... of its colleague Safeway, Morrisons becomes the owner of more than 500 supermarkets and the forth largest supermarket group in Great-Britain. Research Design One of the principal ways in which merges are assessed is through the reaction of stock returns. Therefore, this essay aims to analyze how firm-specific events, here referring to the information associated with the merge between Wm Morrisons and Safeway Plc affect the stock returns. The hypothesis of the researcher of this paper is that once Morrisons is involved in the negotiation with Safeway about the acquisition it obtains a negative abnormal return. This study complements the analysis by examining the impact of each event individually with interpretation of the abnormal return the firm achieved. The cumulative abnormal return is also adopted to discuss the reaction of the market to the announcement relating to the takeover. After the discussion about the abnormal return in each event and the cumulative ...

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