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The Art of Capital Restructuring: Creating Shareholder Value through Mergers and Acquisitions by H. Kent Baker, Halil Kiymaz

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CHAPTER 24

International Takeovers and Restructuring

RITA BISWAS

Associate Professor of Finance, University at Albany–SUNY

INTRODUCTION

Despite the global economic downturn during 2008 and 2009, one set of corporate activities continues to grow: mergers and acquisitions (M&As). According to Bloomberg Businessweek (2010), more than 2,034 cross-border transactions were announced by the end of the first quarter of 2010. The total deal value exceeded $249 billion, which is more than double the corresponding figure for the first quarter of 2009. Exhibit 24.1 shows the global distribution of cross-border activity from 2007 to the first quarter of 2010 across four key regions: the United States, Europe, Asia (excluding Japan), and Japan. In general, both the number of deals and deal values have been declining since 2007, but signs of recovery in global M&A markets for almost all regions emerged during the first quarter of 2010. However, while cross-border deals in the United States, Europe, and Japan declined between 2008 and 2009, a few large deals in the category of outward acquisitions from Asia caused both the value of outbound deals and total deals to increase between 2008 and 2009 in the Asian category.

Exhibit 24.1 Cross-Border M&A Activity from 2007 to the First Quarter of 2010

Source: This exhibit shows the outbound and inbound cross-border M&A activity during 2007 to the first quarter of 2010 by aggregate deal value and the number of deals for the United States, Europe, Asia, ...

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