Ivey Business Journal, "Knowledge Jam: Three Disciplines to Beat the Merger Performance Odds"

Blog Topic: 
Knowledge Jam

In response to the recession’s toll on businesses, as well as the current low costs of capital and rising levels of cash, economists have been forecasting a surge in M&A activity. That such a surge was already gathering steam became apparent in the first 16 weeks of 2011, when Reuters carried a hefty 8,510 articles on M&A. In April, we stood on the brink of one of the most influential mergers in the financial markets: The potential combination of NYSE and the NASDAQ-Intercontinental Exchange (ICE) venture. According to an April 19, 2011 letter, the NASDAQ-ICE team was “deeply committed” to a merger with the NYSE. It had offered a 21 percent premium over Deutsche Boerse’s competing offer, acquired $3.8B in secured financing, $66M in voting NYSE securities, and made a $350MM reverse breakup promise.1 It all but provided the roses and chocolates. Well, almost. This article is in the Ivey Business Journal July/August, 2011 Issue.


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