The role of governments in hostile takeovers – Evidence from regulation, anti-takeover provisions and government interventions

Rowoldt, Maximilian; Starke, Dennis

doi:10.1016/j.irle.2016.03.003

Cited by 16 publications

(17 citation statements)

References 43 publications

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“…These and other issues can become even more complex because of the countries' economic nationalism, national cultures, protectionism (see D'Costa, ), and regulatory policies (Cain et al, ; Catan & Kahan, ; Cho, ; Rowoldt & Starke, ; Schnitzer, ; Seretakis, ). Also important are the issues of “ sociocultural integration ” (Rottig, , p. 439) and corporate strategies (Patrone, , ).…”

Section: Kraft's Acquisition Of Cadbury and An Uninvited Bidmentioning

confidence: 99%

Kraft's acquisition of Cadbury: Was it an amicable transatlantic merger or a hostile takeover?

Anwar

2018

Thunderbird Intl Bus Rev

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This case-based research evaluates and discusses Kraft's 2009-2010 acquisition of the UKbased Cadbury, which turned into a bitter fight and a hostile takeover. As both firms have a rich history and distinct brand identities, the merger came to the attention of the global media and public on both sides of the Atlantic. Drawing on the merger's lengthy negotiations and the two companies' distinctive corporate cultures, this article analyzes the merger and its chaotic negotiations and developments. The merger was opposed in the United Kingdom because of Kraft's harsh approach of targeting an iconic British brand that had been in business for over 150 years.Eventually, both companies did compromise in an amicable manner and concluded a friendly tieup. The postmerger period reveals that Kraft's acquisition was a part of its future reorganization and expansion in global markets. This case-based research also provides academic and practical implications for international business managers as well as multinational corporations.

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Section: Kraft's Acquisition Of Cadbury and An Uninvited Bidmentioning

confidence: 99%

Kraft's acquisition of Cadbury: Was it an amicable transatlantic merger or a hostile takeover?

Anwar

2018

Thunderbird Intl Bus Rev

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“…In addition to these indicators are added other, such as corporate management factors [26,27], environmental factors [28,29], level of legislation development [30] and so on.…”

Section: Literature Reviewmentioning

confidence: 99%

Modelling bankruptcy prediction models in Slovak companies

Kováčová

Klieštiková

2017

SHS Web Conf.

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Abstract. An intensive research from academics and practitioners has been provided regarding models for bankruptcy prediction and credit risk management. In spite of numerous researches focusing on forecasting bankruptcy using traditional statistics techniques (e.g. discriminant analysis and logistic regression) and early artificial intelligence models (e.g. artificial neural networks), there is a trend for transition to machine learning models (support vector machines, bagging, boosting, and random forest) to predict bankruptcy one year prior to the event. Comparing the performance of this with unconventional approach with results obtained by discriminant analysis, logistic regression, and neural networks application, it has been found that bagging, boosting, and random forest models outperform the others techniques, and that all prediction accuracy in the testing sample improves when the additional variables are included. On the other side the prediction accuracy of old and well known bankruptcy prediction models is quiet high. Therefore, we aim to analyse these in some way old models on the dataset of Slovak companies to validate their prediction ability in specific conditions. Furthermore, these models will be modelled according to new trends by calculating the influence of elimination of selected variables on the overall prediction ability of these models.

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“…This is interesting given the existence of a treaty (within their sample context) which offered no jurisdiction to firms to block acquisitions for reasons of nationality. The same was true in Rowoldt and Starke (2016) who found that governments are more likely to directly intervene in hostile takeovers if the bidder is foreign, and in Zhang and He (2014), who noticed that the review process for foreign investors in China was more demanding for foreign investors than for domestic ones.…”

Section: Protectionism and Cross-border Acquisition Completion And Durationmentioning

confidence: 80%

“…Hostile deal is negatively related to cross-border acquisition completion likelihood. This result is not surprising given that hostile bids occur when there is misalignment between the interests of the target firm's management and its shareholders (Rowoldt & Starke, 2016). If target management opposes a deal which shareholders support (or vice versa), completion may be obstructed by the inner workings of the target.…”

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confidence: 99%

The Impact of Protectionism on the Completion and Duration of Cross-Border Acquisitions

Callaghan¹

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<p>This study investigates the impact of protectionism in a host country on the completion likelihood of an announced cross-border acquisition and the time required to complete the acquisition. Adopting a legitimacy perspective, I identify and test boundary conditions at the firm and national levels to study the relationship between protectionism and cross-border acquisition completion and duration. I hypothesise that in host countries with a high level of protectionism, as reflected by the level of non-tariff barriers, cross-border acquisitions are less likely to be completed and the time taken to close the acquisition deal increases. I also propose that the relationships between protectionism and acquisition outcomes are moderated by critical target firm characteristics and the host country's economic condition. Specifically, these moderators include target firm size, target firm performance, the degree to which the target industry is sensitive to national security concerns, and the host country's GDP growth. I test these hypotheses using a sample of 675 cross-border acquisition attempts by firms in the manufacturing and services industries (excluding financial services) into the U.S. and Canada between 1995 and 2015. The results of the statistical analysis support the prediction that the higher the degree of protectionism, the lower likelihood of acquisition completion and the longer the duration is between acquisition announcement and completion. Findings also support the predicted moderating effects of the target firm size, performance and national security concern. However, the hypothesised moderating effect of the host country's GDP growth was not supported by the results. This finding suggests that host country protectionism impacts cross-border acquisition attempts, irrespective of the host country's economic development. These findings have significant implications for legitimacy-based explanations of cross-border acquisitions. In particular, the results of this study indicate that when protectionism is high, the host country is more likely to raise concerns around the legitimacy of foreign firms. In turn, these firms face adverse host country scrutiny which can result in a failed acquisition attempt, or an extended and therefore, costlier acquisition deal. The framework and findings of this study contribute to an institution-based view and, in particular, to a legitimacy-based perspective in the research on the internationalisation of firms.</p>

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The role of governments in hostile takeovers – Evidence from regulation, anti-takeover provisions and government interventions

Cited by 16 publications

References 43 publications

Kraft's acquisition of Cadbury: Was it an amicable transatlantic merger or a hostile takeover?

Kraft's acquisition of Cadbury: Was it an amicable transatlantic merger or a hostile takeover?

Modelling bankruptcy prediction models in Slovak companies

The Impact of Protectionism on the Completion and Duration of Cross-Border Acquisitions

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