View Single Post

Default 

February 25th, 2008, 22:07
Originally Posted by doctor_kaz View Post
I always laugh when a company comes along and offers to buy the company at a huge premium and they claim that it's "too low". They executives just say this because they know that they'll lose their jobs.
If the executives at the takeover company are doing their job the offer should be too low, if they offer more they're wasteing their own shareholder's value. Most of the studies I've seen have been fairly scathing about mergers in general, aquiring companies will generally underestimate costs and overestimate benefits. Its also not necessary for the executives to loose their jobs - certainly in EA's case they've a history of running the compaines into the dirt before they get rid of the people who built them a decade or so later.
V7 is offline

V7

Keeper of the Watch

#16

Join Date: Jan 2008
Posts: 668