... Clearly, the most recent wave of mergers has involved significantly larger companies. The involvement of non-UK companies in the acquisition of UK operation is another striking feature of the latest wave. Of the 1505 UK acquisitions in 1989, 168 were by non-UK companies involving expenditure of £12.13 billion. Hence, non-UK companies accounted for approximately 11 per cent of acquisitions, or nearly 31 per cent if measured in terms of market value. In 1999, non-UK companies accounted for nearly 34 per cent of all acquisitions, or nearly 70 per cent in terms of market value. Acquisitions and Shareholder Wealth While the evidence cited above indicates significant macro-economic and capital market developments, the primary concern here is to understand the motivations behind the decision to acquire another firm. In principle, the matter is straightforward. The decision to acquire another company is simply an investment decision that can be treated in much the same way ...

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