Table Of Content

The Management of Mergers and Acquisitions Philippe Very Professor of Strategic Management EDHEC Business School Translated from French by John Cooke EDHEC Business School The Management of Mergers and Acquisitions The Management of Mergers and Acquisitions Philippe Very Professor of Strategic Management EDHEC Business School Translated from French by John Cooke EDHEC Business School ThisEnglishlanguageeditioncopyright#2004JohnWiley&SonsLtd,TheAtrium, SouthernGate,Chichester,WestSussex PO198SQ,England Telephone(þ44)1243779777 Email(forordersandcustomerserviceenquiries):[email protected] VisitourHomePageonwww.wileyeurope.comorwww.wiley.com TranslatedfromtheoriginalFrenchedition,DesFusionsetdesHommes,copyright#2001 Editionsd’Organisation,Paris,byJohnCooke. AllRightsReserved.Nopartofthispublicationmaybereproduced,storedinaretrieval systemortransmittedinanyformorbyanymeans,electronic,mechanical,photocopying, recording,scanningorotherwise,exceptunderthetermsoftheCopyright,Designsand PatentsAct1988orunderthetermsofalicenceissuedbytheCopyrightLicensingAgency Ltd,90TottenhamCourtRoad,LondonW1T4LP,UK,withoutthepermissioninwritingof thePublisher.RequeststothePublishershouldbeaddressedtothePermissionsDepartment, JohnWiley&SonsLtd,TheAtrium,SouthernGate,Chichester,WestSussexPO198SQ, England,[email protected],orfaxedto(þ44)1243770620. Designationsusedbycompaniestodistinguishtheirproductsareoftenclaimedas trademarks.Allbrandnamesandproductnamesusedinthisbookaretradenames,service marks,trademarksorregisteredtrademarksoftheirrespectiveowners.ThePublisherisnot associatedwithanyproductorvendormentionedinthisbook. Thispublicationisdesignedtoprovideaccurateandauthoritativeinformationinregardto thesubjectmattercovered.ItissoldontheunderstandingthatthePublisherisnotengaged inrenderingprofessionalservices.Ifprofessionaladviceorotherexpertassistanceis required,theservicesofacompetentprofessionalshouldbesought. OtherWileyEditorialOffices JohnWiley&SonsInc.,111RiverStreet,Hoboken,NJ07030,USA Jossey-Bass,989MarketStreet,SanFrancisco,CA94103-1741,USA Wiley-VCHVerlagGmbH,Boschstr.12,D-69469Weinheim,Germany JohnWiley&SonsAustraliaLtd,33ParkRoad,Milton,Queensland4064,Australia JohnWiley&Sons(Asia)PteLtd,2ClementiLoop#02-01,JinXingDistripark,Singapore129809 JohnWiley&SonsCanadaLtd,22WorcesterRoad,Etobicoke,Ontario,CanadaM9W1L1 Wileyalsopublishesitsbooksinavarietyofelectronicformats.Somecontentthatappears inprintmaynotbeavailableinelectronicbooks. BritishLibraryCataloguinginPublicationData AcataloguerecordforthisbookisavailablefromtheBritishLibrary ISBN0-470-02458-5 ProjectmanagementbyOriginator,GtYarmouth,Norfolk (typesetin10/12ptUtopia) PrintedandboundinGreatBritainbyTJInternationalLtd,Padstow,Cornwall Thisbookisprintedonacid-freepaperresponsiblymanufacturedfromsustainableforestry inwhichatleasttwotreesareplantedforeachoneusedforpaperproduction. To Roland Calori, my guide, my friend Contents List of ﬁgures and tables xi Preface xiii Introduction xv 1 M&A failure as a management problem 1 1.1 Story: Flight NA3365 to Morkousk 1 1.2 A failure ... but not a calculated one! 10 The failure rate associated with acquisitions 10 Apparent problems usually associated with failure 11 Flight NA3365 to Morkousk 13 The real reasons for failure 14 Five characteristics that combine to create a problem of management 17 Summary 19 2 Ego and geo: Two motivations for acquiring 21 2.1 Story: To conquer the world 21 2.2 Combining ego and geo ... 34 Is there a problem of dyslexia? 35 Personal interest and the interest of the group 35 Variety of geostrategic objectives 37