Corporate Mergers and Takeovers
I always get happy and excited when the share price of the company I own goes up because of good mergers or takeovers. Last year 2006 was a year of mergers with so many corporate giants either merging or taking over other giants.
Usually such mergers or takeovers boost the stock price based on earnings speculation in future. That’s what happened to many stocks last year. This year is when we would see the results on such mergers. So a shrewd investor should always watch out for the stocks after the speculative rising of its value. I usually take the gains after a certain percent increase and wait for it to settle down before I buy it again. So I love mergers or takeovers from a share market aspect.
The other aspect of mergers or takeovers deals with the employees itself. There is always a potential for employees to be let go after such deals. On a personal front everybody hopes that the company they work for is not taken over by somebody else even if it a big boost for the company. Usually such mergers are announced out of the blue and nobody likes a drastic change in their life suddenly.
What do you think?
2 comments:
What I have seen with job loss or lay off is that life does not stop. Time is a great healer and people usually move on after the initial shock. For some people it is the beginning of a better career/better life. I used to work for this company where some of my friends got laid off. Most of them ended up with better jobs. A few switched careers. They are all working now.
Yes, the hardest of M&A is the human factor. Especially employee's uncertainity about their new role, job security and company's future plans. It is sad that most companies don't even let their employees know before announcing to the press.
One of my classmates who used to work for Gillette mentioned she found out about the company's merger with P&G when they showed on the news that Gillette stadium might get a name change!( this stadium's where the local sports team NE patriots play)
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