Merger and Acquisition of Indian Banks

8911 Words Feb 22nd, 2010 36 Pages
PROJECT REPORT

ON

“MERGERS AND ACQUISITIONS OF BANKS”

EXECUTIVE SUMMARY

Mergers and acquisitions are one of the popular topics in business today, since they characterize the new economy: pressure of global competition, development of technology and disappearance of country boundaries. The purpose of this project is to study how mergers and acquisitions affect the share prices of the acquirer bank. We have taken up seven banks as a part of our case study analysis and have made an attempt to study the share price pattern of Transferee Banks before and after merger on a monthly basis by drawing out graphs and using correlation and regression.

TABLE OF CONTENTS

1. Introduction …………………………………………………………………7 2. Research
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Utilize the acquiring company’s expertise in marketing, |I |Mergers are a way managers obtain and exploit |
|production, or other areas within the acquired company | |economies of scale and scope |
|2. Create economies of scale by related capacity expansion | | |
|3. Utilize the acquired company’s personnel, skills, or | | |
|technology in other operations of the acquiring company | | |
|4. Accelerate growth or reduce risks and costs in a particular|II |Mergers are a way managers deal with critical and |
|industry in which the acquiring company has a strength such as| |ongoing interdependencies with others in a firm’s |
|executive wisdom | |environment |
|5. Utilize interlocking and mutually stimulating
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