Corporate Mergers and Finance: Patterns and Elements

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Running Head: FINANCE
Finance
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FINANCE
Corporate mergers have occurred in distinctive patterns over the years in the United
States since the late 18th century. In some season/ period, the merges were symbolized by both
less and major merge activities. Over the years most of the merges either went successful or
unsuccessful. In the history of the United States, five merges have been in existence with each
having its distinct elements. The first merge was from 1897 to 1907 while the second merge
wave occurred from 1916 to 1929.
Moreover, the rest three merges happened between 1965 and 2000. The fifth merge wave
marked the end of the existed merges which run for seven good years (Alexandridis, Mavrovitis
& Travlos, 2012). In early March 2011 is when Telkom AG took an acceptance of thirty-nine
billion United States dollars purchases and stock offers coming from AT&T Inc on behalf of T-
mobile in America. This merge was highly opposed by Bursor and fisher law firm (Baluch,
Burgess, Cohen, Kushi, Tucker, & Volkan, 2010). The law firm claimed that the main aim of the
merger was to force the customers of AT&T to file demands on arbitration with America
arbitration association which would be under the wave of Supreme Court judgment in the case of
AT&T mobility versus conception.
The fifth merge wave came to existence after the slump of economic in 1990 to late 1991.
Although the merge seemed strong the rate of formation was similar to that of the fourth one.
The fifth merge marked a very significant decline of the hostile takeover rates. Compared to the
successor merge the fifth merge wave had a reduced creation of supported debt merges. M&A
purchase method is used during the consolidation of companies. During the acquisition, the
absorber company seeking to purchase the other one in a latter situation the company obtains the
target company and pays through M&A method. The acquired companies shares and securities
are consolidated through stock for stock exchange or through a form of currency. Push down