| | Studies consistently show mergers as more often reducing stock prices than elevating them. Why companies continue to do them remains debated among the researchers who study this topic. It seems to come down to CEOs showing they are "doing something" since "doing nothing" is politically unacceptable in-house even if "doing nothing" can be shown the most profitable path.
I cannot immediately cite the sources of this conclusion but I know we discussed it in several MBA classes.
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