politicians getting into such a frenzy when a takeover bid has not even been accepted, probably wont be, and PFE's only likely shot is a hostile takeover...

movilogo

Dixons and Carphone warehouse merged and immediately some permanent employees have been served notice of redundancy! :mad:

Mergers only make top honchos better and hurts the common employees.

CLAPTON

movilogo wrote: »

Dixons and Carphone warehouse merged and immediately some permanent employees have been served notice of redundancy! :mad:

Mergers only make top honchos better and hurts the common employees.

if no-one had ever been made redundant then we would all be subsistence farmers

Generali

movilogo wrote: »

Dixons and Carphone warehouse merged and immediately some permanent employees have been served notice of redundancy! :mad:

Mergers only make top honchos better and hurts the common employees.

Surely in the case of Dixons, that was going bust, the majority of employees were well served by a merger as that way at least some of them kept their jobs.

If nobody was ever made redundant, the High Street would be full of fletchers and blacksmiths.

movilogo

Surely in the case of Dixons, that was going bust, the majority of employees were well served by a merger as that way at least some of them kept their jobs.

Dixons actually announced good amount of profit in their trading statement. So business doing good yet people losing jobs!

Seabee42

Well its well known small companies create jobs and big companies destroy them, its not knew.

Nb I accept progress should happen but there is also a balance else there really will only be minimum wage jobs left that computers/robots/the call centre off shore do not do

ruggedtoast

movilogo wrote: »

Dixons and Carphone warehouse merged and immediately some permanent employees have been served notice of redundancy! :mad:

Mergers only make top honchos better and hurts the common employees.

Dixons are the best advert for Amazon I have ever seen. A business model built around pressure selling useless insurance and refusing to exchange or return not fit for purposes electronics.

And now they own CPW, who were previously, sort of alright.

Come back Best Buy, now thats one American take over I would not have objected to.