Mergers and Acquisitions in Banking and Finance by Ingo Walter pdf free download

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Mergers and Acquisitions in Banking and Finance by Ingo Walter pdf free download

Mergers and Acquisitions in Banking and Finance by Ingo Walter pdf free download On April 6, 1998, the creation of Citigroup through the combination of Citicorp and Travelers Inc. was announced to the general applause of analysts and financial pundits. The “merger of equals” created the world’s largest financial services firm—largest in market value, product range, and geographic scope. Management claimed that strict attention to the use of capital and rigorous control of costs (a Travelers specialty) could be combined with Citicorp’s uniquely global footprint and retail banking franchise to produce uncommonly good revenue and cost synergies.

Mergers and Acquisitions in Banking and Finance by Ingo Walter pdf free download

In the four years that followed, through the postmerger Sturm und Drang and a succession of further acquisitions, Citigroup seemed to outperform its rivals in both market share and shareholder value by a healthy margin. Like its home base, New York City, it seemed to show that the unmanageable could indeed be effectively managed through what proved to be a rather turbulent financial environment. On September 13, 2000, another New York megamerger was announced. Chase Manhattan’s acquisition of J.P. Morgan & Co. took effect at the end of the year.

Mergers and Acquisitions in Banking and Finance by Ingo Walter pdf free download

Commentators suggested that Morgan, once the most respected bank in the United States, had at last realized that it was not possible to go it alone. In an era of apparent ascendancy of “universal banking” and financial conglomerates, where greater size and scope would be critical, the firm sold out at 3.7 shares of the new J.P. Morgan Chase for each legacy Morgan share. Management of both banks claimed
significant cost synergies and revenue gains attributable to complementary strengths in the two firms’ respective capabilities and client bases.

Mergers and Acquisitions in Banking and Finance by Ingo Walter pdf free download

Within two years the new stock had lost some 44% of its value (compared to no value-loss for Citigroup over the same period), many important J.P. Morgan bankers had left, and the new firm had run into an unusual number of business setbacks, even as the board awarded top management some $40 million in 2002 for “getting the deal done.”

Mergers and Acquisitions in Banking and Finance by Ingo Walter pdf free download

Mergers and Acquisitions in Banking and Finance by Ingo Walter pdf free download


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