You need to upgrade your Flash Player
-$0.20 (-0.66%)
11:59PM (15 mins delay)
Sep 29, 2009 - 2:45 AM EDT
Robert Salomon submits:Last week I discussed winners and losers in M&A deals (see Acquisitions: A Great Shareholder Ripoff?). I lamented what I see as a transaction that too often rewards interested parties, top executives, and shareholders of the target firm at the expense of acquiring firm shareholders. I mentioned, in particular, how top executives on the sell-side stand to benefit from a takeover of their firm – e.g., via handsome golden parachutes and the immediate vesting of generous option packages.
I was therefore interested to stumble across a recent academic study (mentioned on CNBC.com) that details one interesting way top executives from target firms may be appropriating private rents at the expense not only of acquiring firm shareholders, but also at the expense of their own shareholders (see Should CEO Buyout Options be a Securities Violation?).
Source: Seeking Alpha (Sep 29, 2009 - 2:45 AM EDT)
© 2009 UpDown. All Rights Reserved.
Make a suggestion for this page
Data powered by QuoteMedia (Terms of Use). Data delayed 15 minutes unless otherwise indicated.
