INCREASED CONCENTRATION

• Media (10 big companies)

• Oil (recreation of Standard Oil)

• Telecommunication (recreation AT&T)

• Utilities

• Defense & Aircraft

• Health (HCA)

National Bureau of Economic research (Nelson), 1895-1920; FTC & TemporaryNational Economic committee, 1921-1968 from Antitrust law and Economics Review p. 26“Antitrust and the “merger-Wave’ Phenomenon: A Failure of Public Policy by samuel R. Reid

MAJOR MERGER WAVES

1895-1904 Horizontal merger wave (US Steel, Std. Oil). 157 business consolidations. 75% involved 40% or more of their markets. Capital intensive, large scale pdcn. Falling transport cost, Tech change, Managerial improvements, Limited liability1920-1929 Vertical Merger wave (AT&T, Utilities, Weyerhauser)1960-1968 Conglomerate Merger wave (LTV, ITT (Geneen))1982-1989 Predator's Ball LBO (RJ Reynolds,S&Ls). Milken, Boesky .1992-1999-IPOs2002-2009--LBOs and IPOs

Mergers and Acquisitions 1968-2000

0

2000

4000

6000

8000

10000

120001968

1970

1972

1974

1976

1978

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

Number Net merger and acquisitions announcements

of # of transactions with purchase price disclosed

Merger and Acquisitions Reported

0

1000

2000

3000

4000

5000

6000

year

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

Pautler. Evidence on mergers and Acquisitions FTC 2001

M&A and the GDP

-80.00%

-60.00%

-40.00%

-20.00%

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

1930

1933

1936

1939

1942

1945

1948

1951

1954

1957

1960

1963

1966

1969

1972

1975

1978

1981

1984

1987

1990

1993

1996

1999

%dGDPreal %dM&A

http://jobfunctions.bnet.com/presentation.aspx?&authId=5GXmd5dupvM22VMgG73itBRb3Fa0S+sODrvtARVXq36UWSLPu8wYL+0sw3apMjA6&docid=93009&promo=110000

villanova universitymergers and acquisitions explanation.

THE ALGEBRA OF GROWTH THROUGH MERGER

REUTERS

Published: April 24, 1990LEAD: A battered junk bond market and other financing difficulties contributed to a 13 percent drop in proposed mergers and acquisitions in the first quarter, according to a survey released today by W. T. Grimm & Company, a unit of Merrill Lynch. A battered junk bond market and other financing difficulties contributed to a 13 percent drop in proposed mergers and acquisitions in the first quarter, according to a survey released today by W. T. Grimm & Company, a unit of Merrill Lynch. The number of deals declined to 597, from 685, and the total value of announced deals that revealed a purchase price fell 38 percent, to $34.3 billion, from $55 billion a year ago, the survey said. The total value of the 10 largest deals was $15.7 billion, which is less than the single largest deal in 1989 - the SmithKline Beckman Corporation's merger with Beecham Group P.L.C. for $16.1 billion.

http://query.nytimes.com/gst/fullpage.html?res=9C0CE0D9173BF937A15757C0A966958260

Merger Deals Fall 13%

WSJ, Nov 29, 1999 p.c1