VALUING THE IMPACT OF SYNERGIES ON PUBLIC MERGERS/ACQUSITIONS IN THE PHARMACEUTICAL SECTOR ON THE EUROPEAN CAPITAL MARKETS

Oana Resceanu
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Oana Resceanu: Academy of Economic Studies FABBV Bucharest, Romania

Annals of University of Craiova - Economic Sciences Series, 2010, vol. 3, issue 38, 507-513

Abstract: Valuing and identifying synergies in mergers and acquisitions is one of the important issues in Corporate Finance. The aim of this paper is to value the impact of synergies resulted from mergers/acquisitions in the European pharmaceutical sector, realized between 2004 and 2007. In the study it has been analyzed the impact of the announcement of the deal on the stock price evolution of the acquiring companies for which it was used the event study technique. The results show clearly the positive market expectations in the day of the announcement as well as 6 days after, however the expected positive impact begins to fade out resulting in negative expectations in days 23 and 38, while regaining its confidence in day 39.

Keywords: mergers; acquisitions; synergies; valuation; public offers (search for similar items in EconPapers)
JEL-codes: C12 G15 G34 (search for similar items in EconPapers)
Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:aio:aucsse:v:1:y:2009:i:11:p:507-513

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