Mergers, acquisitions and control of telecommunications firms in Europe

Economics

Regulation Initiative Working Paper Series

2000

Evidence is presented on twelve large acquisitions by telecommunications firms in Europe. Although the average effect on acquirers' sharholders value is not significantly differnect 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 telecommunications firms. A case study of the Spainish firm Telefonica suggest that corporate governance problems and political intervention are significant components of these constraints

Regulation Initiative (closed)

38

Regulation Initiative Working Paper Series

No