Abstract
Takeover bids make the financial headlines some time during nearly every month of the year, and many reports are compelling reading for people interested in industry and finance. This is particularly so as many of the companies are known to everyone. The object of this chapter is to consider some of the practical problems inherent in takeovers and amalgamations. In particular we consider the art of interpreting published accounts and methods of valuing businesses. This is followed by a discussion of the procedural matters to be observed when buying another company, a description of some of the defences used in fending off takeover bids and examples of where these have proved successful. The work of the Monopolies Commission and Takeover Panel is then examined, and the chapter is concluded with an account of recent business takeovers and mergers.
This is a preview of subscription content, log in via an institution to check access.
Preview
Unable to display preview. Download preview PDF.
Further Reading
‘Acquisitions and Amalgamations’, Economic Trends, April 1963 and November 1965.
L. R. Amey, The Efficiency of Business Enterprises (London: Allen & Unwin, 1969).
L. R. Amey and D. A. Egginton, Management Accounting: A Conceptual Approach (London: Longman, 1973) ch. 4.
G. D. Bond, Corporate Finance for Management (London: Butterworth, 1974) chs 17, 18, 27, 28.
R. J. Chambers, Financial Management (London: Sweet & Maxwell, 1967).
P. Hunt, C. M. Williams and G. Donaldson, Basic Business Finance (Homewood, Ill.: Irwin, 1974) ch. 28.
F. R. Jervis, The Economics of Mergers (London: Routledge & Kegan Paul, 1971).
R. Jones and O. Harriott, Anatomy of a Merger (London: Pan, 1970).
G. Meeks, Disappointing Marriage: a Study of the Gains from Merger (Cambridge University Press, 1977).
K. Midgley and R. G. Burns, Accounting Case Studies (London: Macmillan, 1971) Case Study 4.
K. Midgley and R. G. Burns, Case Studies in Business Finance and Financial Analysis (London: Macmillan, 1971) Case Study 5.
R. W. Moon, Business Mergers and Takeover Bids, 5th ed. (London: Gee, 1976).
G. D. Newbould, Management and Merger Activity (Liverpool: Guthstead, 1970).
C. K. Rowley, ‘The Monopolies Commission and Rate of Return on Capital’, Economic Journal, March 1969.
J. M. Samuels, R. E. V. Groves and C. S. Goddard, Company Finance in Europe (London: Institute of Chartered Accountants, 1975).
J. M. Samuels and F. M. Wilkes, Management of Company Finance (London: Nelson, 1971) ch. 15.
M. A. Weinberg, Takeovers and Amalgamations, 3rd ed. (London: Sweet & Maxwell, 1971).
C. A. Westwick, The Accuracy of Profit Forecasts in Bid Situations (London: Institute of Chartered Accountants, 1972).
Copyright information
© 1979 Kenneth Midgley and Ronald G. Burns
About this chapter
Cite this chapter
Midgley, K., Burns, R.G. (1979). Business Combinations. In: Business Finance and the Capital Market. Palgrave, London. https://doi.org/10.1007/978-1-349-16186-7_12
Download citation
DOI: https://doi.org/10.1007/978-1-349-16186-7_12
Publisher Name: Palgrave, London
Print ISBN: 978-0-333-26452-2
Online ISBN: 978-1-349-16186-7
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)