Mergers and Acquisitions: Types, principles, historical information and empirical evidence from the Greek banking sector

Gerasimos G Rompotis
2015 Aestimatio The IEB International Journal of Finance  
This paper describes the types and main principles of mergers and acquisitions, a strategic policy adopted by many firms worldwide in their efforts to expand their business, enter new markets, sectors and countries as well as to mitigate the competition they face from rivals. In addition to the description of the various types of mergers and acquisitions, the motivations behind such actions are broken down along with the obstacles and counterincentives that can lead to the failure of such deals
more » ... ilure of such deals and the significant issue of financing a merger or an acquisition. A brief analysis of the recent trends in international mergers and acquisitions is subsequently provided. The paper goes on to focus on the recent wave of acquisitions in the Greek banking sector by highlighting the case of Alpha Bank's takeover of Emporiki Bank. The analysis performed provides some evidence of a positive financial effect for Alpha Bank's shareholders as a result of the announcement of that takeover. Fusiones y adquisiciones: tipos, principios, información histórica y evidencia empírica del sector bancario griego Rompotis, Gerasimos G. Resumen Este artículo describe los tipos y principios fundamentales de las fusiones y adquisiciones, política estratégica adoptada por muchas compañías de todo el mundo en su esfuerzo por expandir su negocio, entrar en nuevos mercados, sectores y países, así como por mitigar la competencia de otros rivales. Además de la descripción de los diferentes tipos de fusiones y adquisiciones, se desglosan las motivaciones que subyacen a tales acciones, junto con los obstáculos y contra-incentivos que pudieran hacer fracasar tales acuerdos, así como se estudia la importante cuestión de su financiación. A continuación, se lleva a cabo un breve análisis de las tendencias actuales en el curso de las fusiones y adquisiciones. Posteriormente, el artículo se centra en la ola de recientes adquisiciones en el sector bancario griego, destacando el caso de la absorción del Emporiki Bank por el Alpha Bank. El análisis realizado proporciona cierta evidencia del efecto positivo en el valor de la cartera de los de los accionistas del Alpha Bank provocado por el anuncio de tal absorción. Palabras clave: Fusiones, adquisiciones, sector bancario, Grecia. An additional form is the so-called "Leveraged Buy Out", which concerns the development and growth of a company via the assumption of debt in order to finance the acquisition of other entities, usually larger than itself. This is an aggressive developmental policy, which entails particularly high levels of risk for the firm relating to the high degree of leverage and the resulting extreme negative consequences should the plans financed by massive banking loans fail. 37 . 10: 32-65 announcement. However, statistically significant abnormal returns compared to the expected returns calculated using suitable models were not gained over that period.
doi:10.5605/ieb.10.2 fatcat:6nhte3xnandfvjla27xfgcbgk4