Managing Acquisition-Related Currency Risk Exposures: The E.ON-Powergen Case

Stefan Hloch, Ulrich Hommel and Karoline Jung-Senssfelder
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Stefan Hloch: E.ON AG
Ulrich Hommel: International University
Karoline Jung-Senssfelder: International University

A chapter in Risk Management, 2005, pp 631-650 from Springer

Abstract: Abstract In April 2001, E.ON AG announced the details of its pre-conditional cash offer for Powergen plc. Due to pending regulatory clearance in the USA, the UK and Europe as well as shareholder acceptance, the acquisition was not finalized until July 2002. This chapter identifies contingent currency risk exposures as a predominant concern in such cross-border acquisitions and develops an acquisition- related approach to managing them. Based on an exemplary risk management process, decision problems arising in the various phases of the acquisition are discussed and complemented with information on E.ON’s risk management policies actually adopted.

Keywords: Contingent Exposure; Risk Management; Cross-Border Acquisitions (search for similar items in EconPapers)
Date: 2005
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-540-26993-9_32

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DOI: 10.1007/3-540-26993-2_32

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