Mergers, Acquistions and Control of Telecommunications Firms in Europe
Regulation Initiative Working Paper Series No. 38
33 Pages Posted: 6 Sep 2002
Date Written: August 2000
Evidence is presented on twelve large aquisitions by telecommunications firms in Europe. Although the average effect on acquirers' shareholder value is not significantly different from zero, there is high dispersion in the results. This suggests that detailed studies may uncover important aspects of the constraints that exist in the corporate control market of telecommunication firms. A case study of the Spainish firm Telefonica suggests that corporate governance problems and political intervention are significant components of these constraints.
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