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(focarelli, Panetta & Salleo, 2002) Shed Little Light On The Acquisition ...



(Focarelli, Panetta & Salleo, 2002) shed little light on the acquisition issues facing UK banks as it deals with Italian domestic market. Mergers seek to improve income from services (the bidder wants to offer its services to the clients of the target) but the increase is offset by higher staff costs but ROE improves because of the decrease in capital. Acquisitions aim to improve the loan portfolio acquired by the bank by reducing bad loans to overall loan ratio. Improved lending policies result in higher profits (consistent with Berger, Saunders, Scalise and Udell, 1998).
They do identify the banks most likely to take part in a merger or acquisition
All Italian M&A over the period 1985-1996

Expected outcomes
Implications for possible research findings
That the fit of the two banks is key to a successful acquisition or cross-border merger.
Select (Harvard style) bibliography indicating sources of material
Journals are listed by author, date, title of article, title of journal, part number, page numbers (beginning of article - end of article).
Augar P. The Death of Gentemanly Capitalism (London: Penguin 2000)
Berger A. N., Demsetz R.S. & Strahan P.E., 1999, ‘The Consolidation of the Financial Services Industry: Causes, Consequences and Implications for the Future', Journal of Banking and Finance, Vol. 23, No 2-4, pp. 135-94.
Chatterjee, S et al., 1992, ‘Cultural Differences and Shareholder Value in Related Mergers', Strategic Management Journal, Vol. 13, No. 5 pp. 319-34.
Cybo-Ottone A. & Murgia M. Mergers and Shareholder Wealth in European Banking. Journal of Banking and Finance 24 (2000), pp. 831-50
Hayes R.H. & Abernathy, W.J., 1980, Managing our way to economic decline, Harvard Business Review, Vol. 58, no. 4 (July-August), pp. 67-77.
Houston J.F. and Ryngaert, 1994, ‘The Overall Gains from Large Bank Mergers', Journal of Banking and Finance, Vol. 18, No. 6 pp. 1155-76.
Katz J.P., Simanek A. & Townsend J.B., January-February 1997, Corporate Mergers And Acquisitions: One More Wave To Consider, Business Horizons.
Kaplan R.S. and Norton D.P., 1992, ‘The Balanced Scorecard: Measures and Drive Performance,' Harvard Business Review, Vol. 70 No.1 pp. 71-80.
Lindblom T. & Von Koch C., October 2002, Cross-Border Bank Mergers and Acquisitions in the EU, The Service Industries Journal, Vol 22. No.4, pp. 41-72.
Milbourn T.T., Boot A.W.A., Thakor A.V., 1999, ‘Megamergers and Expanded Scope: Theories of Bank Size and Activity Diversity' Journal of Banking and Finance, Vol 23., No 2-4, pp. 195-214.
Mueller D.C., 1980, The Determinants and Effects of Merger Oelgeschlager, Gunn and Haines, Cambridge, Massachusetts.
Peristiani S., 1997, ‘Do Mergers Improve the X-Efficiency and Scale Efficiency of U.S. Banks? Evidence from the 1980s. Journal of Money, Credit and Banking, Vol.29, No. 3, pp.326-37.
Pilloff, S.J.


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