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Department of Business Studies

MSc. in Finance

Authors:
Rikke Eriksen (Exam ID: 271339)
Louise M. Mller (Exam ID: 271313)

Advisor:
Jan Bartholdy

An empirical study of the value creation in Mergers and


Acquisitions
in relation to the strategic rationale
Focusing on acquiring companies located in the UK or Scandinavia

September 2008
Aarhus School of Business, University of Aarhus

Abstract
This thesis evaluates the effects of mergers and acquisitions upon the acquiring
company based on the underlying strategic rationale for the deal. The analysis is based
on both daily stock prices (analysis up to 1 year after the event) as well as on operating
measures (analysis up to 3 years after the event) in relation to UK and Scandinavian
based acquiring companies. An event study approach is taken to evaluate the abnormal
performance following a merger or an acquisition. Both a parametric t-test as well as
different non-parametric tests are conducted and the empirical results indicate that the
highest amount of power and reliability is attached to the non-parametric tests.
The main empirical results from the thesis in relation to the performance of the
acquiring firms are that in most cases it is not possible to detect any abnormal
performance. This indicates that it is not possible to find support in favour of a positive
reaction or effect of a merger. However, in cases when an abnormal performance is
detected it is mostly negative indicating that the acquiring company looses value. In the
shortest period of time around the event day the stock prices show some evidence in
favour of a positive reaction in the stock prices in response to the deal.
In relation to the investigation of differences between the different strategies it appears
that it is not possible to conclude that all of the strategies differ. However, some
indication of one strategy outperforming the remaining strategies as well as one strategy
being outperformed by the others was detected from the analyses of differences.

An empirical study of the value creation in M&A in relation to the strategic rationale

Table of contents
1. Introduction ................................................................................................................ 1
1.1. Research question ................................................................................................ 2
1.2. Definitions and clarifications .............................................................................. 3
1.3. Delimitation .......................................................................................................... 3
1.4. Evaluation of sources........................................................................................... 4
2. Research method ........................................................................................................ 5
2.1. Measuring performance based on stock prices ................................................. 5
2.2. Measuring performance based on operating measures ................................... 8
2.3. Preparation and selection of data..................................................................... 10
3. Results from previous empirical studies on value creation in M&A ................... 13
4. Event studies ............................................................................................................. 15
5. Measuring abnormal performance based on stock prices .................................... 16
5.1. Estimation period, event day and event window ............................................ 16
5.2. Creating a benchmark for the normal performance ................................... 17
5.3. Choice of tests Parametric or Non-parametric ............................................ 18
5.3.1. The parametric t-test ..................................................................................... 19
5.3.2. Non-parametric tests ..................................................................................... 20
6. Measuring abnormal operating performance........................................................ 24
6.1. Definition and determination of the selected operating figures .................... 24
6.1.1. Return on assets based on EBIT and EBITDA ......................................... 25
6.1.2. Return on sales based on EBIT and EBITDA ........................................... 26
6.1.3. Cash flow return on assets ............................................................................ 26
6.1.4. Tobins Q ...................................................................................................... 27
6.2. Event day, event window and estimation period ............................................ 27
6.3. Creating a benchmark - performance based .................................................. 28
6.4. Specification of statistical tests Parametric and non-parametric tests ...... 29
6.4.1. Parametric t-test for abnormal operating performance ................................. 29
6.4.2. Wilcoxon Signed Rank test for abnormal operating performance ............ 30
7. Test for differences between the strategies............................................................. 31
8. Overview and discussion of the research approach and the selected tests .......... 32
8.1. Overview of the research approach ................................................................. 32
8.2. Discussion of choice of research approach ...................................................... 33

An empirical study of the value creation in M&A in relation to the strategic rationale

9. Descriptive statistics ................................................................................................. 37


9.1. Description of the strategies.............................................................................. 38
9.2. Descriptive statistics Daily stock prices ........................................................ 39
9.3. Descriptive statistics Accounting figures ...................................................... 40
10. Hypotheses and expectation in relation to the empirical results ........................ 41
11. Empirical evidence abnormal stock price performance .................................. 45
11.1. Empirical results parametric t-test ............................................................. 45
11.1.1. Robustness and power of the parametric t-test ........................................... 48
11.2. Empirical results the non-parametric tests ................................................ 51
11.2.1. Empirical results of the Rank test ............................................................... 51
11.2.2. Empirical results of the Sign test ................................................................ 52
11.2.3. Empirical results of the Generalized Sign test ........................................... 54
11.3. Examining differences between strategies ..................................................... 55
11.4. Summery of the empirical results in relation to stock prices ...................... 58
12. Empirical evidence abnormal operating performance .................................... 60
12.1. Presentation of empirical results .................................................................... 60
12.1.1. Return on assets EBIT ............................................................................. 60
12.1.2. Return on assets EBITDA ....................................................................... 64
12.1.3. Return on sales - EBIT ............................................................................... 68
12.1.4. Return on sales EBITDA ......................................................................... 71
12.1.5. Cash Flow Return on assets ........................................................................ 75
12.1.6. Tobins Q .................................................................................................... 78
12.2. Examination of differences between strategies based on operating
performance .............................................................................................................. 82
12.3. Summary of the empirical results in relation to operating performance... 86
13. Evaluation of the data, the research approach, and the empirical results ........ 88
14. Conclusion ............................................................................................................... 90
15. A final perspective on value creation in M&A..................................................... 94
16. Bibliography ............................................................................................................ 96

An empirical study of the value creation in M&A in relation to the strategic rationale

1. Introduction
Due to increased competition and increased globalization the economic environment
has changed in recent years and in light of this, the challenges a company faces have
become larger and more demanding. One result of this has been an increase in the
number of acquisitions both within and across borders. For companies to stay at pace
with competitors growth through acquisitions has become increasingly important and
has at least partly replaced organic growth. The number of mergers and acquisitions as
well as the value of these transactions has risen significantly through time. However, the
increase in the M&A activity is not linear, in fact it moves up and down over time with
an overall rising tendency. This phenomenon is referred to as merger waves1 in fact
research documents periods with obvious increases in activity. These merger waves
influence the business environment and in conducting analysis of M&A activity
possible merger waves within the period in question should be kept in mind.
In research literature attention has been paid to M&A transactions and several studies
have been conducted in order to understand and determine the trends and the
characteristics in this field. The overall motive for the acquirer is value creation and in
the light of increasing M&A activity it is relevant to examine whether or not value is
created. One branch of research has focused on whether or not value is created for the
acquiring firm in relation to mergers and acquisitions. No overall consensus exists that
unanimously documents whether or not value is created for the acquiring firm. Moeller
et al. (2005) have concluded that value is actually destroyed when engaging in
acquisitions. The reason for this conclusion is imputed to the fact that the largest M&As
are the ones experiencing massive losses. A part from the large loss deals the
remaining companies actually experience gains from M&A. The conclusions from this
paper are based on US companies and have not yet been fully explored on European
companies.
Companies engaging in mergers and acquisitions can be motivated by several different
objectives, some of the most obvious as presented by Sudarsanam (2003) are synergies,
increased growth, cost savings and increased efficiency. Apart from these more

Several research studies have focused upon M&A activity and have identified periods of increased
activity, which is referred to as merger waves (see Mulherin and Boone (2000) and Andrade et al.
(2001))

An empirical study of the value creation in M&A in relation to the strategic rationale

apparent motives might also include decreased transaction costs, increased knowledge
or so forth. Besides the motive for a company to engage in mergers or acquisitions the
type of industry in which the company operates also affect the type of merger. The
motive for the acquisition in the case of a mature industry could be far different from
the motive dominating an immature industry. In paying attention to the motive that
drives the acquisition and the industry in which the acquirer operates emphasize the
importance of the strategic rationale for a merger or an acquisition.
It is widely recognized that it is decisive for a company to set up a strategy in order to
meet the challenges it faces due to a fierce competition and a quickly changing
environment. The strategy a company chooses to follow should be in line with an
overall goal of value creation. A decision to expand through acquisitions has to
correspond to the underlying strategy of the company. In line with this, the strategy or
the motivation behind an acquisition is according to Bower (2001) an important factor
in determining whether or not an acquisition becomes a success - meaning whether or
not value is created. In his study he distinguishes between five overall strategies, which
are examined based on US companies. The five strategies are referred to as: the
Overcapacity M&A, the Geographic Roll-up M&A, the Product or Market
Extension M&A, the M&A as R&D, and the Industry Convergence M&A.
1.1. Research question
The findings from the two mentioned articles are the main motivators for this thesis and
the ambition of the thesis is thus to combine the two observations and apply them to
European companies in an analysis of value creation. In order to conduct this analysis
the following research question is posed:
Is it possible to detect abnormal performance in relation to a Merger or an Acquisition?
- And does abnormal performance differ between the different strategies/motives behind
the deal?
In order to ensure the debt of the thesis the overall research question is analyzed in
connection to the following sub questions:

Is value created in general based on the entire sample of firms?

When looking at each strategy separately is value created within the strategies?

An empirical study of the value creation in M&A in relation to the strategic rationale

Is it possible to document a significant difference between the strategies?

Throughout the thesis the analyses are conducted in relation to both stock prices and
operating figures, which enables a focus upon short-term as well as long-term value
creation.
The purpose of this thesis is to detect value creation in mergers and acquisitions based
on the strategy motivating the transaction. Seeing that the thesis is mainly inspired by
the two observations mentioned above, it aims to document if value is created in
mergers and acquisitions in cases where the acquiring company is located in the UK or
Scandinavia.
1.2. Definitions and clarifications
The vocabulary and the research approach in this thesis are in line with existing
research in the field. Therefore no separate definitions are presented here except for a
clarification of what is meant by mergers and acquisitions.
The sample included in the thesis consists of both mergers and acquisitions, but no
distinction between the two types of deals is made in the analyses of value creation. A
specific merger or acquisition is referred to as a deal.
1.3. Delimitation
To conduct the analysis some delimitation has been made partly due to the scope of the
thesis, but also in relation to the available sources of information. The companies
included in the analysis were chosen based on some overall criteria in which the starting
point was a sample of 959 companies. In preparing this data and conducting the analysis
the sample was reduced somewhat. A specific deal was excluded in cases where no
information is available to document the strategy behind the deal. This is a necessary
exclusion due to the fact that the entire analysis is based on the strategy behind the deal
and thus it is a necessity to distinguish the motive for each deal.
To determine the underlying strategy some further delimitation have been made. In
cases where a subsidiary was acquired the deal was excluded. This was done in order to
maintain focus upon acquisitions of another company. In addition, some deals included
in the original sample of 959 companies were located outside the UK and Scandinavia
and these deals were also excluded in order to stay in line with the overall characteristic

An empirical study of the value creation in M&A in relation to the strategic rationale

of the data sampling focusing exclusively on acquiring companies situated in either


the UK or Scandinavia. Furthermore, the original sample included some deals that were
announced in 1999 or completed in 2005. These deals were also excluded from the
sample.
In order to perform the analyses stock prices or operating figures needed to be available.
To conduct the analysis based on stock prices at least 75 observations prior to the
announcement day were needed for a deal to be included. Furthermore, the sample only
consists of companies that in the relevant period were listed on a stock exchange in the
UK or Scandinavia, therefore, companies that was only listed elsewhere was excluded.
In the case of operating figures, deals were excluded if changes in the accounting year
were made during the period of analysis or if accounting figures in the year prior to the
event were unavailable. For a specific deal to be included all operating figures needed
not be available. Finally the benchmark was constructed based only upon those deals
included in the analysis of operating performance. This final delimitation is in particular
due to the scope and time available for the paper seeing that the data collection was a
very large and demanding task.
1.4. Evaluation of sources
The sources used in this thesis are primarily research papers, which are considered
appropriate for this type of thesis. In setting up the event study inspiration was sought in
previous literature, and it was attempted to choose methods that were well documented
and evaluated in previous work. In doing so the research approach is valid without
having to perform a simulation study of the approach.
Seeing that the approach is chosen in accordance with recommendations from previous
literature the different alternative approaches and models are not discussed in debt. The
reason for not including this type of discussion is primarily the limited scope of the
thesis as well as the consideration that basing the event study on the work of primarily
Brown and Warner (1985), Barber and Lyon (1996), MacKinlay (2001), and Bartholdy
et al. (2007) ensures a valid and reliable approach. Furthermore, the thesis will focus
more on the analysis and the actual results that can be drawn. Since the approach is well
specified and valid a comparison with other empirical work is possible.

An empirical study of the value creation in M&A in relation to the strategic rationale

2. Research method
As mentioned above, the starting point of this thesis is the two observations first,
value is destroyed in mergers and acquisitions based on a US sample of firms, and
second, the underlying strategy is a determinant for the success of a deal. These two
observations have served as inspiration in designing the research question for this
thesis. In order to examine if any value is created the event study methodology is
chosen as the research approach.
The event study methodology is applied to the analysis of both stock prices and
operating figures and both parametric and non-parametric tests are included. In the
following an elaboration of the research method is presented.
2.1. Measuring performance based on stock prices
In the analysis of performance based on stock prices, daily stock quotes are applied. The
analysis of stock prices is performed on five different time intervals (the 11 day event
window, 1 month, 3 months, 6 months and 1 year). The method chosen and the analysis
conducted are inspired by those methods applied in other research papers in particular
MacKinlay (1997) and Bartholdy et al. (2007), which in large also corresponds to
Brown and Warner (1985). Both parametric and non-parametric tests are conducted in
order to examine if value is created.
To perform an event study the first thing to do is to determine the event day, the event
window and the estimation period. In this thesis the event day is set to the day that the
announcement of the deal is published. The reason why the announcement day is
chosen as the event day instead of the completion day is the fact that stock prices are
expected to adjust immediately to new information - in this case news of an upcoming
merger or acquisition. The event window is the event day and five days before and after
the event day, thus 11 days in total or 5 days of the event. In determining the normal
performance of the companies an estimation period needs to be chosen. In this case the
estimation period consists of 250 days prior to the first day in the event window. The
estimation period is in line with the recommendations from Bartholdy et al. (2007). Due
to the fact that not all stocks trade multiple times a day or even daily, an adjustment for

An empirical study of the value creation in M&A in relation to the strategic rationale

thin trading is recommended. This is done by applying trade-to-trade returns to the


entire sample as recommended by Bartholdy et al. (2007).
To conduct the event study the abnormal return at each day in the estimation period and
the event window is calculated. The abnormal performance or in this case the abnormal
return (AR) is the difference between the actual return and the normal return. The
normal return is estimated by means of the market model. This model assumes that all
stocks perform equally to a market index adjusted by the risk associated with the stock.
In estimating the normal return the actual return of the company is regressed on the
market index and the parameters and are estimated. The main market index in the
country of the acquirer is chosen as the market index, these are FTSE 100, OMXS30,
OMXC20, OMXH25, OSEBX and OMXI15 for the UK, Sweden, Denmark, Finland,
Norway, and Iceland respectively. Since the aim of the thesis is to detect value creation
based on a sample of firms over a period of time an aggregation of the daily abnormal
returns is necessary. For this purpose the cumulative abnormal return (CAR) is
calculated both over time and across securities.
In relation to testing for abnormal performance by means of stock prices the following
statistical tests are performed:

Parametric t-test

Non-parametric tests:
o Rank test
o Sign test
o Generalized Sign test

In the parametric t-test the null hypothesis of no abnormal performance is tested by


means of whether or not the average CAR is significantly different from zero. This
parametric t-test is conducted for the entire sample as a whole and also for each of the
strategies. A parametric test is subject to some assumptions that might influence the
robustness of the results. The assumptions are presented in section 5.3.1.
The main advantage of non-parametric tests is the fact that no assumptions are attached
and the results are robust regardless of possible problems in relation to the parametric
test. According to Cowan (1992) another important motive for including non-parametric
tests is the fact that when thin trading is present in the sample, violation of the

An empirical study of the value creation in M&A in relation to the strategic rationale

assumptions that characterize the parametric test is more likely and thus non-parametric
tests are justified.
The Rank test conducted in this thesis is based upon Corrado (1989). In the Rank test all
abnormal returns for each security in the estimation period and in the period of analysis
are ranked with the lowest rank corresponding to the lowest abnormal return and the
highest rank the highest abnormal return.2 The expected rank of the event day is the
median rank plus 0.5. In order to test for abnormal performance, under the null
hypothesis it is tested if the expected rank is equal to the rank at the event day.
The Sign test is conducted in line with Corrado and Zivney (1992). The Sign test is
based upon the assumption that the probability of observing a negative or a positive
abnormal return is the same - that is 0.5. In performing the test the sign for each daily
abnormal return is traced which is done by first obtaining the median abnormal return
for each security and afterwards for each day in the sample the sign is obtained by
subtracting the median abnormal return from the actual abnormal return. If obtaining a
positive sign the observation is given the value 1, a negative sign is given the value -1
and finally in cases where the actual abnormal return is equal to the median abnormal
return the observation is given the value 0. Under the null hypothesis the probability of
observing a positive cumulative abnormal return is the same as observing a negative
abnormal return.
The Generalized Sign test is based on Cowan (1992). The main difference from the Sign
test included in this thesis is that in the Generalized Sign test, the probability of
observing a negative or a positive abnormal return is estimated based on the actual
returns observed in the estimation period. Thus in conducting the Generalized Sign test,
the probability of observing a positive abnormal return around the event day is
compared to the probability of a positive abnormal return in a period unaffected by the
event (the estimation period). Under the null hypothesis of no abnormal performance
the number of securities with positive abnormal returns in the event window is equal to
the number that is expected in the absence of an event.
After having performed the parametric and non-parametric tests for abnormal
performance a F-test is performed to determine if any differences between the strategies

In case of the event period being analyzed the estimation period and the event window consist of 261
abnormal returns. These are ranked from 1 to 261.

An empirical study of the value creation in M&A in relation to the strategic rationale

can be traced. The F-test indicates if a difference is detected, however, it does not
determine where the difference is observed. Therefore, three pair wise difference tests
are also concluded, that is the Fishers Least Significant Difference (LSD) method, the
Bonferroni adjustments to LSD method, and the Tukey Multiple Comparison Method.
All tests for abnormal stock price performance are conducted for each strategy as well
as for the total sample. A significance level of 5% is applied; however, tests that yield
significant results with a 10% significance level are also commented.
2.2. Measuring performance based on operating measures
The analysis of operating performance is conducted in line with the method specified in
Barber and Lyon (1996). In the analysis of performance based on accounting figures six
operating measures Return on assets (ROA) based on both EBIT and EBITDA, return
on sales (ROS) based on both EBIT and EBITDA, cash flow return on assets and
Tobins Q - are tested in order to detect any abnormal performance in the sample. To
test for abnormal operating performance the following tests are applied:

Parametric t-test

Non-parametric test
o Wilcoxon Signed Rank test

To observe any abnormal performance a measure for the normal performance is


constructed - in this case a benchmark for each security is created as the measure for
normal performance. The benchmark is constructed on the basis of the ROA in the year
prior to the event. For each deal within each year the ROA is observed and a benchmark
group is established based on all securities with a ROA of 10% of the ROA in
question. The median observation from the benchmark group is observed and applied as
the benchmark. The benchmark group is kept constant throughout the analysis and a
benchmark for each security, for each operating figure and in each year is observed as
the median observation in the benchmark group. If no observations fall inside the 10%
of the ROA a benchmark is obtained as the median between the observation itself and
the security with an ROA the closest to observation in question.
After constructing the benchmark any abnormal performance is detected in the
following way. The performance of each company is measured as the difference
between accounting figures in two years and in the same way, the performance of the

An empirical study of the value creation in M&A in relation to the strategic rationale

benchmark is the difference between the benchmark corresponding to the accounting


figures in question in the same two years. Finally the abnormal performance is the
difference between these two differences. The tests for abnormal operating performance
are performed in the event year and the three years following the event. Abnormal
performance is in all cases the difference between the performance in the year prior to
the event and the year in question. The event year is determined as the accounting year
in which the transaction is completed.
The parametric t-test that is performed to detect abnormal operating performance is in
line with the parametric test described above regarding stock prices. The main
difference is the construction of the normal performance, which in this case is based on
a benchmark as described above. The null hypothesis in this t-test is zero abnormal
performance, which corresponds to the average cumulative abnormal performance
being equal to zero. In analysing abnormal performance based on operating figures a
potential problem with extreme observations (outliers) may influence the test.
According to Barber and Lyon (1996) this potential problem can be overcome by
applying winsorized data in which extreme observations that fall outside the 1st and 99th
percentiles are replaced by the 1st and 99th percentile respectively.
The non-parametric test of performance Wilcoxon Signed Rank test - is constructed in
line with the method applied in Wilcoxon (1945) and Lowry (1999-2008). First, the
sign of the abnormal performance for each security is determined. Second, the
observations are ranked regardless of their sign as the absolute values of the abnormal
performance. The signs are giving back to the ranks in order to test if the sum of the
positive ranks is the same as the sum of the negative ranks. In this case the null
hypothesis is that the sum of both positive and negative ranks is zero in which case no
abnormal performance is detected. The null hypothesis is tested by means of the
standard normal distribution.
The tests specified above are conducted upon the entire sample of companies as a whole
as well as upon each strategy. A significance level of 5% is applied; however, tests that
yield significant result with a 10% significance level are also commented.

An empirical study of the value creation in M&A in relation to the strategic rationale

2.3. Preparation and selection of data


When performing an event study, the selection and preparation of the data is extremely
important, therefore, the next section is an elaboration on the collection of the sample
on which the analysis is performed. The database Zephyr was used to select the
overall sample. It is a database that contains information about deals in relation to
company transactions. By means of the information provided by Zephyr a crude
sample based on the following criteria was selected:
1) The acquiring company was based in either the UK or Scandinavia (Denmark,
Finland, Iceland, Norway, and Sweden) a criteria set up in order for the thesis to
possibly serve as a counterpart to analysis performed on US data.
2) For a deal to be included the announcement date and the completion date should be
in an interval from the beginning of 2000 to the end of 2004 this criteria was set up to
ensure the most recent data in which a three year post event period was available.
3) A deal value larger than EUR 75mio. (Only deals with an available actual deal value
are included). The smallest deals were excluded by this criterion which was set up as a
response to a presumption that with respect to the smallest deals it would be difficult to
obtain adequate documentation for the chosen strategy.
4) Only Mergers and Acquisitions were included in the sample.
5) The current deal status should be completed.
The crude selection above yielded a sample of 1194 deals. The deals in which the
acquiring company after completion had an ownership share of the target of less than
97,5% or an ownership share of more than 20% of the target prior to the deal were
excluded from the sample which was reduced to 959 deals.
The next step in preparing for the event study analysis was to sort the 959 deals based
on the strategic rationale. The sample is divided into the following six strategies:

The Overcapacity M&A (Overcapacity)

The Geographic Roll-up M&A (Geographic)

The Market Extension M&A (Market)

The Product Extension M&A (Product)


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An empirical study of the value creation in M&A in relation to the strategic rationale

The M&A as R&D (R&D)

The Industry Convergence M&A (Convergence)

The motivation for this division is Bower (2001), however, he only operates with five
different strategies where The Product Extension M&A and The Market Extension
M&A are one strategy Product or Market Extension M&A (Product + Market). The
rationale for dividing this strategy is a presumption that the result from Product is
potentially different than that of Market. In order to keep this research in line with
previous research the tests are also conducted for the combined strategy. The
characteristics for each strategy are in line with those described in Bower (2001) and the
overall criteria will be presented later on in section 9.1.
In determining the underlying strategy behind each transaction the rationale or the
motivation for the transaction were determined based on different sources of
information web-pages, articles, annual reports, press releases etc. If documentation
for the strategy of a specific deal was not available the transaction was excluded from
the sample. For each deal with a documented strategy the stock prices and the
accounting figures was collected from Datastream and Amadeus/Orbis In order for
a transaction to be included either stock prices or accounting figures had to be available,
thus in cases when neither was available the particular deal was excluded from the
sample. Seeing that only stock prices or accounting figures are a requirement the final
sample for each of the two analyses are not the same. In case of the analyses performed
based on stock prices the final sample consists of 410 deals and the sample for the
analyses of operating performance consists of 389 deals. The documentation for the
chosen strategy is submitted in appendix A.
From Datastream a time series of daily stock prices is collected for each deal
containing quotes in the interval ranging from 250 days before and until one year after
the announcement day. The time series is adjusted in order to exclude holidays from the
sample in thereby only actual possible trading days are included. Due to thin trading a
stock need to be traded at least 30 days of the 250 days in the estimation period in order
to be included. The choice of a minimum of 30 days is made to ensure the power of the
estimation model. To perform the analyses the data for the estimation period needs to be
available; however, in some cases the acquiring companies stock is not available in the

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An empirical study of the value creation in M&A in relation to the strategic rationale

entire period of analysis. The deal is included anyway and the analyses are performed
only on the period available.
From Amadeus/Orbis accounting figures for each deal is collected from a year
before the transaction and until three years after the transaction, and in addition Total
Assets are collected two years before the event due to the construction of the
performance measures. The accounting figures need not be available in all three years
after the transaction in order to be included.
All tests that are conducted in this thesis are carried out in Excel or SAS. The
preparation of the data is performed in Excel and the actual tests are conducted in SAS.
The reason for applying SAS in this thesis is the programs ability to process extensive
data. The analyses are performed by means of the IML procedure a matrix procedure
that facilitates work with complex data, where a procedure is repeated numerous
times. Throughout the thesis references to the relevant spreadsheets and codes is present
in the beginning of each section.
The remainder of this thesis is structured as follows. Section 3 is a description of the
main conclusion from previous studies in relation to value creation and M&A activity.
In section 4 to 8 the event study method is presented for both stock prices and operating
figures, and furthermore, the choice of research approach is discussion and evaluated. A
description of the data that is included in the analysis is presented in section 9. Section
10 presents the main hypotheses in relation to the analysis performed in this thesis. The
empirical results in relation to detecting abnormal stock price performance are present
in section 11, while section 12 presents the empirical results corresponding to the
abnormal operating performance. Finally, before the concluding remarks, section 13
consists of an evaluation of the research approach and an attempt to detect possible
pitfalls in relation to the empirical work in this thesis.

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An empirical study of the value creation in M&A in relation to the strategic rationale

3. Results from previous empirical studies on value creation in M&A


The aim for the companies when engaging in a merger or an acquisition is primarily
value creation and according to Jensen and Ruback (1983), managers also compete to
gain control over as many company resources as possible and thereby create a better
market position for their company.
Harford (2005) concludes that economic, regulatory and technological factors have an
impact on the creation of a merger wave, which is defined as a cluster within the
M&A activity. One of the factors, which had a significant impact within the European
market, was the introduction of the Single Market in 1992 as well as the single currency
in 1999. These actions were followed by deregulations and privatization, which
increased the competition between European companies and lead to a prolonged bull
effect within the stock market. All these aspects affect the willingness of European
companies to engage in mergers and acquisitions. Two merger waves have been
detected, concerning the European market - a small one during 1987-1992 and another
one during 1995 to 2001. (Sudarsanam, 2003)
When examining the impact that a merger or an acquisition has on a company the
general result, according to MacKinlay (1997), is that the shareholders of the target
company gain large positive abnormal returns whereas the shareholders of the acquiring
company gain close to zero abnormal return. This result if found by use of either the
daily stock prices or the accounting figures. Jensen and Ruback (1983) used the stock
data and divided the shareholders into two groups and concluded that the shareholders
of the target company gained abnormal performance and as well did the shareholders of
the acquiring company when analyzing the impact in the short-run one month around
the announcement. Loderer and Martin (1990) supported this conclusion. They
examined the abnormal returns within an interval of 6 days around the announcement
day and did also conclude that the overall result was a minor positive abnormal return.
Loughran and Vijh (1997) examined the long-term abnormal return and concluded a
loss in value seen from the perspective of the acquiring company. Both Agrawal et al.
(1992) and Loderer and Martin (1992) also documented negative abnormal performance
in relation to the acquiring company concerning the long-term abnormal performance.

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The studies mentioned are all conducted based on US companies and within the period
of 1962 to 1987. However, Franks & Harris (1989) and Goergen and Renneboog (2004)
documented that also in the UK, positive abnormal returns are present in the short-run.
The expectation of negative abnormal returns in the long-run in the UK market was
supported by Franks & Harris (1989) and Baker and Limmack (2002).
The analyses conducted by means of analyzing the abnormal operating performance are
divided into two groups those using the earning based measures and those using cash
flow based figures. Ravenscraft and Scherer (1987) used both approaches and
concluded that when measuring the performance by use of accounting profitability a
decline in wealth was detected, whereas when basing the analysis on cash flow no
decline was found which was supported by Ghosh (2001). Meeks (1977) also
documented a decline in the UK company value when measuring the performance by
means of accounting profitability figures. Manson et al. (1994) use the cash flow
performance measure and document an improved performance within the UK
companies after a merger or an acquisition.
Investments in R&D are considered to be a management or an investment decision and
not a decision to raise capital and are often not publicly announced as a repurchase of
stocks or a merger, whereas it often is not detected before the financial reports are
published. Daniel and Timan (2001) argue that due to the fact, that R&D investments
are intangible assets, investors find it hard to process such information whereas the
market takes time to incorporate the value of such an investment, which supports the
statement that the stock market does not incorporate the correct value of an R&D
investment in the short run presented by Eberhard et al. (2004). Furthermore, they argue
that the positive abnormal operational performance, due to the increase in R&D, can be
detected in the long run.
Based on the studies presented above it seems likely to detect the same tendencies
within the British and the Scandinavian companies included in this thesis.

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4. Event studies
Ball and Brown (1968) and Fama et al. (1969) introduced the event study methodology
that is essentially used today and it has become the preferred method when measuring
performance induced by an event. The notation event study methodology has come to
refer to different procedures for estimating abnormal returns. Examples of such events
are earnings announcements, issues of new debt, macroeconomic announcements or
acquisitions. In an event study the objective is to measure the effect of a specific event
upon the value of the firm - this can be measured by the change in stock prices. One
advantage of event studies is that the methodology is applicable for various purposes
and it is fairly simple to implement. Since the early literature about event studies was
published by in particular Brown and Warner (1980, 1985) the application of the event
study methodology have extended and these papers have inspired the main part of the
research literature that have been published in recent years.
Seeing that an event study is an examination of the effects of a certain event upon the
value of the firm, the first thing to do is to determine what is meant by an event in this
thesis the event is defined as the time of the announcement of a merger or an
acquisition. In order to detect if any value is created as a result of the event it is
necessary to detect abnormal performance. To detect abnormal performance a measure
for the normal performance needs to be constructed. The normal performance is the
performance that would be expected in the absence of an event. In order to perform a
test trying to detect abnormal performance by means of an event study attention must be
paid to the Efficient Markets Hypothesis (EMH). According to Fama (1970) the EMH
is available in three forms - Weak, semi-strong and strong - depending on how
information is incorporated into stock prices. When assuming the weak form, it is
expected that all historical information be reflected in the stock prices. The semi-strong
form assumes that all public available information is incorporated into the stock prices
and lastly, the strong form expects all information public as well as private to be
incorporated into the stock prices.
Elton et al. (2003) as well as Fama (1991) conclude that the financial markets are
efficient and it is not possible to consistently earn an abnormal return, because all
available information is incorporated into the security prices immediately.

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5. Measuring abnormal performance based on stock prices


The description of the event study procedure for stock prices is outlined in the following
way: First, a definition and a determination of the estimation period, the event day and
the event window are presented. Second, the expected or normal return and afterwards
the abnormal return is defined and estimated, and finally the tests for abnormal
performance are presented.
5.1. Estimation period, event day and event window

When setting up an event study it is important to consider the choice of estimation


period, and event window (presented in figure 5.1). The estimation window is the
period over which the market model is estimated. The estimation of the market model is
applied to determine the normal or expected return in the absence of an event. In order
for the market model to represent the normal return the estimation period has to be set
to a period that is ideally unaffected by any abnormality. In this event study the
estimation period is set to a 250-day period immediately prior to the first day in the
event window that is about a year of trading prior to the event window. Consistent
with MacKinlay (1997) it is generally recommended that the event window is excluded
from the estimation period in order to make sure that the event does not influence the
estimation of the market model. In prior research literature the length of the estimation
window varies but according to Armitage (1995), an estimation period of about 100days prior to the event window is sufficient though it is common to choose an
estimation period between 200 and 300 days.
In accordance to Dodd & Ruback (1977) the event day is set to the day of the
announcement of the deal and not the day the deal is completed. According to the
efficient market hypothesis new information will be incorporated in the stock prices

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immediately and therefore the announcement day3 is the day in which the stock prices
will react. The announcement day is registered from Zephyr, which is considered a
reliable source of information in relation to correctly determining the announcement
day. In fact the determination of the announcement day is critical in conducting an event
study, since this day is the reference day against which abnormal performance is
detected.
In expecting that the efficient markets work perfectly it would have been sufficient to
restrain the event window to include only the event day. However, according to Elton et
al. (2003) the stock prices might react over time and not just on the event day. When
examining the time interval around an announcement it is common to detect abnormal
returns on both sides of the event day. The reason for abnormal returns appearing after
the announcement day can be due to either the fact that the announcement took place
too late in the day for the market to fully react or because it took time for the
information to be reflected in the stock price. Explanations for the abnormal returns
being present prior to the announcement day could be that before an announcement is
made a news release is posted to notify the public about the upcoming event. This
action would in an efficient market be reflected in the stock price prior to the actual
announcement. Another explanation could be that information about the announcement
is leaked to the market.
The above mentioned, supports the assumption of a semi-strong form of the efficient
market hypothesis and therefore, the event window in this thesis is set to 5 days of the
event day. Another reason for choosing an event window of 11 days is the fact when
thin trading occurs a security might not be traded on the announcement day and
therefore, if only including the event day it is likely that an effect will not be detected.
5.2. Creating a benchmark for the normal performance
Different alternatives are available when creating the benchmark to be used as a
measure for the normal performance (expected return) both statistical and economic
methods. In this thesis the measure for the normal return is created on the basis of the
market model. This choice of benchmark model is in line with recommendations from

The day a deal becomes publicly known.

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several research papers in particular Brown and Warner (1985), Barber and Lyon
(1997), and Bartholdy et al. (2007).
The market model is a statistical model that relates the return of a given security to the
return of a market portfolio and in estimating the normal return a linear regression is
estimated based on ordinary least squares (OLS). In this thesis the market portfolio is
chosen as the market index in the acquirers home country that is, as mentioned, FTSE
100, OMXS30, OMXH25, OMXC20, OMXI15, and OSEBX. The market model
assumes a linear relation between the security return and the market return and under
the presumption that a particular security correlates with the market index the expected
return is derived from the market index for the country in question. The market model is
estimated by use of the estimation period, and the parameters and from the OLS
estimation, are derived for each security. The abnormal return is afterwards calculated
as the difference between the actual return for the security and the expected return based
on the market model. These abnormal returns are calculated for each security at each
point in time over the period of analysis.
5.3. Choice of tests Parametric or Non-parametric
Event studies can as mentioned earlier be conducted by means of both parametric and
non-parametric tests. As concluded by MacKinlay (1997) and in accordance with most
research literature a test for abnormal returns induced by an event should consists of
both types of tests. A parametric test is a statistical test, which is subject to certain
assumptions in relation to the distribution. It is assumed that the abnormal returns are
normally distributed and if the assumptions hold the power of the parametric test is
large and outperforms the power of the non-parametric tests. Nevertheless, in cases
when the assumptions are violated the non-parametric test should be used instead of a
parametric test because the main advantage of non-parametric is that the distribution of
returns is not required to be normal. In addressing the potential problem of violation of
assumptions the use of both parametric and non-parametric tests allow the researcher to
verify the robustness of the parametric test.

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Abnormal performance based on stock prices is tested by means of the following four
tests:

Parametric t-test

Rank test (Corrado, 1989)

Sign test (Corrado and Zivney, 1992)

Generalized Sign test (Cowan, 1992)

These four tests are presented afterwards as well as the motivation for including the
specific test. Focus will be upon the most essential aspects of each test and not a
complete presentation of each aspect. The research approach in this thesis is in full
agreement with tests performed in other event studies trying to detect abnormal
performance in stock prices.
5.3.1. The parametric t-test
Overall parametric t-tests for abnormal performance are based on calculating the
difference between two means and if transferred to this specific research problem the
question is whether or not the abnormal returns are significantly different than zero.
Under the null hypothesis of no abnormal performance no difference between means
can be detected. In accordance with the research question the purpose of this thesis is
not an examination of the effects of M&A on a specific acquiring company, instead the
purpose is to examine whether or not an effect can be detected based on a group of
companies motivated by the same strategy. In order to examine the general effects of
mergers and acquisitions the abnormal returns calculated for each company at each
point in time need to be aggregated both through time and across companies. As
mentioned above, the abnormal return is calculated for each security at each point in
time by subtracting the estimated normal return from the actual return. In MacKinlay
(1997) this is calculated as: ARi,t = Ri,t + i - iRm,t4
In aggregating the abnormal returns it becomes possible to observe overall inferences
for the event. The aggregation of daily abnormal returns is measured by the cumulative
abnormal return (CAR). CAR is measured for each security as well as across securities
as an average cumulative abnormal return by summing the daily abnormal returns for
each security in the case of CAR and by summing the average daily abnormal returns

and are the parameters estimated in the market model

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across securities in the case of the average CAR. The null hypothesis of zero abnormal
returns, which corresponds to a CAR equal to zero, is tested based on a test statistic in
which the average CAR is divided by a measure for the variance of the average CAR.
The exact variance cannot be observed and so the variance needs to be estimated before
calculating the test statistic. Rejection of the null-hypothesis indicates that an abnormal
return is created as a response to the merger or the acquisition.
The parametric t-test is conducted for the entire sample as a whole as well as for the
individual strategies in an attempt to detect if value is created overall in the sample
chosen. Besides testing for value creation it is also of interest to detect differences
between the strategy performances and so an F-test is performed. The specification of
the test for differences is presented in section 7.
When performing a t-test four assumptions concerning the probability distribution of
the abnormal returns must hold in order to wholly rely on the results of the test. These
assumptions are: normally distributed and independently and identically distributed
abnormal returns, an expected value of the abnormal returns of zero, and a constant
variance (homoscedasticity). The normality assumption is critical in order to rely upon
the results of the parametric test. The assumptions are discussed and verified in the
analyses. If these assumptions are violated a non-parametric test should be use instead
in order to verify the robustness of the parametric test. In addition, another motive for
the non-parametric test stems from the fact that the parametric test is conducted on
accumulated average abnormal returns and it is possible that certain observations will
have had a large affect on the test statistic and therefore might have influenced the
conclusions.
5.3.2. Non-parametric tests
The main advantage of non-parametric tests is the fact that they are not subject to
restrictions and assumptions in relation to the distribution of returns and so the results
are reliable even on data where one or more assumptions are violated. A common
characteristic of these tests is the fact that the distribution is symmetric by construction.
Another important motive for including non-parametric tests is according to Maynes
and Rumsey (1993) that when thin trading is present in the sample, violation of the
assumptions underlying the parametric test is more likely and thus non-parametric tests
are justified.

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In performing the non-parametric test the procedure is the same as that of the parametric
test at least part of the way. The choice of event day, event window and estimation
period is exactly the same, which is also the case for the estimation of the market model
used as the measure of the normal return. However, the remainder of the tests are
performed differently, which will be elaborated in the following. The null hypothesis of
zero abnormal performance from the parametric test is also the one applied to the nonparametric tests, even though the null hypothesis is specified in a different way to
comply with test.
5.3.2.1. The Rank test
The Rank test is conducted in line with Corrado (1989). The main advantage of the
Rank test is that it is not restricted by any assumptions in relation to symmetry in the
distribution. To obtain the test statistic the Rank test is constructed in the following
way. All abnormal returns for each security in the estimation period and the period of
analysis are ranked with the rank 1 corresponding to the lowest abnormal return and the
highest rank corresponding to the highest abnormal return. According to Corrado and
Zivney (1992) the adjustment for thin trading is made by standardizing each rank by the
number of non-missing returns in the sample. The expected rank of the event day is the
median rank plus 0.5, however, after standardizing the expected or average rank is 0.5.
In order to test for abnormal performance the null hypothesis tests whether the expected
rank is equal to the rank at the event day meaning to test whether or not it equals 0.5.
In case of positive abnormal performance the rank of the event day would be larger than
the expected rank. The test statistic in the Rank test is calculated by dividing the
difference between the rank on the event day and the average rank with the standard
deviation of differences between actual ranks and average rank over the period of
interest.
The Rank test is considered to be more powerful than both the parametric t-test as well
as other non-parametric tests, which in particular is due to non-normality in the
distributions of return and misspecifications of the market model (abnormal returns).
Another important aspect or potential problem that is widely discussed in research is the
possibility of variance changes around the event day. In case of variance changes the
parametric t-test becomes less powerful and credible if these misspecifications are not

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addressed. One advantage of the Rank test presented by Corrado and Zivney (1992) is
the fact that it is immune to these misspecifications in relation to variance changes.
5.3.2.2. The Sign test
The Sign test is conducted in line with Corrado and Zivney (1992) and is based upon
the assumption that the probability of observing a negative or a positive abnormal return
is the same - that is 0.5. In performing the test the sign of the abnormal return on each
day is traced, which is done by first obtaining the median abnormal return for each
security in the sample and afterwards subtracting the median abnormal return from the
actual abnormal return and obtaining the sign of the difference. Subtracting the median
is in line with the assumption that the probability of observing a positive abnormal
return is 0.5. If obtaining a positive sign the observation is given the value 1, a negative
sign is given the value -1 and finally in cases where the actual abnormal return is equal
to the median abnormal return the observation is given the value 0. Under the null
hypothesis the probability of observing a positive cumulative abnormal return is the
same as observing a negative abnormal return. Under the null hypothesis of no
abnormal return the Sign test assesses the probability of a positive abnormal return
assuming that this probability is 50%. The test statistic of zero abnormal return on the
event day is calculated by means of the signs across the sample on the event day divided
by the standard deviation. If the test is correctly specified the amount of positive and
negative signs are according to Cowan (1992) the same in the absence of any abnormal
reaction to the event.
One advantage of this test is the fact that it is not restricted by any requirements in
relation to symmetry in the distribution in order for the test to be correctly specified.
However, assuming that the median of abnormal return is equal to zero might lead to
misspecification. This is overcome by calculating the sample median of abnormal return
as described above. In a simulation study Corrado and Zivney (1992) illustrate that the
power of the Sign test is larger than that of the parametric t-test due to lack of
symmetry requirements in the distributions. Furthermore, they illustrate that the Sign
test is dominated by Rank test.

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5.3.2.3. The Generalized Sign test


The Generalized Sign test is based on Cowan (1992). The main difference from the Sign
test described above is that in the Generalized Sign test the probability of observing a
negative or a positive abnormal return is based on the actual returns observed in the
estimation period across time and between securities. Thus in conducting the
Generalized Sign test the probability of observing a positive abnormal return around the
event day is compared to the probability of detecting a positive abnormal return in a
period unaffected by an event. By applying this estimated probability of a positive
abnormal return the possibility of asymmetry in the abnormal return distribution under
the null hypothesis is addressed. The composition of the Generalized Sign test is in
correspondence with the Sign test except for in creation of the median. This represents
the main improvement compared to the Sign test mentioned above. Under the null
hypothesis of no abnormal performance the number of securities with positive abnormal
returns in the event window is equal to the number that is expected in the absence of
abnormal performance.
The main advantage of the Generalized Sign test is that it takes into account the
possibility of asymmetry in the distributions of return. It becomes more powerful and
better specified than the Sign test. In comparing the Generalized Sign test to the Rank
test, the Generalized Sign becomes relatively more powerful as the event window
increases. According to Cowan (1992) the Generalized Sign test has more power than
the Rank test in relation to event windows of 11 days as is the case in this thesis.
However, in general and under ideal conditions the Rank test is the more powerful of
the two, while under less ideal conditions, e.g. in cases of thinly traded stocks, the
Generalized Sign becomes the most powerful.
In order to detect abnormal performance on a longer term this thesis also includes
analyses of operating performance. Again the event study methodology is applied,
however, in a different way than was the case of stock prices. In the following the
methodology for a study of operating performance is presented, as well as an
elaboration of the tests that will be conducted.

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6. Measuring abnormal operating performance


The basis for the evaluation of abnormal operating performance is the work by Barber
and Lyon (1996) in which they evaluate methods used in event studies based on
operating figures. In order to evaluate the effects of an event based on operating figures
in this case a merger or an acquisition - the actual performance of the acquiring
company needs to be compared to a measure of the performance in the absence of an
event. In case of stock prices the market model was used to estimate the normal return,
in case of operating performance the normal performance is represented by a
benchmark. In relation to operating performance the choice of performance measures,
benchmark and statistical test vary.
The presentation of the event study procedure in relation to operating figures is
organized as follows. First focus will be on the operating figures selected for the study.
Then the event day and the estimation period are defined. Afterwards the benchmark is
determined and finally the statistical tests are specified.
6.1. Definition and determination of the selected operating figures
In trying to detect the effects of an event upon the performance of the company the first
thing to do is to decide upon the operating figures to include in the event study. In this
case six performance measures have been selected:

Return on assets based on EBIT - ROA (EBIT)

Return on assets based on EBITDA ROA (EBITDA)

Return on sales based on EBIT ROS (EBIT)

Return on sales based on EBITDA ROS (EBITDA)

Cash Flow return on assets CF ROA

Tobins Q

The reason for including more than one operating figure is an attempt to provide more
debt to the conclusions of the event study and at the same time most performance
measures have some drawbacks and including more than one will help overcome these
potential drawbacks. In the following the selected operating figures will be presented in
more details.

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6.1.1. Return on assets based on EBIT and EBITDA


Return on assets (ROA) is the most widely used measure for detecting abnormal
operating performance. ROA is a profitability measure that represents a companys
ability to convert invested funds into earnings. The higher the ROA the more efficient is
the company in generating earnings. The smaller the ROA the more asset intense is the
company and so the more funds must be reinvested in order to continue to generate
earnings. In this thesis ROA is calculated as operating income divided by the average of
beginning and end of year book value of total assets.
Return on assets can be calculated by means of both EBIT and EBITDA, as is done in
this thesis. The most widely applied of the two is EBIT. Earnings before interest and tax
(EBIT) also known as operating income or operating profit is a measure for all profits
within the company before taking interest payments and income taxes into account. The
fact that ROA is unaffected by the capital structure of the company makes it possible to
compare ROA across industries and countries. This is why ROA is one of the most used
performance measures. Earnings before interest tax depreciation and amortization
(EBITDA) takes it a step further than EBIT by excluding the two non-cash items. In this
way EBITDA is made indifferent of choices of financing and of accounting decisions
and thus it is possible to compare across industries and across countries. However,
neither EBIT nor EBITDA is without drawbacks and thus focusing exclusively on either
of the two is not adequately.
According to Barber and Lyon (1996) the drawbacks in relation to ROA are: historic
cost, nonoperating assets, and earnings manipulation. Historic cost refers to the
fact that total assets is measured in historic costs while operating profit is measured in
current currency, a better measure would be to apply current cost or replacement cost of
total assets. Calculating ROA based on the total assets of the firm when in fact only the
operating assets should have been applied might understate the true profitability of the
operating assets, which is referred to as the nonoperating assets drawback. And
finally, since operating profit is an accrual-based accounting figure the managers might
over- or understate the reality in the direction most suitable to meet the goals. This is
referred to as earnings manipulation. The remaining performance measures in the
thesis are chosen to overcome these three potential drawbacks.

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6.1.2. Return on sales based on EBIT and EBITDA


Return on sales (ROS) is a measure intended to evaluate the operational efficiency of a
company and the margin expresses the profit that is produced per unit of sales. An
increasing ROS indicates that the company is becoming more efficient and at the same
time better prepared to resist periods of e.g. falling prices or increased competition,
which might result in deceasing sales. Return on sales is calculated as the operating
income divided by the sales of the year. The return on sales measure is constructed
based on both EBIT and EBITDA, and is thus made independent of both financing and
accounting decisions.
By including ROS, two of the three drawbacks in relation to ROA are addressed, that
are historic cost and nonoperating assets. The main advantage of return on sales is
the fact that it is constructed based on figures from the income statement, and so the
ratio is in current currency. As mentioned, the operating figures have drawbacks and as
such ROS is not free of disadvantages since it does not directly measure the
productivity of assets. It is possible to increase sales and operating income without
increasing the assets within the company, this is clearly an improvement of
productivity. However, if sales and operating income increase proportionally the return
on sales will not reflect increased productivity. (Barber and Lyon, 1996)
6.1.3. Cash flow return on assets
Cash flow return on assets measures the operating efficiency of a company in terms of
cash generated from operations per unit of total assets. It is calculated as the operating
cash flow divided by the average of beginning and end year book value of total assets.
Thus it shows how well the company generates cash from the investments in assets. A
higher cash flow return on assets is an indication of greater efficiency in generating cash
from investments in assets.
The main reason for including this operating measure in the analysis is the fact that it
overcomes the potential problem of earnings manipulation. In cases when managers
manipulate earnings to correspond better to their intentions a ROA measure will
become biased and less reliable. A cash flow return measure overcomes this problem.
However, this is a measure that fluctuates greatly with changes in cash flow. This is a
significant disadvantage seeing the cash flow changes greatly in relation to a merger or

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an acquisition and therefore it becomes difficult to compare the acquiring company to


companies unaffected by the acquisition.
6.1.4. Tobins Q
The final operating measure in this thesis is Tobins Q, a performance measure that
serves as a proxy for the growth opportunities within the company. Tobin (1969)
defined Tobins Q as the market value of assets divided by the replacement cost of
assets. The market value of assets is the market capitalisation defined as the number of
outstanding shares times the stock price on the last trading day of the year. The
replacement cost of assets is represented by the book value of total assets. If the value of
a company given by the financial markets equals the book value of the assets Tobins Q
is equal to 1. A Tobins Q between 0 and 1 indicates that the particular stock is
undervalued and a ratio higher than 1 is an indication of an overvalued stock. Lang et
al. (1989) interpret the Tobins Q ratios as an indication of the companys management
skills where a ratio above 1 implies good management skills and a ratio below 1 is an
indication of poor management skills.
Tobins Q is a simple measure that is easy to calculate and interpret, however, in order
for the Tobins Q to yield meaningful results an accurate measure of both market
capitalisation and replacement cost is needed. In fact detecting a Tobins Q higher than
1 could be an indication of an upward bias due to a less accurate measure or it could
indicate a price above the competitive levels, thus conducting a test with Tobins Q it is
important to keep the potential bias in mind.
The null hypothesis used in relation to the Tobins Q is different from the ones used to
analyses the other performance measures. When analysing the Tobins Q ratios they
must be compared to the value 1 because that is the ratio the companies are striving to
obtain.
6.2. Event day, event window and estimation period
Measuring abnormal performance on operating figures, the definition of the event day
and the estimation period are different from an event study on stock prices. In case of
operating figures the event study is not based on a single event day instead it is based on
the accounting year in which the merger or the acquisition is completed. It is important
to observe the event year as the year in which the deal is completed since the accounting

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figures do not respond to rumours or announcements seeing that the book value of the
company do not change until the deal is actually completed.
The estimation period is used to obtain a measure for the normal or expected
performance in the absence of an event. To be sure that this measure is in fact
unaffected by the event the estimation period is the accounting year prior to the event
year. According to Barber and Lyon (1996) it is important to base the measure of
expected performance on past performance and so the estimation period should be prior
to the event year.
6.3. Creating a benchmark - performance based
According to Barber and Lyon (1996) the best way to set up a benchmark is to
benchmark against past performance and industry. However, benchmarking against past
performance is the most important. Due to the limited scope of this paper the data
collected for the thesis was in some ways limited, and it was considered that the data
was not adequate for benchmarking against both performance and industry. Therefore,
in this thesis benchmarking is made exclusively on past performance. Furthermore, their
work also concluded that in order to obtain powerful test statistics it was important to
maintain a constant comparison group throughout the analyses for which reason the
benchmark group is kept constant over time as well as over operating figures.
The approach for creating a benchmark based on the past performance is in line with the
recommendations of Barber and Lyon (1996). The comparison group is based on the
ROA in the year prior to the event year. This ensures that the benchmark is created on
past performance unaffected by the event itself. The comparison group includes all
companies with a ROA of 10 % of the companys ROA. In most cases this yielded a
comparison group consisting of more than the company itself, however, in some cases
no companies fall within the comparison group and in these cases the benchmark is
created based on the company that had an ROA closest to the company in question. The
benchmark was finally calculated as the median ROA of the comparison group.
To calculate benchmarks for the remaining years of interest to the analysis and to
calculate the benchmark for the remaining operating figures, the comparison group is
kept constant and the median is calculated for each operating figure in each of the years
-1, event year, +1, +2 and +3.

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6.4. Specification of statistical tests Parametric and non-parametric tests


As with the event study based on stock prices both parametric and non-parametric tests
are applied to detect abnormal operating performance. Following Barber and Lyon
(1996) the reason for including both tests is the fact that a sample which consists of
extreme observations makes the parametric test less powerful and in these cases a nonparametric test is preferred.
Both the parametric and the non-parametric tests are based on the change in a
companys operating performance relative to the change in the appropriate benchmark.
According to Barber and Lyon (1996), testing for abnormal operating performance
based on changes yield more powerful tests than if applying the level of the
performance. To calculate the abnormal performance the first thing to do is to calculate
the actual differences as well as the benchmark differences between the periods of
analysis.5 The abnormal performance is then calculated by subtracting the benchmark
difference from the actual difference, that is APit = Pit - E(Pit). The calculation of
abnormal performance is repeated for each company, each year and each operating
figure. Having determined the abnormal performance it is possible to perform analysis
of abnormal operating performance, which in this case is tested by means of the
following two tests:

Parametric t-test

Wilcoxon Signed Rank test

In the following section the two tests will be presented. Focus will be upon the null
hypothesis and the most important aspects of each test. It will thus not be a
comprehensive elaboration of each test.
6.4.1. Parametric t-test for abnormal operating performance
As with the parametric test with respect to stock prices the t-test focuses on the
cumulative abnormal performance (CAR). To calculate CAR with respect to operating
figures the aggregation takes place over the yearly abnormal performance measures.
That is when calculating CAR for the event year it only consists of the abnormal
performance measured as the difference between the pre-event year and the event year

The difference in the performance measures and the corresponding benchmarks are calculated over the
periods: year -1 to event year, event year to year 1, year 1 to year 2, and year 2 to year 3.

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and so forth. Again it is necessary to aggregate over time for each company and across
companies at each point in time. Finally the average CAR is calculated and applied to
test the null hypothesis of no abnormal operating performance, here that the average
CAR is equal to zero.
As with the t-test performed on stock prices this particular t-test is submitted to the
same assumption in relation to the distribution of abnormal performance. It is likely that
these assumptions are violated making the results less powerful. Furthermore, when the
objective is to analyse operating figures it is likely that a few extreme observations will
affect the average CAR and then affect the conclusions that can be drawn from the test.
A t-test based on unwinsorized data will result in conservative tests compared to nonparametric ones due to the extreme observations in the data. To overcome this problem
winsorized data is applied. In this way the extreme observations that fall outside the 1st
and 99th percentiles are replaced by respectively the 1st and 99th percentile. By applying
winsorized data the conservatism disappears. (Barber and Lyon, 1996)
6.4.2. Wilcoxon Signed Rank test for abnormal operating performance
To overcome the potential problems with respect to the assumptions a non-parametric
test is also performed - in this case the Wilcoxon Signed Rank test. The test is based on
the assumption that the probability of observing a positive difference is the same as the
probability of observing a negative difference, which leads to the null hypothesis of a
median abnormal operating performance of zero. To obtain the test statistic the starting
point is the abnormal performance, which is calculated by subtracting the benchmark
(the median in the benchmark group) from the actual performance based on
differences. First, the absolute values of the abnormal performance is ranked, the lowest
abnormal performance is given rank 1. Afterwards, the original sign is reassigned to the
ranks. Third, the ranks with a positive sign are summed and the ranks with a negative
sign are summed. Finally, the sum of both positive and negative ranks is calculated and
tested against the null hypothesis, expecting the sum of ranks to be zero, which
corresponds to an equal probability of observing a positive or a negative sign.

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7. Test for differences between the strategies


When comparing the average CARs for the six original strategies and the two combined
strategies an F-test is applied. There are two reasons why computing multiple t-tests
instead of the F-test does not work. The first reason is that one would have to perform
the t-test multiple times, which leads to the second reason, concerning the increasing
risk of making a Type I error. Making a Type I error means rejecting the null hypothesis
when it in fact is true and by computing multiple t-test the probability of making the
Type I error increases proportionally by the number of t-tests. A method to circumvent
this problem is by decreasing the significance level alpha, however; this will increase
the risk of making a Type II, where the null hypothesis is not rejected even though it is
false. Therefore, when comparing the means of more than two populations the analysis
of variance must be used.
As for other parametric tests, the analysis of variance has some assumptions that need to
be fulfilled before the conclusion is reliable. In the case of the analysis of variance
independence between cases must exists, the random variables must be normal
distributed and the population variances must be equal. The assumption most frequently
violated is the normal distribution of the random variables. This problem can be
resolved by the use of transformation. The methods used in most cases are squaring the
variables, taking the logarithm, the square root or the reciprocal value of the random
variables and afterwards conducting the F-test as well as the confidence intervals again.
The conclusions based on the transformed variables will now be reliable because the
assumptions will be fulfilled.
In this thesis the transformations are conducted by raising the CARs to the power of 0.5
because this transformation diminishes the impact of extreme outliers and the histogram
of the abnormal returns becomes more bell shaped.
The result of the F-test gives an indication of whether or not a difference between the
population means exists. However, the test does not indicate between which means the
difference exists and therefore, to be able to examine the pair wise differences three
methods are available.

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The first method used to create the simultaneous confidence intervals is the Fishers
Least Significant Difference (LSD) which uses the Student t distribution to test whether
differences exists by use of an adjusted variance. One drawback in relation to this
method is, that it becomes more and more unreliable as the number of comparisons
increases due to the problems regarding the Type I errors as mentioned above. This is
the reason for employing the second method called the Bonferroni Adjustments to LSD
Method which modify the alpha level according to the number of pair wise comparisons
included in the test. This adjustment increases the risk of conducting the Type II error.
The most powerful test named Tukey Multiple Comparison Method addresses both the
Type I and the Type II problem. The test determines if any pairs of the sample means
have a greater difference than the critical value. In theory this method requires the
sample sizes to be equal, nevertheless, in most cases this is not the case and adjustments
can be made to overcome this requirement.
In some cases, the F-test rejects the null hypothesis concluding a difference exists,
however, at the same time the Tukey test does not reject the null hypothesis and thereby
concludes that no difference exists. This can happen because Tukey is a more
conservative approach by only looking at the pair wise differences. Under the null
hypothesis for the F-test all the population means are expected to be equal and the
alternative hypothesis expects at least one of the means to differ. In reality, what the Ftest does is to look at linear contrasts whereas pair wise comparisons are only one of
many linear contrasts. Therefore, when two opposing conclusions occur the final
conclusion must be that no significant difference is found between the means.

8. Overview and discussion of the research approach and the selected tests
Before focusing on the empirical results a short overview of the selected tests is
presented here as well as a discussion of the appropriateness of the research approach.
8.1. Overview of the research approach
With respect to examining abnormal returns based on stock prices the following four
tests are conducted:

Parametric t-test

Non-parametric tests Rank test, Sign test and Generalized Sign test
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These tests are performed for test of short-term abnormal performance and are
conducted on different periods of time - the event window, 1 month, 3 months, 6
months and 1 year. First, the performance of the entire sample is tested in order to
detect abnormal returns on an overall scale. Afterwards, the tests are conducted on each
strategy in order to detect possible differences in performance in relation to the choice
of strategy. The reason for applying stock prices exclusively to the analysis of shorter
time intervals is an attempt to avoid possible macroeconomic tendencies from
influencing the stock prices and the conclusions.
Abnormal operating performance is measured by means of:

Parametric t-test

Non-parametric test Wilcoxon Signed Rank test

With respect to abnormal operating performance focus is upon the long run abnormal
performance and these are also conducted on different periods of time event year, 1
year, 2 years and 3 years after the event year. Again the tests are performed on the total
sample and afterwards on each strategy separately.
Finally, in relation to both stock price performance and operating performance a test for
differences between the strategies is conducted by means of an F-test as well as pair
wise difference methods.
8.2. Discussion of choice of research approach
Consensus is as mentioned to apply the event study methodology when testing the
effects of an event upon the performance of the company and in this aspect the method
chosen is appropriate. Furthermore, the parametric test and the non-parametric tests are
all conducted in line with recommendations from other research papers in the field, in
particular Brown and Warner (1985) and Bartholdy et al. (2007) and so the method and
the tests that are chosen are considered to be appropriate. Brown and Warner (1985),
Bartholdy et al. (2007), MacKinlay (1997), and Barber and Lyon (1996) have been the
main literature in determining the method for evaluating performance and the included
tests are in line with their recommendations. In defining and performing the various
statistical tests the original authors have been applied in order to perform the tests
correctly. This approach of relying on previous empirical work in deciding upon the
most relevant tests, and afterwards constructing the tests in line with what is

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recommended by the professor - who actually designed the test - is considered to be an


appropriate and relevant way to determine how to conduct an event study. In
conclusion, the overall research method and the statistical tests are appropriate for this
type of research and furthermore, in line with previous empirical work.
Most empirical work in this field of research is agreeing that the best choice is to
perform both parametric and non-parametric tests to support the conclusions and not
only rely upon one test. Most of the statistical tests have some drawbacks or at least
some potential problems and by applying more than one statistical test, the results will
support each other and it is possible to address the drawbacks.
In choosing which tests to apply to a certain research problem it is necessary to keep in
mind the data that is to be analyzed and in many cases it is appropriate to adjust the data
to overcome potential problems, and thereby improving the power and specification of
the tests. Conducting analysis upon stock prices a potential problem is thin trading,
which is common on smaller stock exchanges. The data in this thesis shows evidence of
thin trading and so trade-to-trade returns have been applied in order to overcome the
problems with thin trading. According to Bartholdy et al. (2007) thin trading can be
adjusted in several ways Missing data, lumped returns, uniform returns and trade-totrade however, the recommendation from this work is to adjust for thin trading by
means of the trade-to-trade adjustment seeing that the power and specification of the
test is improved the most. In analyzing the operating performance winsorized data has
been applied in order to avoid outliers that would influence mean and variance and in
that way make the parametric t-test less powerful. The choice of winsorizing the data is
equally in line with what is recommended in research literature.
In the thesis both parametric and non-parametric tests are included. This is considered
to be an important and correct decision. The parametric t-test is under ideal conditions
the most powerful test. However, as mentioned, the t-test is submitted to stringent
assumptions in relation to the distributions of returns and in those cases when the
assumptions are violated the power of the test is reduced. The main advantage of
including non-parametric test is the fact that they are not restricted by the same
assumptions and thus under less ideal conditions the non-parametric tests becomes more
powerful than the parametric tests. In relation to the analysis of abnormal stock price

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performance three non-parametric tests are performed the Rank test, the Sign test and
the Generalized Sign test.
In comparing the power of the non-parametric tests the Rank test is the most powerful
of the three under ideal conditions. The Generalized Sign test has more power than the
Sign test, and in the case of an increasing event window it also outperforms the Rank
test. (Cowan 1992)
In relation to measuring abnormal performance based on either stock prices or operating
figures it is recommended to apply non-parametric tests instead of parametric tests due
to the non-parametric tests having more power. The conclusion in favour of the point of
view that the non-parametric tests are more powerful than the parametric one is an
indication of the fact the assumptions are violated seeing that otherwise the power of the
t-test should have dominated. In relation to stock price performance Bartholdy et al.
(2007) emphasizes non-parametric tests compared to parametric ones and in the case of
operating performance Barber and Lyon (1996) concludes that the Wilcoxon Signed
Rank test outperforms the parametric test.
Prior to performing the analyses and based upon previous research it is expected that in
order for the parametric t-test to be well specified a quite large sample is needed in
order for the assumptions not to be violated. This poses potential problems in relation to
the smallest of the six strategies in this thesis (namely R&D and Convergence) and
the result might be that the returns are not normally distributed and the conclusions are
less reliable. The larger the sample the more likely it is that the assumptions are
fulfilled. In these cases with violations of assumptions the conclusions drawn from the
parametric t-test must be compared to the conclusions drawn from the non-parametric
tests to verify the power. In relation to the non-parametric tests it is expected that the
tests are well specified and in detecting abnormal performance these conclusions should
have higher reliability than the corresponding parametric ones.
Despite the fact that the selected tests in this thesis are designed in correspondence with
recommendations from previous research literature, there might still be some potential
problems or biases that might influence the results, but which have not yet been
addressed.

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These potential biases are in cases of stock prices among other things related to the
benchmark portfolio. In this case as in many other cases a market index is chosen as a
measure for the normal performance against which the individual abnormal returns are
calculated. According to Barber and Lyon (1997) the choice of the market index as
reference portfolio poses three potential biases in particular in relation to longer time
intervals. These biases are referred to as: new listing bias, rebalancing bias, and
skewness bias.6 These biases are relevant in relation to analysis of long run abnormal
performance. In relation to this thesis the analysis of stock price performance is
restricted to shorter time intervals, therefore these biases are not considered to be
severe, except for perhaps on the one year time period after the event.
Furthermore, a potential and probably more important bias is related to the presence of
variance increases around the event day. The increase in variance stems from the fact
that it takes time to process new information and at the same time stocks are expected to
react differently to news. This results in an increase of the variance for the individual
stock as well as an increase in the cross-sectional variance. This problem of eventinduced increase is addressed by among others; Boehmer et al. (1991), Brown and
Warner (1985), and Bartholdy et al. (2007). Failure to adjust for the event-induced
variance increases the estimated variance used in the event study making it likely to
underestimate the variance in the event window, which is likely to lead the conclusion
in which the null hypothesis is rejected too often. The significance of this bias will
determine how much the reliability of the tests will decrease.
The final bias discussed here is in relation to the creation of a benchmark for operating
figures. It is already mentioned that the best way to create a benchmark is by applying
both past performance and the industry. In this thesis benchmarking is performed only
upon past performance (the most important). The benchmark group is kept constant
over time as well as across performance measures. In creating the benchmark based on
ROA (EBIT) and applying this to the remaining five performance measures might bias
the results. It is likely that the median calculated for the remaining performance
measures are affected by some extreme observations due to the fact that the benchmark

The new listing bias refers to the potential problem in relation to the analysis of long-term stock price
performance. Using the market index as the benchmark could possibly create a bias due to the
composition of the index that might change over time. The rebalancing bias refers to the fact that market
indexes usually are rebalanced frequently while the sample firms are not rebalanced. Finally, the
skewness bias refers to the fact that the long run abnormal returns are positively skewed.

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group might contain observations falling outside the intended interval of 10%. This
decision might influence the results and remains a potential improvement for further
research.
Overall, the research approach is well specified and well documented and furthermore
appropriate for an event study of this kind. Despite a few potential biases that have not
been addressed it is still considered that the method applied to this thesis is in
accordance with similar work in the field. Due to limited scope and time for preparation
of the thesis these potential biases have not been addressed and instead only minor
focus will be paid to these biases and they will remain recommendations for later
improvements of this event study.
In the following a brief presentation and description of the data used in the thesis is
provided. This is to serve as a starting point before presenting, discussing and
evaluating on the empirical work. The aim of the descriptive statistics is to provide an
overview of the sample on which the event study is based.

9. Descriptive statistics
Before going into debt with the analysis to be performed in this thesis a short
description of the data is presented. As mentioned earlier, the event study is attempting
to detect abnormal returns in a sample of 959 mergers and acquisitions from the time
period 2000 to 2004. By use of this sample the two subgroups Daily stock returns and
Accounting figures are created consisting of 410 deals and 389 deals. The break down
into the different strategies is illustrated in table 9.1.

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The selected data for this thesis has resulted in an unequal distribution of deals in each
group strategy. It is considered that it would has posed a bias to the study had the
selection of data been performed in order to secure the same number of deals in each
group. This is also in line with Bower (2001) in which a clear difference is traceable
between the different strategies and the number of transactions in each strategy.
Bartholdy et al. (2007) conclude that at least 25 events are needed in order to secure
adequate power of the test that is conducted. In line with this the initial objective was to
ensure at least 25 events in each strategy. Discarding the division of deals between
strategies and maintaining focus upon documenting the right strategy the result was two
samples with the characteristics illustrated above.
The strategies named Geographic, Overcapacity, Market + Product, Convergence
and R&D are inspired by Bower (2001). The reason for dividing the strategy Market
+ Product into two groups is expectations of differences between the two strategies.
The last group, R&D + Convergence is constructed to overcome possible difficulties
with respect to the power of the tests since the samples consist of less than 25 deals.
As mentioned in the introduction the M&A activity varies over time - a phenomena
known as merger waves. The sample in this thesis is constructed by deals over a
period of five years and different aspects might have influenced the M&A activity. Over
the years different macro economic trends and events may have influenced the
willingness to engage in mergers and acquisition. Most importantly the burst of the
Internet bubble in 2000 but also 9/11 in 2001 have influenced the financial markets and
potentially the creation of abnormal performance at least abnormal stock performance.
In relation to the macro economic trends a distinction between countries and year of the
transaction might yield relevant information, which is illustrated in the following
sections.
9.1. Description of the strategies
As mentioned above, Bower (2001) divides the motives for completing a merger or an
acquisition into five strategies. For companies who follow the Geographic Roll-up
strategy some common characteristics are the fact that they believe in local presence,
and therefore, the companies they acquire abroad keep their own brand name. The main
reason for engaging in a merger or an acquisition is to obtain synergies from an increase
in capacity, economy of scale, and cost cutting. The industry in which these companies

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often operate can be described as highly fragmented; an example is the financial


industry. The strategy Overcapacity is used by companies in mature industries: like
mining, manufacturing, transport or utilities where excess capacity exists. Due to
competition the companies attention is focused on optimizing their core business and
reducing production costs. Companies need to consolidate within this kind of industry,
because the way to survive is by becoming a significant player. When a company
follows the Market + Product strategy the motive is twofold. The purpose might be to
get a broader international reach and thereby enter a new country. Otherwise, the motive
could be to strengthen the product line by focusing on the core business units or expand
into new products, which support the existing product mix. An additional rationale
within this strategy is to reinforce the value chain as a whole, which can be done by
horizontal integration where the company merge with or acquire a competitor or by
vertical integration where the company incorporates the resources from a supplier into
the existing value chain. This strategy is used by companies from almost all industries
due to the general motive of enforcing the value chain. The R&D strategy is used
mostly by pharmaceutical and software companies because the motive behind a merger
or an acquisition is to buy know-how or new technology and thereby not use own
research and development resources to increase the knowledge of the company. The last
strategy called Convergence is used when the motive is to enter new business areas
that have very little or no relation at all to the existing business units. The rationale is
that the new business has a huge growth potential and may be a good complement to the
existing business. An example could be a hotel, which decides to buy a company
producing soft drinks. These two industries are not directly related but complement each
other.
9.2. Descriptive statistics Daily stock prices
The sample included in the analysis of daily stock prices consists, as mentioned above,
of 410 completed deals, a list of these are displayed in appendix B. Table 9.2.1
illustrates how many of the deals were completed with an acquirer located in the UK or
within the Scandinavian countries respectively as well as the number of deals completed
within each year of the period analysis.

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As can be seen from the table the deals made by UK acquirers accounts for more than
three quarters of the total sample and thereby trends within the UK market may have a
significant influence on the results of the analysis. Also the fact that the deals completed
within the UK during the year 2000 make up more than one third of the sample is worth
noticing. A reason could be the effect of the Internet bobble, which made a huge amount
of companies participate in merger and acquisition activities. It is also noticeable that
the number of deals decreases during the period of analysis with respect to all countries
indicating a merger wave peaking around 2000 and declining afterwards.
9.3. Descriptive statistics Accounting figures
The sample analysed with respect to the performance measures includes 389 deals,
which are divided as illustrated in table 9.3.1 presented below. The list of deals is
disclosed in appendix C.

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As was the case when using the daily stock prices the deals completed by an acquirer
located in the UK accounts for around three quarters of the total deals included. When
examining the development in number of deals completed during the different years
within the analysis period it appears that the year 2000 and the 2001 both experienced a
huge number of deals whereas the number decreased afterwards. This development
indicates that the wave peaked around 2000/2001 and started declining in 2002.
The overall trends illustrated by both tables are the facts that the UK acquirers account
for around three quarters of the total deals included and a possible merger wave peaking
around the year 2000 and 2001 is detected.

10. Hypotheses and expectation in relation to the empirical results


The following section is a presentation of the hypotheses that represent the expectations
in relation to detecting abnormal performance. Afterwards the empirical results are
evaluated.
The research question in this thesis has been created based on an examination of the
available literature in relation to value creation in mergers and acquisitions. The
available literature does not present a unique consensus in whether or not value is
actually created. The research question in this thesis was as mentioned, primarily based
on the two articles by Moeller et al. (2005) and Bower (2001) which also served as the
base for the expectations to the event study.
Overall, it is clear that the motivation for the acquiring company is to create value.
However, it should in this case be kept in mind that the value the acquiring company
expects in relation to a merger or an acquisition not necessarily has to appear right after
the deal is completed. It is likely that the expected value effect will not show until a
while after the acquisition. However, despite the potential passing of time before the
gains from the merger or the acquisition reveal themselves the main motive is still value
creation. Depending on the motive for the transaction or the strategic rationale the
expected result of the merger is likely to vary and in relation to this it is also likely
that the time period, which needs to pass before value is created, might also differ. If for
instance the acquiring company uses mergers or acquisition to create innovation instead

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of relying on their own R&D resources, the gains from the deal is likely to evolve after
several years.
With the main objective from the acquirers perspective being value creation a clear
difference exists between that objective and empirical evidence of value destruction.
These opposing views are considered in formulating the expectations regarding the
empirical results from this event study.
According to Moeller et al. (2005), their analysis indicated that value was destroyed in
the sample of US based companies engaging in M&A. The reason for this overall
tendency was found in relation to a group of deals in which very large losses occurred.
This group of large loss deals resulted in an overall conclusion in favour of value
destruction, despite the fact that the remaining companies actually created value if
considered separately. The existence of a group of companies experiencing very large
losses is considered likely in the case of UK based and Scandinavian based companies,
and therefore, a similar trend is expected in this thesis. This is supported by the fact that
the main part of the deals included in the sample are UK based and seeing that the
M&A activity in the UK corresponds well with the trends from the US it is likely that
value destruction would be present in this thesis as well. (Sudarsanam, 2003) This
serves as the basis for the following overall hypothesis:
Hypothesis I: Overall, mergers and acquisitions will destroy value for the acquiring
company.
According to Bower (2001) as already mentioned, the result from a merger or an
acquisition depends on the underlying strategy or rationale behind the deal. The
rationale behind a certain deal is equally linked to the integration process following the
deal, which poses great challenges to the acquiring company where the integration need
to be structured and carefully prepared in order for the merger or the acquisition to
become a success. However, when the rationale is well documented and the integration
process is successfully constructed, the merger might turn in to a success. In those
cases, when the rationale for a deal is thought through the quality of the post integration
will be inferior and the success of the deal is questionable. When the deal is not
carefully prepared and the success is doubtful the conclusions by Moeller et al. (2007)
are supported. As pointed out by Bower (2001) the challenges in successfully

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completing a specific merger or acquisition differ between the strategies supporting the
conclusion that the performance of the acquiring company will vary. Some strategic
rationales are expected to be easier to overcome successfully than others. This results in
the second overall hypothesis:
Hypothesis II: The post-merger performance of the acquiring firm is dependent upon
the underlying strategy or rationale for the deal, and therefore, a difference between the
strategies will be detected.
It is likely that the results in relation to value creation will differ over time. It is
therefore necessary to focus upon performance in the short term as well as in the long
term. Overall stock prices have been applied to detect abnormal performance in
different periods ranging from the event window of 11 days and up to a one year period
after the event. Around the event the stock prices are expected to respond to news in
relation to an upcoming merger. According to MacKinlay (1997) news that is perceived
as good news will affect the stock market positively. In relation to this, it is expected
that most announcements of mergers and acquisitions will be perceived as positive
news, which will result in a positive reaction in stock prices in the days following the
announcement. According to the efficient market hypothesis (EMH) stock prices will
react immediately to new information. This aspect combined with a presumed positive
reaction to good news is expressed by an expectation of a positive reaction in the very
short run in this case the event window of 11 days. This expectation is supported by
the studies conducted by Franks & Harris (1989) and Goergen & Renneboog (2003)
presented in section 3. Concerning the long-run the studies by Frank & Harris (1989)
and Baker & Limmack (2002) presented in section 3 all documented negative abnormal
returns. This leads to the following hypotheses in relation to the time aspect:
Hypothesis III: In the very short-term an announcement of a merger or an acquisition
will result in a positive reaction in the stock price.
Hypothesis IV: In the longer term (up to one year after the event) a merger or an
acquisition will result in no or a negative reaction in the stock price.
The another aspect, which will be examined in this thesis, is whether or not a difference
between the earning based measures and cash flow measures end up with the opposite

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conclusions concerning the operating performance, which is expected based on previous


empirical work.
Hypothesis V: By means of the earnings based performance measures a completion of a
merger or an acquisition will result in a decline in value whereas by means of cash flow
based measures no change in the operating performance will be detected.
In addition to the time aspect the choice of test will also affect the results of the
empirical work. As discussed above the choice of parametric or non-parametric tests
may influence the results. The parametric tests are submitted to some fairly stringent
assumptions in relation to the distributions and in cases when the assumptions are
violated, the results of the tests are not fully reliable. This provides further grounds for
the non-parametric tests. In large samples the assumptions are likely to hold and thus
the results are likely to be reliable, while in very small samples the assumptions are
expected to be violated and the results less powerful. In relation to the parametric t-tests
of abnormal performance the reliability of the tests depends on the sample over which
the test is conducted. In relation to the total sample it is expected that the assumptions
will hold and that the parametric t-tests are reliable, concerning the smallest samples
(R&D and Convergence) the assumptions are likely to be violated and so the
conclusions should not stand alone. With respect to comparing the parametric tests with
the non-parametric tests it is expected that in those cases when the parametric tests are
well specified the two types of tests will yield similar results. However, when the
parametric tests are not well specified the two types of tests are not expected to yield
similar results. This result in the following hypothesis:
Hypothesis VI: The empirical results based on parametric and non-parametric tests are
similar only when the parametric tests are well specified, that is when the assumptions
are not violated.
The hypotheses stated above are evaluated based on the empirical work that is
conducted in relation to this thesis and the evaluation of the research question and the
hypotheses are not primarily compared to or based on previous work. In some cases
comparisons to previous work will be presented if they support the empirical results or
directly oppose the results.

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11. Empirical evidence abnormal stock price performance


In this section the performance based on stock prices is evaluated. The analysis of stock
price performance is conducted over five time intervals the event window, 1 month
after the event, 3 months after the event, 6 months after the event and 1 year after the
event. In the following the empirical results from both the parametric t-test and the three
non-parametric tests will be presented for each time interval.
11.1. Empirical results parametric t-test
This test attempts to detect abnormal stock price performance by means of the null
hypothesis expecting a cumulative abnormal return (CAR) equal to zero. When the null
hypothesis is rejected the CAR is different from zero and thus abnormal returns are
generated. Depending on the sign of the test statistic the abnormal return is either
positive or negative. The results from the parametric t-test are displayed in table 11.1.1.7

The parametric t-test shows some clear trends in relation to the test statistics. The two
strategies Convergence and R&D stand out from the other four strategies as well as
the results for the total sample. In none of the five time intervals are the test statistics
significant in either of these two strategies. As mentioned previously, a sample of
minimum 25 observations (deals) is needed to detect abnormal performance, and seeing

7Sas

file: Sas code Daily Stock Parametric T-test (Event) Total

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that the Convergence and R&D strategies consist only of 19 each a potential
problem exists in detecting abnormal performance and this might explain why the tests
are insignificant.
A part from the six separate strategies, two combined strategies are included in the
analysis. Because of potential difficulties in obtaining significant test statistics in
relation to the two smallest strategies Convergence and R&D a combined R&D +
Convergence group have been created. As the combined group consists of 38
observations the sample in itself is large enough to yield significant and reliable results.
In the case of the parametric t-test based on stock prices the combined group R&D +
Convergence is unable to yield significant results. It is thus impossible to find evidence
of an abnormal performance different from zero. A potential explanation for the
combined strategy being insignificant may be found in relation to the test statistics of
the two strategies. Convergence yields a positive test statistic even though it is
insignificant, while R&D yields a negative result. The combination of these two
groups is likely to end up in between, and so it is likely that the combined test statistics
would also be insignificant, as seen in this case.
Focusing on the remaining empirical results the total sample displays significant results
in all five time intervals. Over the event window, the CAR is positive indicating an
abnormal stock price performance over the 11 day event window. In the remaining four
time intervals the total sample displays negative test statistics indicating a negative
performance in the periods following the event window.
The total sample yields positive abnormal performance over the event window, thus
indicating a positive effect on the stock price from the announcement of a merger
looking at the total sample regardless of the underlying strategy. Four of the six
strategies Geographic, Overcapacity, Product, and Market also yield significant
results. Overcapacity and Product are in accordance with the conclusion from the
overall sample, indicating a positive reaction to the announcements of mergers and
acquisitions. The opposite is found in the remaining two strategies that despite an
overall positive reaction indicate negative abnormal performance over the event
window. Despite evidence of positive abnormal performance in the total sample, the
conclusion drawn from looking at each of the strategies separately indicates a potential
difference between strategies, which supports hypothesis II.

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In the one month after the event the total sample still yields significant results, however
as mentioned, it is no longer positive but negative abnormal performance. In this time
interval the only two separate strategies that yield significant results are Geographic
and Overcapacity. Geographic yields results in accordance with the total sample that
is negative abnormal performance, while Overcapacity continues to yield positive
results and thus indicating positive abnormal performance. Negative abnormal
performance is an indication of the fact the stock prices react negatively to the
announcement of a merger or an acquisition, which means that value is actually
destroyed for the acquiring company.
The third time interval, three month after the event, is somewhat similar to the
conclusions drawn from the one month time horizon above. Overall, the total sample
displays negative abnormal performance and this result is supported by three of the six
strategies. Geographic, Product and Market all yield negative results and is in
accordance with the conclusions from the total sample. However, as was the case in the
one month interval Overcapacity stands out and displays positive abnormal
performance.
In the six months and the one year period after the event the results are similar. The
total sample shows negative abnormal performance. This is in accordance with the
empirical results drawn from Product and Market. These two strategies are the only
two of the six that yield significant results over these time horizons. Not surprisingly the
same result presents itself when combining the two strategies into Product + Market in
which the test also indicate negative abnormal stock price performance. The combined
strategy Product + Market is elaborated in the following.
This combined strategy yields significant results in all five time horizons. Over the
event window the combined strategy displays positive abnormal performance. This
conclusion is in accordance with the total sample as well as with the Product strategy.
However, Market seen in isolation indicates negative abnormal performance over the
event window. In the remaining four time intervals (1 month, 3 months, 6 months and 1
year) the combined strategy Product + Market shows evidence of negative abnormal
performance, which is in accordance with the results from the total sample as well as
the results from the two strategies Market and Product seen in isolation.

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11.1.1. Robustness and power of the parametric t-test


Having presented the results of the parametric test the assumptions are evaluated in
order to determine the power of the test. The assumptions are: normally distributed and
independently and identically distributed abnormal returns, an expected value of the
abnormal returns of zero, and a constant variance (homoscedasticity).
The most important of the assumptions relates to the distribution of abnormal returns
that has to be normal. In a sample consisting of daily returns and multiple observations
this assumptions is likely to hold when the sum of the abnormal returns becomes large
enough. It is thus expected that in most cases it will be reasonable to assume that this
assumption is fulfilled. In verifying the distribution for each strategy and over each time
interval several histograms are illustrated and a normal distribution curve added to the
figure to serve as a proxy for the distribution. Besides the assumption of normally
distributed abnormal returns a second assumption is set up to insure that the different
abnormal returns should be independently and identically distributed. This assumption
is in many cases assumed to hold, while in fact a potential problem related to assuming
that the returns are independent.
In the following discussion of assumptions focus will be upon the tests in which the test
statistics yields significant results, since these are the empirical results on which the
conclusions are drawn.
In appendix F the histograms testing the normality assumption are displayed for each of
the six strategies, the two combined strategies as well as for the entire sample and also
for each of the five time intervals (the event window, 1 month, 3 months, 6 months and
1 year). In the following a discussion of the normality assumption is presented and
afterwards the assumption in relation to independence is discussed.
The strategy of Geographic the t-test yielded significant results in three of the five
time horizons, namely the event window, one month after the event and three months
after the event. In all three time horizons the normality assumption in relation to the
distribution of the abnormal returns are fulfilled, however, in the one month and the
three month intervals a large concentration of abnormal returns around zero is present,
but the bell shape of the normal distribution is approximately fulfilled. In relation to
Geographic the assumptions connected to the three significant test statistics are valid

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which in isolation indicates that the empirical results of the t-test in relation to this
strategy is robust and valid.
Focusing on Overcapacity as a motivator for mergers and acquisitions; is a strategy
that yields significant results over the same three time horizons (event window, 1 month
and 3 months). In all three time intervals the assumption in relation to the abnormal
returns being normally distributed is fulfilled. As was the case with the histograms
displaying results for the strategy of Geographic the three month interval displays the
bell shape despite the fact that there is a large concentration of abnormal returns around
zero. Again if this assumption is seen in isolation the parametric t-test yield robust and
powerful results indicating an abnormal performance different from zero.
In both the case of Product and Market the parametric t-test show evidence of
abnormal performance in all time intervals except for the one month period after the
event. Overall, the normality assumption in relation to Product holds, despite a larger
fraction of abnormal returns around zero being displayed. This indicates that the
empirical results in relation to this strategy are powerful and robust. The same cannot be
said about the Market strategy. Over the event window the normality assumption
holds as the histogram shows the bell shape with larger distribution around zero.
However, in the remaining three time intervals the normality assumption is violated.
The histograms show no bell shape, but instead only two large pillars around zero.
Therefore, it is problematic to rely too heavily upon the results in relation to the
Market strategy. In order to verify these results non-parametric tests are needed.
The combined strategy of Product + Market yields significant results in all five time
intervals. The normality assumption is violated in the one month period, seeing that no
bell shape can be detected from the histogram, and the distribution is skewed to the
right. In relation to the total sample the normality assumption holds in all five time
intervals. The distribution of returns is based on a very large sample therefore, it is
expected that the distribution will turn out to be approximately normal.
The investigation of the histograms presented in appendix F showed, with few
exceptions, evidence supporting the view that the abnormal returns are normally
distributed and so the empirical results are reliable. In some cases the concentration of
abnormal returns around zero was larger than what should be implied by the normal

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distribution. It is considered likely that this is an implication that makes it more difficult
to detect differences between means, which then leads to a conclusion that the CARs of
the different strategies are the same. The investigation of potential differences between
the different strategies is elaborated below.
Having examined the distribution of abnormal returns the second important assumption
focuses upon independence of observations. As mentioned this is an assumption, which
in many cases are assumed to hold. However, in the case of mergers and acquisitions
this might not entirely be the case. There are some potential problems in relation to
assuming that the observations, in this case the deals, are independent. In fact some
aspects indicate that there is some interdependence between those companies engaging
in M&A.
Mitchell & Mulherin (1996) among others have found evidence of merger waves in
which the M&A activity is larger than in other periods. In these periods of increased
activity, the different companies are influenced by the trends in the industry and it is
questionable whether or not a merger or an acquisition can be considered independent.
Another aspect that indicates interdependence between companies is the fact that stock
prices are influenced to some extent by trends in the industries. The analysis in this
section is based on stock prices and seeing that the stock prices may be influenced by
different trends that might affect the company in question making the performance
dependant on the industry or the market as a whole. If for instance a certain industry is
characterized by excess capacity, and some of the players within the industry engages in
M&A activity in order to overcome problems of excess capacity and to improve market
shares other companies may be forced to follow suit. In this case mergers and
acquisitions might by interdependent.
These potential problems in relation to assuming that the independence assumption is
not violated indicate that the empirical results from the parametric t-test might not be as
robust and powerful as assumed based on the normality assumption. Overall, the
normality assumption is fulfilled, and therefore, do not pose any problems, however, the
assumption in relation to identically and independently distributed abnormal returns
poses some challenges.

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Overall, the conclusions from the parametric t-test imply that differences might exist
between some of the six strategies even though the total sample displays results in one
direction. In order to determine if differences between the six strategies actually exist an
F-test need to be conducted. The results of the F-test are presented below in section
11.3.
11.2. Empirical results the non-parametric tests
Evidence from the parametric t-test indicated some problems in relation to the
underlying assumptions and therefore relying exclusively upon the parametric test is
problematic. Therefore three non-parametric tests have been conducted and are
evaluated in the following.
11.2.1. Empirical results of the Rank test
As with the parametric t-test, the aim of the Rank test is to detect abnormal performance
based on the null hypothesis of zero abnormal performance. A positive and significant
test statistic indicates that value is being created and the abnormal return is larger than
zero, while a negative significant test statistic corresponds to value destruction. Finally,
an insignificant test statistic indicates that based on the data the test is unable to detect
any deviations from zero abnormal return. The results from the rank test are displayed
in table 11.2.1.1.8

The main observation from this test is the fact that all but two test statistics are
insignificant meaning that it is impossible to draw any inferences in relation to whether

8Sas file: Sas code Daily Stock Non-Parametric Rank Rank (Event) Total

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or not value is being created. In two cases the rank test is able to yield significant
results. In the event window those companies that were motivated by striving for
R&D seem to actually lose value as a response to the merger or the acquisition. This
indicates that the stock market reacts negatively to an announcement of a merger or an
acquisition that falls within the category R&D in the very short run. This might be
well in line with the expectations in relation to the gains from R&D not being present
until later on. In the three month period following the event, the strategy Geographic
shows evidence of positive abnormal performance. The test statistic is positive and
significant and so the Rank test indicates that in a three month interval the CAR is
different and larger than zero, meaning that value is created in the three month
following the announcement of the merger or the acquisition.
In comparing these conclusions to those conclusions drawn from the parametric t-test
disagreements are revealed. First of all the performance for the R&D group was
significant and negative when using the Rank test, while it was insignificant in the ttest. Second, the performance in the t-test on the three month period indicated that the
strategy Geographic showed negative abnormal performance, and so implying that
value was lost or destroyed in the three month following the announcement date. In
contrast this test statistic showed evidence of positive performance according to the
Rank test.
As the assumptions in relation to the parametric t-test are not fulfilled it is problematic
to rely on these results. On the other hand the Rank test is unaffected by the
assumptions and the most powerful and reliable conclusions are drawn from this test.
11.2.2. Empirical results of the Sign test
The second of the non-parametric tests is also robust to violations of the assumptions in
relation to the distribution of returns, and by including more than one non-parametric
test the empirical results will support each other. The Sign test attempts to detect
abnormal performance in the stock prices by means of the null hypothesis of no
abnormal return. A positive test statistic is an indication that the amount of positive
abnormal returns exceeds 0.5 meaning that value is created. A negative test statistic

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indicates that the number of positive abnormal returns is less than 0.5, which means that
value is destroyed. The results from the Sign test are displayed in table 11.2.2.1.9

The overall impression of the empirical results from the sign test is in line with the
results from the Rank test. All test statistics but one is insignificant, which means that it
is impossible to draw any conclusions as to whether or not value is created and it is
likely that no abnormal performance can be detected in the data. Despite a clear
overweight of insignificant test statistics one test stand out. On the three month period
following the event the strategy Geographic show evidence of significant positive
abnormal performance. This indicates that a larger amount than half of the daily returns
is actually positive, which leads to a rejection of the null hypothesis of zero abnormal
return. This observation is in line with the result from the Rank test above while in
disagreement with the parametric test that displays negative abnormal performance. The
fact the two non-parametric tests yield the same result increased the reliability of the
conclusion and thus undermines the conclusion that can be drawn from the parametric ttest.
The main conclusion from the Sign test is of no abnormal performance, the only
significant test statistic (three month - Geographic) displays positive performance.
More than half the returns are positive and a positive abnormal return is detected. This
conclusion is in line with the Rank test, but at the same time it is opposite to the
parametric test.

9Sas file: Sas code Daily Stock Non-Parametric Sign Sign (Event) Total

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11.2.3. Empirical results of the Generalized Sign test


The third and final non-parametric test is included as an extension of the Sign test. This
test then overcomes difficulties in relation to distributions being skewed. A positive test
statistic indicates that a larger fraction of positive abnormal returns are observed
compared to what is expected, which indicates positive performance. In table 11.2.3.110
the results of the Generalized Sign test is presented.
The main conclusion to be drawn is in accordance with the previous two non-parametric
tests indicating that most tests are insignificant. As with the Rank and the Sign test it is
not possible to detect any abnormal performance, since it is not possible to reject the
null hypothesis. Nevertheless, three test statistics stand out and yield significant
performance.

Again the strategy of Geographic stands out. In the Generalized Sign test this strategy
displays positive abnormal performance during the event window as well as over the
three month period following the event. A positive abnormal performance over the
event window indicates a positive effect on the stock prices directly following the
announcement of a merger or an acquisition. This conclusion is directly opposed to the
conclusion from the parametric t-test. This test indicated a negative abnormal
performance over the event window for this strategy. The difference is likely to be

10Sas file: Sas code Daily Stock Non-Parametric Gen. Sign Gen. Sign (Event) Total

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explained by violations of the assumptions in the t-test, which lead to problematic test
statistics. The three month period displaying positive abnormal performance is in line
with the conclusions from the Rank and the Sign test, while in disagreement with the ttest. The final significant test statistic in this case is the strategy Product + Market
which yields a negative abnormal performance over the event window. Looking at these
two strategies combined it appears that the effect of announcing a merger or an
acquisition is negatively displayed in the stock prices. This result is also in
disagreement with the conclusion drawn from the parametric t-test in which the
Product + Market strategy yields positive abnormal performance over the event
window, and so indicating a positive reaction in the stock prices to an announcement of
a merger or an acquisition.
The non-parametric tests are considered to be more powerful and reliable when
violations of the assumptions are a problem therefore, the conclusions should be based
primarily on the results from the parametric test.
Again the overall impression is of insignificant tests however, in three incidents do the
conclusions differ from this impression. In relation to Geographic the event window
and the three month interval show positive performance while the Product + Market
yields negative performance on the event window.
11.3. Examining differences between strategies
As mentioned earlier it is necessary to conduct an F-test in order to determine if any
differences can be detected between the strategies. The F-test is presented in the
following.
The F-test gives an indication of whether or not differences exist. To determine where
the differences are three pair wise difference methods are included LSD, Bonferroni,
and Tukey. In appendix H an overview of the assumptions in relation to the F-test and
the analysis of the pair wise differences (where the F-test is significant) are presented
for each time interval. The result of the F-test is displayed in table 11.3.1.11

11Sas

file: Sas code Daily Stock ANOVA F-test Daily Stock - (Event)

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In order for the F-test to display any differences between the strategies the test statistics
in the table above need be significant. The potential differences between the strategies
are examined for each time interval at a time.
The F-test for the event window is insignificant, which indicates that based on the data
available it is not possible to identify differences between the CAR for each strategy.
On the one month interval following the event the conclusion in relation to the F-test is
the same as in the case of the event window. It is not possible to detect any differences,
therefore; no evidence of differentiation between strategies can be detected within these
two time intervals. This result is reliable for both time intervals seeing that both the
assumption of normality and as well as that of variance homogeneity are fulfilled. Due
to the fact that no differences are detected in these two time intervals the methods for
detecting pair wise differences are not conducted.
The remaining three intervals yield significant test statistics and show evidence of
differences between the strategies though, in case of the longest time interval of one
year following the event the test is only significant on a 10% significance level. In all
three time horizons both the assumption of normality and that of variance homogeneity
hold. In the following the tests for pair wise differences are presented.
Over a three month period following the event the overall F-test indicates that a
difference between the strategies exists. By means of LSD, Bonferroni and Tukey
dissimilarities between strategies are examined. The first of the three methods, LSD,
shows evidence of differences between the strategy Overcapacity and the strategies of
Market, Product and Product + Market respectively. In the case of the Bonferroni
method a difference is still detected, however, in this case it is only between the

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strategies of Overcapacity and Product + Market. This conclusion is supported by


the most robust and the most reliable of the three tests, Tukey, which also yields a
significant difference between Overcapacity and Product + Market. Seeing that the
Tukey method is the most reliable it is likely that the only difference that actually exists
is between Overcapacity and the combined strategy Product + Market This is in
accordance with the conclusion from the parametric t-test in which Overcapacity
shows evidence of positive abnormal return while both the Product and Market as
well as the Product + Market indicate a negative abnormal performance.
The second longest time interval of six months shows evidence that is very similar to
the conclusions regarding the three months interval. Again the LSD indicates significant
differences between Overcapacity and Product, Market, and Product + Market
respectively. With respect to the Bonferroni method no differences is revealed, despite
the fact that the F-test indicates that differences exist. Again, the main attention will be
focused upon the Tukey method that yields a significant difference between the CAR
related to the strategies Overcapacity and Product + Market.
From the parametric t-test presented in table 11.1.1 it can be seen that the strategy
Product + Market looses value within a six month interval after the event day. In the
case of the strategy Overcapacity, an indication of a positive abnormal return is
presented. However, this result is not significant and therefore, it is not possible to
determine if the average CAR is different from zero. The conclusion is that for
companies driven by the rationale Overcapacity an abnormal return around zero is
expected within the six month period after the event day and the companies using the
strategy Product + Market may expect a significant loss during the same period of
time.
Finally, on the one year interval the LSD method yields the same results as for the three
and the six months time periods. In relation to both Bonferroni and Tukey the
conclusions differ since, neither of these two tests detects any pair wise differences,
despite the fact that the F-test itself indicated dissimilarities between the strategies.
Again it is important to remember that as the Tukey method is somewhat conservative
compared to the F-test and therefore, it is likely that it would be wrong to conclude an
existence of differences between strategies.

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In the search for differences between the CARs the following conclusions can be drawn.
Over the event window and the one month period following the event it is not possible
to detect any differences between strategies which is contrary to the expectations of
hypothesis II that the strategies are different. Over the three month and the six months
interval following the event it was possible to find evidence in favour of the fact that the
effect of a merger or an acquisition differs between the different M&A strategies - in
this case between Overcapacity and the combined strategy Product + Market.
Finally, over the one year following the event a difference was expected based on the Ftest, however, according to Tukey no significant difference exists.
In comparing these results to the hypotheses on which the thesis is written a clear
disagreement is present. According to hypothesis II difference between the strategies in
relation to value creation is expected. However, in the case of stock prices it is only
possible to find evidence of differences in two of the five time periods. Furthermore, it
is expected that the effects of mergers and acquisitions in relation to value creation
would differ between the Market and the Product strategies, but no evidence of any
difference is found. This expectation was in fact the reason for separating the Product +
Market strategy presented by Bower (2001).
11.4. Summery of the empirical results in relation to stock prices
The analysis of stock price performance presented above is based on daily stock prices,
which are applied to detect abnormal returns within five different time intervals (the
event window, 1 month, 3 months, 6 months, and 1 year following the event day). The
analysis of stock prices focuses mainly upon the shorter time aspect. First, focus is upon
detecting abnormal returns based on the different strategies during different time
horizons to establish support for hypotheses I, IV, and V (section 11.1 and section 11.2)
and second, an analysis of differences between strategies are presented in order to find
evidence in support of hypothesis II (section 11.3). In the following focus will be upon
the main conclusions that can be drawn from the different performance measures, and
so it should be kept in mind that in some cases the test statistics do oppose to the
conclusion presented below.
In the analysis of stock price performance a parametric test as well as three nonparametric tests is conducted. The parametric test is subject to stringent assumptions
that affect the reliability of the test. In relation to stock prices the normality assumption

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is in large fulfilled, however, there are some problems in relation to independence


between the abnormal returns, therefore, the power of the test is reduced, and should be
compared to the non-parametric tests. The parametric test indicates overall positive
abnormal stock price performance in the event window, except from the strategies
R&D and Convergence that yield insignificant results and the strategies
Geographic and Market that yield negative performance. Within the remaining
periods the test displays negative abnormal performance, however, the strategy
Overcapacity stands out yielding positive abnormal performance. The conclusions
drawn from this test is subject to some unreliability due to the fact that the assumption
of independence might be violated. However, to some extent the conclusions from the
parametric test give of fair idea of the evaluation of the abnormal performance.
As expected, the non-parametric tests yield fewer significant test statistics, which
indicates that in most cases it is not possible, based on these tests, to infer evidence in
favour of value being created from M&A activity. In relation to the strategy
Geographic all three tests yield significant results. For the Rank test and the Sign test
the strategy Geographic is significant for the three month period following the event.
In the case of the Generalized Sign test the strategy Geographic is significant over the
three months and six months intervals. All four cases indicate positive abnormal
performance based on stock prices for companies engaging in M&A based on the
rationale Geographic. This conclusion in favour of value creation is opposite to the
conclusion from the parametric test in which the strategy Geographic yields negative
performance. The non-parametric tests are the most reliable; therefore, it is likely that
the performance is actually positive.
Having performed the analysis for abnormal performance, the test statistics support the
expectation of differences between the strategies. This is evaluated based on an F-test
and three pair wise difference methods. The test for differences is conducted on each
time interval; however, it is not possible to detect differences in all five time intervals.
Over the event window and the one month following the event the F-test does not detect
any dissimilarity, and therefore, it cannot be concluded that differences exist. This
observation is in contrast to hypothesis II. In the remaining three time intervals it is
possible to detect differences. In all cases the differences exist between the strategies
Overcapacity and Product + Market. Over the three and six month intervals the most
robust, but also most conservative measure, Tukey, indicates that Overcapacity

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outperforms Product + Market. Both Bonferroni and LSD support this observation,
however, LSD also indicates that both Market and Product are equally outperformed.
Over the one year interval neither Tukey nor Bonferroni display any differences, though
LSD indicates the above mentioned difference between Overcapacity and Product +
Market exist.
Despite the fact that only part of the test statistics yield significant results, it is
considered that in some cases it is possible to detect abnormal stock price performance,
as well as it is can be concluded that the performance of each strategy differs.

12. Empirical evidence abnormal operating performance


In this section the operating performance is evaluated. The analysis is conducted based
on four time intervals (the event year, 1 year, 2 years and 3 years after the event year)
and on the six performance measures; ROA (EBIT), ROA (EBITDA), ROS (EBIT),
ROS (EBITDA), CF ROA, and Tobins Q.
12.1. Presentation of empirical results
The six performance measures are applied to determine abnormal operating
performance in the longer run up to three years after the event year. To insure the
robustness of the tests the operating performance is evaluated based on six different
operating measures. For each of the six operating measures the results of the parametric
t-test are presented followed by a discussion of the robustness and reliability of the
results. Furthermore, the results of the Wilcoxon Signed Rank test are presented and
finally an F-test is conducted to detect any differences between the strategies.
Throughout this section the discussion of the assumptions tied to the t-test focuses
exclusively on the significant test statistics.
12.1.1. Return on assets EBIT
Seeing that return on assets is the prevailing operating measure for detecting abnormal
operating performance it will be the starting point in this presentation and discussion of
results.

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Table 12.1.1.112 shows the results of the parametric t-test of the return on assets (ROA)
based on EBIT. All tests except from one yield significant results. The total sample of
389 deals shows a significant negative abnormal performance, which means that in all
four time intervals the acquiring company destroys value in case of ROA (EBIT), the
acquiring company becomes less efficient at generating profits by use of their operating
assets.

The negative abnormal performance detected in the total sample in all time intervals is
also apparent in five of the six strategies. Only the fifth strategy Convergence shows
abnormal performance that differs from the overall trend based on ROA (EBIT). In all
four time intervals the test results are significantly positive, which corresponds to the
fact that when the rationale for a merger or an acquisition is Convergence the
parametric t-test indicates that the companies actually becomes more efficient in
generating returns.
In accordance with Bower (2001) the combined strategy Product + Market is included
in the analysis. I all five time intervals the test statistics yield significant negative
abnormal performance indicating that the effect of mergers and acquisitions within this
group of companies is negative when basing the analyses upon this operating measure.
The fact that these test statistics indicate negative performance is well in accordance
with the conclusion drawn from looking at the strategies Market and Product

12Sas file: Sas code Acc. Fig. Parametric Total T-test (Event) Total ROA (EBIT)

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separately. The second combined strategy R&D + Convergence yields significant


results in all five time periods except for the longest horizon - three years after the event
year. Over the event year this group of companies displays positive abnormal operating
performance indicating a positive effect on ROA (EBIT) after a merger or an
acquisition. Over the two following years the tests yield negative performance
meaning that in the longer run the effect upon ROA (EBIT) is negative.
As mentioned earlier, a parametric t-test is subject to some stringent assumptions. As
was the case in the analysis of stock price performance the most important assumptions
are normality in the distribution of abnormal returns and independence of observations
(deals). The analysis of the ROA (EBIT) reveals evidence of the normality assumption
being violated (Appendix G). Only in three cases is the normality assumption fulfilled,
which is in relation to the strategy Overcapacity over the event year and the year
following the event as well as in relation to the strategy R&D over the three year
period following the event. In the two test statistics based on the Overcapacity strategy
the distribution is approximately normal, however, there is a larger amount of
observations around zero as well as some extreme observations that make the
distribution negatively skewed. In relation to the R&D test statistic there are also some
extreme observations, but overall the distribution is approximately normal. Regarding
these three cases where the normality assumption is fulfilled robust conclusions can be
drawn.
The second assumption in relation to independence between the observations (deals)
included in the sample is assumed to hold. In the case of accounting figures the
observed figures for one company is independent upon what can be observed for other
companies. In the case of accounting figures the problem of potential biases relates to
the reporting of the accounting figures and the choice made by the companies in relation
to accounting methods is not influenced by competing companies. Therefore, the second
assumption of independence is expected to hold in relation to this performance measure.
Seeing that the normality assumption must be met in order to draw robust and reliable
assumptions in relation to the parametric t-test the overall reliability of the parametric ttest is flawed, and it would be a mistake to depend exclusively upon a parametric test.

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The Wilcoxon Signed Rank test is conducted to obtain robust and powerful results in
relation to detecting abnormal operating performance. The Wilcoxon Signed Rank test
is conducted for all four time intervals. The main conclusion from above is significant
negative abnormal operating performance across the entire sample except for
Convergence showing significant positive abnormal performance across all time
intervals.
Table 12.1.1.213 shows the results from the Wilcoxon Signed Rank test. The overall
impression yields an overall similar picture as that of the parametric t-test, but with a
smaller fraction of significant tests.

Over the event year five of the six strategies, as well as the total sample, yield
significant results. As with the parametric tests a significant negative abnormal
operating performance can be detected during the event year. Again only the
Convergence strategy stands out by displaying positive abnormal performance over
the event year, though only at a 10% confidence level. Concerning the one year, two
year, and three year intervals after the event year positive abnormal performance is
equally detected for the Convergence strategy. These results indicate that the
acquiring companies with exception of those following the Convergence strategy are
becoming less efficient at generating earnings in the periods after a merger or an

13Sas

file: Sas code Acc. Fig. Non-Parametric Total Wilcoxon (Event) Total ROA
(EBIT)

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acquisition, which supports the hypothesis I that value is lost as a result of negative
abnormal operating performance.
In the year following the event year the overall sample indicates negative abnormal
performance but not all of the remaining strategies yield significant results. The
strategies Product, Market and R&D yield significant negative performance, while
as mentioned Convergence show positive abnormal performance. On the two years
and three years horizons the overall sample are no longer significant and so it is not
possible to detect any abnormal performance neither positive nor negative. In the case
of the insignificant statistics, which indicate that no effect of M&A can be detected
based on ROA (EBIT).
The combined strategy Product + Market yields significant results in the three shortest
time periods (the event year, the 1 year and the 2 years following the event year). All
three cases show evidence of negative abnormal operating performance, which indicates
that the effect of a merger or an acquisition is negative and so value is destroyed. This
conclusion is in accordance with the conclusion drawn from the parametric t-test. In
case of R&D + Convergence the Wilcoxon Signed Rank test is significant in relation
to the year following the event year. This test statistic indicates negative abnormal
performance, which is also in accordance with the same horizon in the parametric t-test.
In conclusion, the analysis of operating performance based on ROA (EBIT) shows
evidence in favour of an overall negative abnormal performance. In relation to the
strategy Convergence, that displays positive abnormal operating performance,
deviations from the main impression are detected. The parametric t-test should not be
relied upon due to violations of the normality assumption; instead focus should be upon
the non-parametric test. In the case of Wilcoxon Signed Rank test fewer test statistics
are significant compared to the parametric counterpart; however, the conclusions drawn
based on the significant tests are the same for both parametric and non-parametric tests.
12.1.2. Return on assets EBITDA
This second operating measure based on EBITDA instead of EBIT was intended to
ensure an operating measure uninfluenced by both financing and accounting methods.
Despite some adjustments in this operating measure compared to the one using EBIT it

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is expected that the empirical results based on ROA (EBITDA) will be in accordance
with the results presented above for ROA (EBIT).
The empirical results of the parametric t-test are presented in table 12.1.2.1.14 In this
case all tests are significant. The overall impression from this table is an overweight of
in favour of negative abnormal operating performance. This is in line with the
conclusions drawn above in relation to ROA (EBIT). Negative performance in this case
indicates that the acquiring companies are less efficient after the merger. This overall
impression or trend is present over each of the time horizons for which the analyses are
conducted.

Despite an overall trend indicating negative abnormal performance there are some
exceptions in which value is in fact created. As with the first performance measure this
second measure indicates that value is created when the acquiring company follows a
Convergence strategy. This conclusion is apparent in all four time intervals. At the
same time these differences between negative and positive abnormal operating
performance also support the hypothesis that differences exist between the
performances of each strategy.
For ROA (EBITDA), Convergence is not the only strategy to reveal positive abnormal
performance. In the event year the Market strategy is also significantly different from

14Sas file: Sas code Acc. Fig. Parametric Total T-test (Event) Total ROA
(EBITDA)

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zero and positive. In relation to this result the operating performance of this group of
acquiring companies is positive in the shortest of the four time horizons, while it is
negative in the longer term. This is in accordance with hypotheses III and IV. In cases
of mergers and acquisitions performed in relation to Overcapacity there is evidence of
positive abnormal performance, though this is only evident in the longer time horizons
of one year, two years and three years after the event year.
In relation to the combined strategies both the Product + Market strategy, as well as
the R&D + Convergence strategy yield significant results in all four time horizons.
For Product + Market the results show evidence of negative abnormal operating
performance and so value is lost or destroyed in relation to the merger or the
acquisition. This result of the combined strategy is overall in line with the conclusions
drawn from the two strategies Market and Product separately. These test statistics
yield negative results; however, within the event window a deviation is detected, as the
Market strategy shows positive abnormal performance. In the case of R&D +
Convergence the results indicate positive abnormal operating performance over the
event year as well as the three year period following the event. Furthermore, the results
indicate negative abnormal performance in the remaining two time periods (1 year and 2
years after the event). In looking at the two strategies separately the results differ. The
Convergence strategy yields positive results while the R&D group displays negative
performance is negative in all four time intervals.
The assumptions attached to the parametric test are the same as mentioned above in
relation to ROA (EBIT). The conclusions in relation to ROA (EBITDA) correspond
overall to those of ROA (EBIT). The normality assumption is violated in most cases,
which indicates that the result has less power and is less robust (Appendix G). Only in
two incidences are the normality assumption fulfilled. The two year period after the
event in the case of Geographic indicates that the normality assumption is
approximately fulfilled, despite the fact that the distribution is slightly negatively
skewed. The second case is in relation to the event year for the Overcapacity group,
which indicates that the normality assumption holds. The second assumption of
independence between the observation is also in this case considered fulfilled based on
the same arguments presented in relation to ROA (EBIT), and so this assumption is not
the one posing problems.

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In table 12.1.2.215 the results of the Wilcoxon Signed Rank test for ROA (EBITDA) are
presented. In this case only a minor part of the test statistics is significant and so the
overall tendency is that it is impossible to draw inferences of abnormal performance,
which supports the hypothesis IV assuming no effect from mergers and acquisitions.
However, those tests that yield significant test results are in the larger part indicating
positive abnormal operating performance, which is in clear contrast to the empirical
results of the parametric test in which most test statistics indicate negative performance.
The fact that the Wilcoxon Signed Rank test yields opposite results of the t-test
underlines the problems in relation to relying upon results from a test in which the
assumptions are violated. In this case it would lead to a questionable conclusion.

Over the event year only two strategies yield significant results namely Geographic
and R&D in both cases a negative abnormal performance is detected. On a one year
horizon following the event year again only two strategies are significant, that is
Overcapacity and again R&D. A positive abnormal performance is detected in
relation to the strategy Overcapacity, which is in line with the parametric test results
presented above. R&D shows negative abnormal performance.
On a two year and a three year horizon the overall sample indicates significant positive
abnormal returns, which again is in clear contrast to the conclusions drawn from the
parametric tests. The acquisitions motivated by Overcapacity, Product, and

15Sas

file: Sas code Acc. Fig. Non-Parametric Total Wilcoxon (Event) Total ROA
(EBITDA)

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Convergence in this test yield positive abnormal returns. While only R&D show
evidence of significantly negative abnormal performance. On the three year horizon the
only significant results are those of Overcapacity and Convergence which yield
positive abnormal returns in accordance with prior years and equally the empirical
results from the parametric t-test. In this case the mixed strategies Product + Market
and R&D + Convergence are insignificant and so no conclusions can be drawn from
these tests.
In relation to ROA (EBITDA) the assumptions attached to the parametric test are
violated, therefore, the results cannot be relied upon. The conclusions drawn from the
parametric test are in most cases opposite to the results of the Wilcoxon Signed Rank
test keeping in mind that when a violation of the assumptions appears the main
conclusion should be based upon the parametric test. In most cases it is not possible to
detect abnormal performance, but for the main part of the significant tests, positive
abnormal operating performance is detected.
12.1.3. Return on sales - EBIT
Return on sales (ROS), the third performance measure was included to overcome the
historic cost drawback of ROA. ROS is created purely by income statement items and
are thus not affected by potential problems of historic costs. In table 12.1.3.116 the
empirical results from the parametric t-test for ROS (EBIT) are displayed.

16Sas file: Sas code Acc. Fig. Parametric Total T-test (Event) Total ROS (EBIT)

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Again all test statistics are significant and show an overweight of negative abnormal
operating performance, thus in relation to ROS (EBIT) the acquiring companies become
less efficient in generating earnings based on per unit sales. The fact that the companies
get worse at generating earnings indicates a negative effect of M&A. Again a few of the
parametric test statistics differ from consensus. Across all four time horizons
Convergence yield positive and significant test statistics indicating positive abnormal
operating performance. This corresponds to the conclusions drawn from the empirical
results ROA (EBIT) and ROA (EBITDA). In relation to the Geographic motive the
tests also yield positive and significant abnormal performance in three of the four time
horizons. In the event year the abnormal performance is still significant, however, in
this case it is negative. Finally, the performance of companies motivated by
Overcapacity obtains a positive abnormal performance in the two year horizon
following the event year, while the remaining years show negative abnormal
performance.
The combined strategies Product + Market and R&D + Convergence both yield
significant test statistics over all four time intervals. The Product + Market strategy
shows evidence of negative abnormal operating performance, which is in accordance
with the conclusions drawn from the two separate strategies. Both strategies indicate
that the abnormal operating performance is negative over all time intervals and it is
likely to expect that combining the two will yield similar results. Combining the
strategies of Convergence and R&D into one strategy yields test statistics, which in
three of four time intervals (event year, 1 year and 2 year) indicate negative abnormal
performance, while the three year period following the event year yields positive
abnormal performance. The conclusions based on the separate strategies are in contrary;
while Convergence indicates positive abnormal performance the R&D group of
companies shows evidence of negative abnormal performance in all four time periods.
The power of this parametric t-test of ROS (EBIT) is similar to what was seen with the
previous two performance measures. In all tests except for one the normality
assumption is violated (Appendix G), therefore, the t-test does not have adequate power
to draw reliable conclusions and must be supported by a non-parametric test. In relation
to the strategy Overcapacity concerning the event year the abnormal returns are
approximately normally distributed though slightly negatively skewed. In relation to the

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An empirical study of the value creation in M&A in relation to the strategic rationale

assumption of independence between observations it is assumed fulfilled, for the same


reasons as for the previous two performance measures.
The non-parametric Wilcoxon Signed Rank test yields empirical results in accordance
with the previous two performance measures. Only a minor part of the test statistics is
significant compared to the parametric tests. Those significant over the event year and
the year after the event year show negative abnormal performance, while those
significant over the two and three year periods after the event year show positive
abnormal performance. These results are overall in accordance with the results from the
corresponding test statistics in the parametric test and are outlined in table 12.1.3.2.17

In the event year the only significant test statistics are that of R&D, as with the
parametric test those acquirers motivated by R&D show evidence of negative
abnormal performance. This is also the case with the period one year after the event
year. Apart from R&D, Market also yields negative abnormal performance in the
one year period after the event year. Over the two longest time intervals - two and three
year periods after the event year - evidence of positive abnormal performance is found
in the strategies of Overcapacity and Convergence. In comparing these results to the
results of the parametric test above there are some differences. In relation to the nonparametric test Convergence is significant only in the three year period, while
Overcapacity is significant in both the two and the three year periods.

17Sas

file: Sas code Acc. Fig. Non-Parametric Total Wilcoxon (Event) Total ROS
(EBIT)

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As was the case with the six basic strategies, the combined strategies are also dissimilar
to the conclusions drawn from the parametric test due to the fact that the test statistics
are insignificant. In relation to market and product extension the non-parametric test
only yields a significant result over the one year period following the event year. The
test indicates negative abnormal performance, which is in accordance with the
conclusion from the parametric test. Concerning the total sample only in the second
year following the event year is the result significant and indicates positive abnormal
operating performance. This conclusion is opposite to that drawn from the parametric ttest on the same horizon, which indicates negative abnormal operating performance for
the total sample.
ROS (EBIT) yields results that are similar to the results from the previous two
performance measures based on return on assets. The test statistics in relation to the
parametric t-test are significant and yield in most cases negative abnormal performance,
however, the assumptions are violated and the non-parametric test is needed to obtain
robust and powerful conclusion. The conclusions from ROS (EBIT) in relation to the
non-parametric test are similar to the results from the parametric test. Most of the test
statistics from the Wilcoxon Signed Rank test are insignificant. However, the significant
test statistics show the following characteristics; the event year and the one year period
after the event year display negative abnormal performance, while displaying positive
abnormal performance over the two year and three year periods.
12.1.4. Return on sales EBITDA
In order for a company to maintain the same return on sales (ROS) the companys
earnings need to increase equally compared to sales to maintain the same margin as
before the merger or the acquisition. If a decrease in ROS (EBITDA) is detected the
aspiration of a constant or increase in ROS (EBITDA) is not fulfilled and thereby value
is destroyed.
ROS (EBITDA) yields tests results that are different from the overall picture of the
abnormal performance and these results are displayed in table 12.1.4.1.18

18Sas file: Sas code Acc. Fig. Parametric Total T-test (Event) Total ROS
(EBITDA)

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In the previous three performance measures the main trend was an overweight of test
statistics in favour of value destruction. In the case of ROS (EBITDA) a larger fraction
of test statistics indicates positive abnormal performance in particular in relation to the
original six strategies. Looking at the total sample including all 389 deals it is only over
the two year period following the event year that positive abnormal performance is
documented. The remaining periods for the overall sample are all significant, though
they yield negative performance. As mentioned, a negative development in the ROS
(EBITDA) is an indication that a company becomes less efficient in generating earnings
per unit of sales. Becoming less efficient and thus generating fewer earnings is an
indication of not living up to its potential and thus not gaining the intended effects from
a merger or an acquisition.
Positive abnormal performance is observed across time intervals and across strategies,
namely Geographic, Overcapacity, and Convergence yield results indicating that
the group of acquirers in these groups are becoming more efficient and have
experienced a larger increase in earnings compared to sales. In the event year and the
year following the event year Market also shows positive abnormal returns, even
though in the longer intervals the performance is significantly negative.
In relation to ROS (EBITDA) the results form the combined strategies are overall in
accordance with the previous three performance measures. The test statistics for all time
intervals are significant for both Product + Market and for R&D + Convergence.
Product + Market displays negative abnormal performance in all four time periods. In
contrast to the previous three performance measures the conclusions for the separate

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strategies do not yield similar results in all time periods. Market yields positive
performance over the event year as well as over the year following the event year, while
it displays negative performance in the remaining two periods. Product shows
evidence of negative abnormal performance in all four periods. Despite this difference
between the two basic strategies the combined strategy is still able to display significant
results. The combined strategy R&D + Convergence displays positive performance
over the event year and in the three year period following the event, while it yields
negative performance over the one year and two year periods following the event year.
Also in this case do the two strategies R&D and Convergence yield opposite
conclusions in relation to performance. In the case of R&D the abnormal performance
is negative, while it is positive for the Convergence strategy.
In relation to ROS (EBITDA), the power of the t-test is not adequate to reveal reliable
results, seeing that the assumptions are violated in most cases (Appendix G). Only in
four cases is it possible to conclude that the normality assumption is approximately met,
these four cases is found in relation to the two strategies of Geographic and
Overcapacity. For both strategies the normality assumption is not violated in two
periods, namely the one year and the two year periods after the event year. In relation to
the strategy of Geographic the distribution is approximately normal, though it is
slightly positively skewed, due to a few extreme observations. In case of the
Overcapacity strategy, the distribution is also approximately normal, but in this case
the distribution is slightly negatively skewed and is showing evidence of fat tails. Again
the independence assumption in relation to the observations is assumed to hold,
however, the power of the parametric test is overall not adequate for it to stand alone.
The Wilcoxon Signed Rank test in relation to the ROS (EBITDA) demonstrates a
fraction of significant test results. These are, however, in accordance with the
parametric test. The results from the Wilcoxon Signed Rank test are presented in table
12.1.4.2.19

19Sas

file: Sas code Acc. Fig. Non-Parametric Total Wilcoxon (Event) Total ROS
(EBITDA)

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The only significantly negative performance indicator is presented by the R&D


strategy over the event year. The fact that a group of R&D acquirers will experience
negative abnormal performance in the event year might be explained by the fact that an
acquisition motivated by R&D is an acquisition focused on future growth and as such
the benefits might not reveal itself already in the event year. The observation is
supported by the fact that over the three year period following the event year the test
actually yields positive abnormal performance, indicating that the benefits from the
acquisition might have started to be accomplished.
In the following three time periods the significant test statistics are all positive. In the
year after the event year the strategy Overcapacity shows as the only strategy evidence
of positive abnormal operating performance. The two year period after the event year
the overall sample is significantly positive. Besides the total sample being significant
three of the original six strategies Geographic, Overcapacity, and Convergence
also yield positive abnormal performance. Finally, the three year period after the event
year yields positive total abnormal performance as well as evidence show that the
strategies Convergence and as mentioned earlier, R&D yield identical results.
Overall these positive and significant test statistics indicate that at least for some of the
groups the operating performance in the long run is positive and thus in fact value is
created.
The combined strategies show results opposed to those from the parametric test. Only in
one of eight tests does the Wilcoxon Signed Rank test yield significant results. For the
seven insignificant test statistics it is not possible to draw inferences of any abnormal

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performance. For Product + Market none of the four time intervals are significant,
which is in line with the two separate strategies. In relation to the combined strategy of
R&D + Convergence the Wilcoxon Signed Rank test yields significant and positive
abnormal operating performance over the two year period following the event year. The
main influencer of this result is likely to be the deals that originally constituted the
strategy Convergence; this group displayed positive abnormal performance over the
same period.
ROS (EBITDA), the fourth performance measure, displays positive abnormal
performance, which indicates that companies generate value when engaging in M&A.
The assumptions related to the parametric t-test are violated, therefore, the conclusion
are primarily based upon the non-parametric test. The largest part of test statistics is
insignificant. All the significant tests except from one (R&D over the event year)
show evidence of positive abnormal performance.
12.1.5. Cash Flow Return on assets
Cash flow return on assets (CF ROA) was included in the analysis primarily to
overcome potential earnings manipulation the might be present in ROA. CF ROA
indicates a companys ability to generate cash from the investments in assets. The
empirical results of the parametric t-test are presented in table 12.1.5.120 for this
performance measure.

20Sas file: Sas code Acc. Fig. Parametric Total T-test (Event) Total CF

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Overall the tests statistics are significant, however, in the two smallest groups
Convergence and R&D not all four time intervals yield significant tests. Compared
to the previous four performance measure a larger amount of the test statistics yield
positive results (if including the two combined strategies) implying that the effect of a
merger or an acquisition is positive and thus creating value.
The total sample shows in all four time intervals a positive abnormal performance,
which is mainly influenced by the results from the group that is motivated by the
Product strategy. The cumulative abnormal performance for the strategy Product is
markedly higher than the other strategies and thus a main effect in the test statistics for
the total sample will be present.
In accordance with the previous four performance measures the Convergence strategy
is significant and indicates a positive abnormal performance, however, only in three of
the four time intervals (event year, 1 year and 2 years), while the longest time horizon is
insignificant. As mentioned above positive abnormal performance is also evident in the
strategy Product in all four time intervals, showing extremely large test statistics.
Finally the two longest time horizons (2 years and 3 years) also indicate positive
performance in relation to the group motivated by the Overcapacity strategy, while in
the two shortest time intervals (event year and 1 year). The results from the strategy
Overcapacity yields negative abnormal performance. Despite only two of the four
time horizons being significant the one year horizon yield negative abnormal
performance while in the three year horizon evidence of positive abnormal performance
is revealed. The remaining strategies Geographic and Market reveal negative
abnormal performance in all of the four time intervals.
The combined strategies both yield significant results and in all tests except from one
the results are positive. In the case of Product + Market the tests show evidence of
positive abnormal performance. This means that the companys ability to generate cash
from their investments in assets increase following the merger or the acquisition. In
relation to R&D + Convergence the test statistics also yield positive results except for
the one year period following the event year where the test displays negative
performance. In the case of negative performance the companies within this group
become worse at generating cash from the asset investment in the year following the
merger or the acquisition.

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The robustness of the results from the t-test based on CF ROA needs to be evaluated. In
all test statistics the normality assumption is violated (Appendix G). The distribution is
far from bell shaped and do not nearly resemble a normal distribution. This violation
results in reduced power of the parametric test, and it is not recommended to base the
conclusions solely upon this test. In the case of cash flow return on assets the
independence assumption is assumed to be reasonable.
In the Wilcoxon Signed Rank test based on CF ROA only about a quartile of the test
statistics are actually significant, which is less than in the previous non-parametric tests.
These results are presented in table 12.1.5.221 where the main conclusion drawn is the
fact that most of the significant tests indicate the opposite of the parametric test above.
What previously seemed as positive abnormal performance now, by use of the nonparametric test, yields negative abnormal performance and vice versa. Due to violations
of the assumptions conclusion should be based on the Wilcoxon Signed Rank.

The total sample yields a negative abnormal performance in the event year and the year
following the event year. The only significant test statistics in the event year is the total
sample. In the one year horizon the negative performance as indicated by the total
sample is supported by the results from three of the six strategies Overcapacity,
Product and Market. In relation to these also the combined Product + Market yields
significant negative abnormal performance. In the two longest horizons (2 year and 3

21Sas file: Sas code Acc. Fig. Non-Parametric Total Wilcoxon (Event) Total CF

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year) only those companies in the group motivated by Geographic show evidence of
any long run operating effect from mergers and acquisitions. Both the test statistics for
the two year and the three year intervals show evidence of positive abnormal
performance. Only the indication of negative abnormal performance in relation to
Product + Market over the one year period following the event year is in accordance
with the parametric t-test.
The fifth performance measure, CF ROA, displays an overall negative performance,
which means that the cash generated from assets investments is decreasing. The
parametric t-test shows an overweight of significant test statistics, however, the
normality assumption is violated and the power and reliability of the test is not
adequate. Instead the non-parametric Wilcoxon Signed Rank test serves as basis for the
conclusions. This test shows only a few significant test statistics, which overall yield
negative abnormal operating performance. The conclusion of negative abnormal
performance in favour of value destruction is opposed to the conclusion from the
parametric t-test.
12.1.6. Tobins Q
The final performance measure Tobins Q is an indication of a companys growth
opportunities and the null hypothesis expects a Tobins Q equal to 1. A positive Tobins
Q test statistic indicates that the Tobins Q is larger than 1, which is transferred to
positive growth opportunities in the future and a positive abnormal performance, while
a negative Tobins Q test statistic prescribes a Tobins Q smaller than 1 which means
negative growth opportunities in the future and thus negative abnormal performance.
The results from the parametric t-test of Tobins Q are presented in table 12.1.6.1.22
As seen in the previous five performance measures the test statistics are primarily
significant which is also the case for Tobins Q.

22Sas file: Sas code Acc. Fig. Parametric Total T-test (Event) Total TQ

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The overall impression is of negative abnormal operating performance only four test
statistics stand out from the overall conclusion. The total sample is in all time periods
significant. The group motivated by a Convergence strategy stands out, as has been
the case in the previous performance measures. Except from the event year the other
three time periods (1 year, 2 year and 3 year) yield significant positive abnormal
performance. This means that in the group in which the acquiring company is motivated
by the Convergence strategy the test results indicate that these companies have
significant growth opportunities in the future. This is well in line with what is expected,
since the Convergence strategy corresponds to a strategy in which a company
performs a strategic move to a related industry or branch in which pronounced growth
opportunities are expected. Over the three year period following the event year, the
strategy Overcapacity shows positive abnormal performance, indicating in the same
way that the value of future growth options is increasing in response to the merger or
the acquisition.
The combined strategy of Product + Market yields results in accordance with evidence
from the two separate strategies. All four time intervals indicate negative abnormal
performance, and thus worsened growth opportunities following the merger or the
acquisition. R&D + Convergence shows evidence of negative abnormal performance,
which is in accordance with the results based on the R&D strategy. As has been the
case with the previous performance measures the Convergence strategy stands out
seeing that it displays positive abnormal performance in all time intervals except for
over the event year in which the performance is negative.

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In relation to the power and robustness of the test, the main impression is the same as
previously seen. The assumption of normality is violated in most of the t-test (Appendix
G). Only in the case of the three years following the event year does the Overcapacity
strategy yield a distribution that is approximately normal. The bell shape is evident even
though a large fraction of the abnormal returns is situated around zero. An abnormal
return of zero is an indication of a Tobins Q equal to 1. As mentioned, a Tobins Q of 1
is an indication that the growth opportunities are unaffected by the merger or the
acquisition, which corresponds to a zero value effect.
In relation to the independence assumption, which have been assumed fulfilled in
relation to the previous five performance measures, there might be some problems in
relation to Tobins Q. As mentioned in the analysis, stock prices are partly dependant on
each other and on general trends in the market making it doubtful that the stocks are
independent. Tobins Q is calculated by including the market capitalisation, which is a
measure based on the stock price, and therefore, it is likely that this performance
measure is influenced by other companies and general trends. This leads to the
conclusion that it is problematic to assume the different observations (M&A deals) are
independent.
Violation of both the normality assumption and the independence assumptions poses
difficulties in relation to the reliability of the test. At best a non-parametric test must be
included to verify the results. In case of differences between the non-parametric and the
parametric test, the most powerful results are those based on the non-parametric test.
The non-parametric Wilcoxon test in relation to Tobins Q shows that only a minor part
of the test statistics is significant, however, those that are significant present similar
conclusions as those revealed in the parametric tests. Table 12.1.6.223 present these
results.

23Sas file: Sas code Acc. Fig. Non-Parametric Total Wilcoxon (Event) Total TQ

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In the event year none of the performed tests yield significant results and thus nothing
can be said for certain in relation to whether or not Tobins Q is different from 1. In the
one year horizon the total sample shows significant negative performance which
indicates a Tobins Q between 0 and 1. Also the strategies Product, Market, and
R&D show negative performance in the year after the event year. The total sample is
also significant in the two year and three year periods after the event year and the results
yield negative abnormal performance. The only exception from the overall negative
performance from this non-parametric test is the two year test result for the
Convergence strategy. On this one occasion the test result indicate a Tobins Q larger
than 1 and is thus in accordance with the same test statistic in the parametric test, and
yields positive abnormal operating performance. On the two year horizon the R&D
strategy yields negative abnormal performance. The same result is detected on the three
year horizon for both R&D and Product.
The combined Product + Market yields negative performance in the three periods
following the event year, indicating that the growth opportunities of the companies
within this group are reduced.
The Non-Parametric Wilcoxon Signed Rank test yields fewer significant results than the
corresponding parametric test; however, it is worth noticing that in relation to the
significant tests the conclusions drawn from the non-parametric test are the same as
those drawn from the parametric test. All, except for one of the significant test statistics,
indicate negative abnormal operating performance. This corresponds to a Tobins Q

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between 0 and 1 indicating reduced growth opportunities in relation to companies


engaging in M&A. However, the Convergence strategy stands out in revealing
increased growth opportunities.
Tobins Q, the final performance measure, displays evidence in favour of negative
abnormal performance in relation to the parametric as well as the non-parametric test.
However, the parametric test is influenced by violated assumptions in relation to
normality as well as independence. Therefore, the most powerful and reliable results are
those drawn from the non-parametric test. In the Wilcoxon Signed Rank test only a
minor fraction of the test statistics is significant, while all these except for one display a
negative abnormal performance, which is translated into reduced growth opportunities
in the future, and therefore, value is actually destroyed when engaging in M&A.
12.2. Examination of differences between strategies based on operating performance
The analysis of the six performance measures has indicated both negative and positive
abnormal performance and this lack of consensus in either direction might imply that
differences exist between the strategies. Therefore, an F-test for differences between the
means is conducted in order to detect differences.
The F-test is conducted in accordance with the specifications in section 7 and the F-test
is submitted to stringent assumptions. The main impression from this original F-test is
that the normality assumption is violated which result in a lack of robustness and power
of the F-test (Appendix I). To remedy the nonnormality in the distribution a
transformation of the CARs is performed. In this case the transformation consists of
raising each CAR to the power of 0.5 and thereby performing a new F-test based on the
transformed data. The results of the F-test based on the transformed data are presented
in table 12.2.1.24
Based on the results from the F-test it appears that evidence of differences between
strategies is detected in seven incidents. ROA (EBIT) yields significant results over the
two year and three year periods following the event year, while ROA (EBITDA) yields
a significant result in the two year period after the event year. In relation to the sixth
performance measure, Tobins Q, the F-test yields significant results over all four time

24Sas

file: Sas code Acc. Fig. ANOVA F-test ROA EBIT Trans - (Event)

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intervals. As mentioned previously, the F-test established the basis for the existence of a
difference between the CARs provided that the normality assumption and the
assumption of homogeneity are fulfilled. The assumptions are verified in the following
and afterwards the differences will be specified. In the following focus will be upon the
significant test statistics from the F-test.

Before focusing upon the pair wise difference tests the assumptions of the F-test based
on the transformed data is verified. In relation to the ROA (EBIT) the normality
assumptions is valid on both two year and three year horizons. The test for variance
homogeneity by means of Levenes test confirms homogeneity by not rejecting the null
hypothesis of variance homogeneity. The ROA (EBITDA) indicates that both
assumptions are valid in the two year horizons. In relation to the ROA (EBITDA) the
three year period after the event year yield a conclusion which is the opposite of the
conclusion found by use of the original data, which means that the test yields an
insignificant result after having transformed the data. Seeing that the assumptions are
fulfilled the conclusions drawn from the F-test are reliable, however, in the case of the
ROA (EBITDA) in which the conclusions are opposite depending on whether the data is
transformed or not. Transforming the data overcomes problems of nonnormality and
therefore, the conclusions from the transformed F-test are preferred.
Detecting significant differences between strategies is done by means of LSD,
Bonferroni and Tukey. However, the LSD method is the only one to yield significant
differences. In relation to ROA (EBIT) on a two year period following the event year,

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the test indicates that the strategies Convergence and Overcapacity outperforms all
three of the strategies Market, R&D and Product + Market. In all cases
Convergence and Overcapacity show evidence of positive abnormal performance,
compared to the opposing three strategies that yield negative abnormal operating
performance. In addition the LSD test also indicates a difference between R&D and
Product. In this pair wise difference test Product outperforms R&D even though
both strategies yield negative abnormal performance.
In relation to ROA (EBIT) over the three year period the same trend as indicated from
the two year period is also present in this case. The strategies Overcapacity and
Convergence significantly outperform the strategies of Product, Market, R&D
and Product + Market. Again, both Overcapacity and Convergence yield positive
abnormal performance, while the other four show evidence of negative performance. In
addition to this, Convergence equally outperforms the Product strategy. ROA
(EBITDA) over the two year period indicates that R&D is outperformed by the
strategies Convergence, Overcapacity, Product and Product + Market.
Furthermore, Market is outperformed by Overcapacity.
As the LSD test is the only one of the three pair wise difference tests that is able to
detect any differences between strategies, it should be kept in mind that the LSD test is
not without drawbacks. The main drawback of the LSD test is the fact that the
possibility of type I errors is severe, which means that the risk of rejecting the null
hypothesis when it is actually true is present. This might in fact indicate that too often
does the LSD test indicate a significant difference when none actually exist. The
preferred pair wise difference test is Tukey, which is a conservative measure that might
result in not observing a significant difference when one actually exists.
In the case of Tobins Q the F-test based on transformed data indicated that differences
exist between strategies in all four time intervals. However, to be able to rely upon the
results the assumptions must be verified. In the case of this performance measure the
transformation does not completely overcome problems in relation to the assumptions.
Over the event window the normality assumption is met. In this case it is not possible to
draw a conclusion in favour of variance homogeneity, which means that the variances
are not the same and so the results are not robust. On the one year and the two year
periods after the event the distributions are approximately fulfilled indicating that it is

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expected that a difference exists in these two cases. Finally, over the three year period
the assumptions are met and a difference is observed.
In detecting between which strategies differences exist, the conclusion in relation to
Tobins Q is the same on both the one year and the two year time periods after the
event. It is evident in both periods that R&D is outperformed by all other strategies
indicating that the growth opportunities are smaller following an R&D investment,
which is strictly opposite of what was expected. This conclusion is based upon two of
the pair wise difference tests (Bonferroni and Tukey). The LSD method indicates more
significant results than the other two methods. This is primarily illustrated in relation to
Convergence which outperforms the strategies Market, Product, Product +
Market and R&D + Convergence.
Tobins Q over the three year period following the event year do not yield the same
amount of significant differences as the previous two periods. However, the difference
according to Bonferroni and Tukey is still in relation to R&D. This means that R&D
is outperformed by the strategies Overcapacity and Convergence. As mentioned
above the preferred pair wise difference measure is Tukey, and the significant results
based on this method is likely to be valid. Furthermore, the results from Tukey are
supported by those from Bonferroni, which yield the same results.
The test for differences was overall based on transformed data seeing that the
assumptions were violated in relation to the original data. The overall conclusion in
relation to the test for differences not all of the six performance measures yielded
significant differences between strategies. However, for ROA (EBIT), ROA (EBITDA),
and Tobins Q the empirical work supported the expectation of difference between
strategies. For ROA (EBIT) on the two year and three year periods evidence show that
the strategies Convergence and Overcapacity outperform the remaining strategies
(except for Geographic) and yield positive performance. Contrary to this ROA
(EBITDA) indicates that the strategy R&D is outperformed by all other strategies and
displays negative performance. In relation to Tobins Q (all 4 time intervals) R&D is
outperformed while Convergence and Overcapacity outperform the other strategies.
Based on the test for differences it is likely that differences exist, however, no
difference between Market and Product is evident, and so the rationale for separating
the Product + Market strategy presented by Bower (2001) is not present.

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12.3. Summary of the empirical results in relation to operating performance


The analysis of operating performance presented above is based on six performance
measures: ROA (EBIT), ROA (EBITDA), ROS (EBIT), ROS (EBITDA), CF ROA, and
Tobins Q, which are applied to detect abnormal performance within four different time
intervals (the event year, 1 year, 2 years, and 3 years after the event year). The first part
of the analysis (section 12.1) focuses upon detecting abnormal performance based on
strategies over different horizons to establish support for hypotheses I, IV, and V while
the second part of the analysis (section 12.2) analyses for differences between strategies
in order to find evidence in support of hypothesis II. In the following focus will be upon
the main conclusion that can be drawn from the different performance measures, and so
it should be kept in mind that in some cases the test statistics do oppose to the
conclusion presented below.
In detecting abnormal operating performance the analysis is conducted by means of a
parametric t-test as well as a non-parametric Wilcoxon Signed Rank test. Overall, the
largest amount of reliability and power to the tests is related to the Wilcoxon test, seeing
that the assumptions related to the t-test are violated for all six performance measures as
well for all four time intervals. The empirical results from Wilcoxon indicate that a
fraction of the test statistics are insignificant, and therefore, it is not possible in these
cases to detect abnormal performance different from zero, which corresponds to the fact
that M&A activity have no effect upon the acquiring firm. In comparing to the results
from the six operating measures the main impression is that no actual consensus exists
between the performance measures. However, in focusing on one performance measure
at a time some trends can be detected in relation to whether or not value is created. The
performance measures ROA (EBIT), CF ROA, and Tobins Q show evidence of
negative abnormal performance, which translates into support of hypothesis I and IV.
Based on these three performance measures it appears that engaging in M&A destroys
value for the acquiring company in the longer term. However, ROS (EBIT) displays
negative performance in the two shortest time intervals, while displaying positive
abnormal performance in the two longest time intervals. Finally, ROA (EBITDA) and
ROS (EBITDA) indicate positive abnormal performance, which means that in relation
to these two performance measures the effect from M&A in relation to operating
performance is positive value is created.

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The overall trends presented above indicating both positive and negative abnormal
performance supports the hypothesis that differences between strategies might actually
exist. To verify if differences exist, an F-test is conducted as well as the pair wise
difference methods. As with the t-test the F-test is subject to some assumptions that
must be fulfilled. The normality assumption is violated and in order to remedy the
nonnormality the data is transformed by raising the abnormal returns to the power of
0.5. In relation to the transformed data, the assumptions are met and the results can be
trusted. Only in relation to three of the six performance measures ROA (EBIT), ROA
(EBITDA) and Tobins Q does the F-test indicate that differences exist between
strategies. With respect to ROA (EBIT) in the two year and three year periods after
the event year - it is evident that the strategies Convergence and Overcapacity
outperform the remaining strategies except for Geographic. Reversely the strategy
R&D is outperformed by the other strategies in the case of ROA (EBITDA) over the
two year period following the event. Finally, in relation to Tobins Q evidence shows
that R&D is outperformed by the remaining strategies, while the Convergence
strategy outperforms the other strategies except for Overcapacity and Geographic
strategies.
Based on the examination of differences it appears that the performance of the different
strategies differ to some extent. The strategies Overcapacity and Convergence seem
to perform better than the remaining strategies indicating that value is in fact created in
these two cases. Furthermore, the results also show that the strategy R&D is
outperformed by the remaining strategies indicating that those companies engaging in
M&A in relation to R&D performs worse than other companies with different motives.
Finally, it should also be mentioned that in relation to the operating performance it has
not been possible to detect any differences between the strategies Market and
Product which supports the decision by Bower (2001) to combine the two into one
strategy, namely Product + Market.
Despite the fact that the tests only yield significant results in part of the test statistics it
is still considered that in relation to operating performance it is possible to detect an
abnormal operating performance different from zero. Furthermore, it is also likely to
detect some differences in relation to value creation between the different strategies.

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13. Evaluation of the data, the research approach, and the empirical results
As seen in section 11 and section 12 some of the empirical results are opposed to what
was expected and presented in the hypotheses, which were based on the results of
previous empirical work. Even though most of the previous empirical work has been
conducted upon US based companies, it was expected that the UK and the Scandinavian
data would yield similar results. This was not the case, and therefore, it would be
obvious to make an attempt to detect the reasons for the dissimilarities. However, a
thorough analysis of these reasons is outside the scope of this thesis, despite the fact that
it would provide increased power to the conclusions. The following will instead be an
attempt to detect and present factors that are likely to have influenced the results and
might be part of the explanation for the presence of dissimilarities. This discussion is
threefold and concerns the selected data, the research method and the empirical results.
In relation to the data that constitute the sample some potential problems could be in
relation to the sample sizes of each of the strategies, the selection bias and the time
period. The deals were divided into the different strategies based on documentation
from articles, annual reports, press releases etc. However, a division performed this way
is always subject to some potential bias, despite the fact that great attention has been
exercised in this part of the thesis. Furthermore, the division between strategies have not
been equal and perhaps this difference in composition between strategies has affected
the final analysis. In a mayor part of the previous empirical work, the period of analysis
have been much longer than in the case of this study, which might also influence the
results when comparing them to previous work.
The potential problems relating to the research method are considered to be the
following two aspects: the creation of the benchmark in relation to operating
performance and the event-induced variance increase. Benchmarking is made
exclusively upon past performance (ROA (EBIT)) without regard to the industry (SIC
codes). Furthermore, as mentioned in section 8.2 the benchmark group created based on
ROA (EBIT) is the same that is used over time and across performance measures. This
results in the fact that the benchmark group in relation to 10% of the ROA (EBIT) is
likely not to be the same if composing a group based on 10 % of ROA (EBITDA),
ROS (EBIT), ROS (EBITDA), CF ROA, or Tobin's Q respectively. Therefore the
conclusions drawn based on the last five performance measures might not be

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completely reliable, and a potential bias to the conclusions is likely. The problem in
relation to not adjusting for event-induced variance increases relates to rejecting the null
hypothesis too often, which might also influence the results.
The above mentioned potential problems might have influenced the results in one way
or another or not at all. In comparing the empirical results from this thesis to previous
work some dissimilarities exist in particular in relation to the analysis of CF ROA.
These results are completely opposite of what have been detected previously. It is
considered that this dissimilarity is at least partly explained by the way in which the
benchmark is created. Furthermore, consideration in relation to the sample size must be
made, it might be possible that a larger sample would have made the results more
reliable; however, it is important to remember that more reliable results might not lead
to being able to detect any abnormal performance. A large fraction of previous literature
supports the fact that the acquiring company performs just about the same as the market,
and so no abnormal performance can be detected.
Despite potential pitfalls which might, if addressed, have improved the power and
reliability of the empirical results it is still considered that the method and the empirical
work in relation to this thesis is of high standard, therefore, the conclusions drawn is
credible and can be used in further work. In relation to the drawback or pitfalls
mentioned here these serve as potential improvements in further research.

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14. Conclusion
The overall objective of this thesis was to perform an analysis of the performance
regarding the acquiring companies in relation to a merger or an acquisition based on
data from the UK and Scandinavia. The analysis of post performance was conducted by
means of both daily stock prices and six operating measures. In order to answer the
overall research question of whether or not an abnormal performance can be detected in
relation to a merger or an acquisition the analysis was offset by the strategic rationale
behind a particular deal. The division into strategies was motivated by the assumption
that the success of a merger was likely to be influenced by the strategic rationale behind
the decision to engage in a merger or an acquisition. Therefore, it was also examined
whether or not it was possible to detect difference between the strategies.
The overall research question was evaluated based on six hypotheses in relation to the
expectations towards the empirical results. In the following each hypothesis is
addressed separately.
Due to the violations of the assumptions in relation to the parametric t-test the
conclusions is primarily based on the results from the non-parametric test.
In relation to hypothesis I concerning value destruction the analysis showed some
dissimilarities, compared to the hypothesis. In most cases it was not possible to detect
an abnormal performance different from zero. However, despite this overall trend, the
test in which a difference from zero abnormal performance was displayed, the main
impression was of negative abnormal performance, which thus indicated that the
acquiring company lost value after engaging in a merger or an acquisition.
The results in relation to the analysis of stock price performance based on the
parametric t-test yielded the impression that value was in fact destroyed. However, in
comparing this conclusion with the non-parametric test results dissimilarities existed.
The only test displaying an abnormal performance different from zero was the strategy
Geographic which indicated a positive effect in the stock prices over the three months
period. The remaining test statistics were insignificant and no conclusion regarding the
presence of abnormal returns could be found.

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The analysis of abnormal operating performance showed similar results as the analysis
of the stock prices. In most cases the parametric test yielded significant results (in four
of six the performance measures were negative), however, the non-parametric test
yielded fewer significant tests and mostly favoured the idea of zero abnormal
performance. The tests, which were significant, yielded different results depending on
the performance measure. ROA (EBIT), the most reliable measure, indicated negative
abnormal performance, and therefore, supported the expectations of hypothesis I.
Hypothesis II presented the expectation of differences between the strategies in relation
to their performance. Despite the fact that it was not possible to uniquely determine that
differences existed the evidence from the analysis of both stock prices and operating
measures indicated that in some cases it is possible to draw a conclusion in favour of
dissimilarities in the performance. In relation to the analysis of the stock price
performance evidence showed that it was not possible to determine differences in all
five time intervals, but only in the three longest horizons (3 months, 6 months and 1
year) and it appeared that this difference was detected between the strategies
Overcapacity and Product + Market. The difference between these two strategies
supported the expectations in hypothesis II, however, differences were not detected
between several strategies, which might in fact have indicated that despite the motive
for the merger or the acquisition the effect that could be detected in the stock market
was overall similar despite the different strategies.
In relation to the operating performance some differences were detected between
strategies even though this observation was supported by only three of the six
performance measures. The three performance measures that revealed evidence of
difference were ROA (EBIT), ROA (EBITDA), and Tobins Q. The impression based
on the limited evidence indicated that the strategies Overcapacity and Convergence
performed better than the remaining strategies while R&D was outperformed by the
other strategies.
Overall, some support of hypothesis II was detected indicating that the strategy
Overcapacity performed better when compared to other strategies and R&D
performed worse at least in the longer term in excess of three months. This indicated
that differences between the strategies could in fact be present though it was not
possible to establish consensus between the performed analyses.

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Hypothesis III expecting a positive effect around the event day was supported by the
parametric t-test. Both in relation to the combined sample as well as most of the
separate strategies indicated a positive effect on the 5 day period around the event
day. The non-parametric tests yielded little evidence in relation to whether or not an
actual effect can be detected from the announcement of a merger or an acquisition. The
Generalized Sign test did in relation to the strategy Geographic support the indication
of a positive effect over the event window, while at the same time it indicated a negative
effect in relation to the strategy Product + Market. Due to possible violations of the
assumptions attached to the parametric test it was questionable to rely only upon these
results, however, they still gave an impression of the fact that value was created or
detected in the stock prices following the announcement of a deal.
Hypothesis IV took the time horizon a step further and expected losses in relation to the
remaining time intervals evaluated on stock prices. The parametric t-test yielded
significant results in most cases, however, due to violations of the attached assumptions
the final evaluation was based upon the non-parametric tests. They all three showed
similar results indicating that it were not possible to detect an abnormal performance
different from zero. Therefore, it could at best be expected that the acquiring company
followed the market and thus it was unable to create an abnormal return. The evidence
from the non-parametric tests thus supported this hypothesis concerning no reaction in
the stock prices within the intervals of one month, three months, six months and one
year after the event can be detected.
Hypothesis V related to the operating performance measures expected a difference
between those measures based on earnings and the one based on cash flow. The main
trend concerning the earning based performance measures was a negative abnormal
performance and therefore in favour of hypothesis V indicating that a merger or an
acquisition destroyed value at the acquiring company. The operating performance
measure, ROS (EBITDA), conversely indicated an increase in the operating
performance. The opposite results found by means ROS (EBIT) and ROS (EBITDA)
indicated that the assets the acquiring company assumed after the merger or the
acquisition had a significant impact on the company earnings. In relation to the CF
ROA the overall tendency was a loss of value to the acquiring company. This was in

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contrary to the expectation in hypothesis V but in favour of hypothesis I regarding value


destruction.
Hypothesis VI concerning the expectation of the parametric and the non-parametric test
to yield similar results was not meet because as already mentioned above, the
parametric t-test was accompanied by some assumptions that needed be fulfilled in
order for the test to yield reliable results. Problems in relation to these assumptions
being violated was present both with respect to the stock prices and the operating
performance measures, though, they were considered more severe in relation to the
operating performance measures. Seeing that the assumptions were violated emphasis
that the conclusions should be placed upon the non-parametric tests and results drawn
from the parametric test in should be treated with caution. They might serve as an
indication of the correct results, however, it was not for certain that the conclusions
from a parametric test corresponded with those from a non-parametric test in these
cases emphasis should be on the non-parametric test.
To sum up, the main indications and conclusions drawn from this empirical work was
that in most cases it was not possible to detect an abnormal performance in relation to a
merger or an acquisition and in the cases where an abnormal return was detected the
acquiring company lost value. In relation to the Total sample a positive abnormal
return around the event period, by use of daily stock prices, was detected whereas the
remaining time intervals revealed negative abnormal performance. By use of operating
performance measures, the main tendency concerning the Total sample was negative
abnormal performance in the short-run and positive abnormal performance in the longer
run. When differences between the conclusions drawn from the analyses conducted by
means of daily stock prices and those based on operating performance measures the
conclusions from the analyses based on daily stock data was considered the most
reliable, due to possible presence of manipulation within the operating figures. When
examining the different strategies separately the conclusion was in favour of value
destruction or no abnormal performance different from zero. Within the analyses
conducted to detect differences between the abnormal performances within each
strategy no unanimity was found. However, indications of the strategy Overcapacity
outperforming the other strategies and the strategy R&D being outperformed by the
remaining strategies were present. Overall, the findings are in accordance with previous
empirical work and therefore the conclusion can be seen as reliable.

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15. A final perspective on value creation in M&A


The overall conclusion from the empirical work in this thesis in relation to the creation
of value based on mergers or acquisition is in the best case an abnormal performance of
zero or at worst a negative abnormal performance. It appears that this conclusion has
been presented in previous work as well; however, it does not seem to be taken into
account when companies actually engage in a merger or an acquisition. Despite this
general trend from the empirical work it seems that the overall M&A activity actually
increases over time regardless of evidence in favour of zero or negative abnormal
performance. Therefore, it is likely that the overall goal of value creation is in fact not
the only aspect in explaining the M&A activity. In relation to the strategy 'Overcapacity'
the main motive for engaging in mergers or acquisitions is primarily in order to follow
suit in the industry consolidation. Therefore, the main focus in this case may not be
actual value creation, but more a focus in relation to survival within the industry.
This motivation guided or pushed forward by competitive needs in order to secure
survival might be considered value in itself, even though; it cannot be measured in the
stock price or the accounting figures. This motivation for M&A activity drawn by the
competitive environment presents a somewhat different criterion for success. A criterion
in which a successful merger or acquisition is one in which value needs not be created
as long as the company do not loose compared to the market, and so it is in this case
satisfactory to follow the market and not necessarily to beat the market. In taking this
perspective on the effect and success of a merger or an acquisition a zero abnormal
performance compared to the market is satisfactory as long as the company after the
merger or the acquisition do not perform worse than the market. In the case of the
strategies 'Convergence' and 'R&D' the motive for engaging in M&A activity might also
be more than the value creation itself. 'Convergence' is a strategic move into a new, but
related industry in which the potential for growth in the future is expected. Therefore, in
this case a successful merger or acquisition is in the case when the acquiring company is
able to gain a foothold and potentially get leading position in this new industry. Also in
relation to the strategy 'R&D' the motivation is more than simply value creation. In this
case the objective is to gain access to better R&D capabilities than those present in the
company before the merger or the acquisition and thereby increase the product
development process and strengthen the market position.

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Despite the fact that the companies are likely to be motivated by more than value
creation itself the empirical studies in relation to the performance following an M&A
transaction are still relevant and contribute with a theoretical perspective of this debate.
However, it seems likely that in explaining the effect of a merger or an acquisition it is
relevant to include the strategic rationale for the deal. This strategic rationale is likely to
be important in setting up the criteria for success, and furthermore, these criteria are
likely to diverge depending on the strategic rationale. In the future, it would be
interesting if research focused upon examining methods to measure the non-economic
effect of the strategic rationale, which must be what motivate companies to engage in
the M&A activity, since no value creation can be detected.

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99

Appendices

Appendix A: References used to divide the 959 deals into the six strategies.
Appendix B: Total list of deals Daily Stock Prices
Appendix C: Total list of deals Accounting Figures
Appendix D1: Example of SAS code (T-test) used in relation to daily stock prices
Appendix D2: Examples of SAS code (Rank) used in relation to daily stock prices
Appendix D3: Example of SAS code (Sign) used in relation to daily stock prices
Appendix D4: Examples of SAS code (Gen. Sign) used in relation to daily stock prices
Appendix D5: Example of SAS code (ANOVA) used in relation to daily stock prices
Appendix E1: Examples of SAS code (T-test) used in relation to accounting figures
Appendix E2: Examples of SAS code (Wilcoxon) used in relation to accounting figures
Appendix E3: Examples of SAS code (ANOVA) used in relation to accounting figures
Appendix F: Normality in AR for the Geographic strategy (Daily Stock)
Appendix G: Normality in AR for the Geographic strategy (Acc. Fig.)
Appendix H: Assumptions regarding the ANOVA for daily stock prices (Event)
Appendix I1: Assumptions regarding the ANOVA for acc. fig., ROA (EBIT) (2Y)
Appendix I2: Assumptions regarding the ANOVA for acc. fig. (trans.), ROA (EBIT) (2Y)

Appendix A: References used to divide the 959 deals into the six strategies.
Deal no.
1 / 54242

Acquirer
Cable & Wireless plc
(Communication)
Tesco plc
(Retail)

Target
Belgium NV

3 / 54979

NSB RETAIL
SYSTEMS PLC
(Retail)

REAL TIME CONTROL


PLC

4 / 55045

National Express group


plc
(Transport)

ATC group

5 / 55098

Century Life

6 / 55209

Wolseley plc
(Retail of building
supply)
Baltimore
Technologies plc
(IT-Services)

Old multual Life


Assurance company ltd
Terry companies

2 / 54861

7 / 55348

8 / 55480
9 / 55556

Rettig Heating group


(Radiatorer)
Lassila & Tikanoja Oyj
(Environmental
solutions)

Somerfield plcs 45 larger


stores

GTE CyberTrust Solutions


Inc.

Baxis radiator business

Reference
Cannot find a reference. According to Zephyr should Belgium NV
be a fruit trader.
Listed
http://www.tescocorporate.com/page.aspx?pointerid=3DB554FCAE
344BD88EEEEFA63D71B831 Because Tesco buys another
supermarket chain at the home market, and according the market
description, the retail market is characterized by overcapacity Overcapacity
Delisted
http://boards.fool.co.uk/Message.asp?mid=6470496 Because NSB
buys another supermarket chain at the home market, and according
the market description, the retail market is characterized by
overcapacity - Overcapacity
Listed
http://www.nationalexpressgroup.com/nx/oc/overview/history/ and
http://www.nationalexpressgroup.com/nx/oc/strategy/ Because they
already is present in the USA but add a new bus company Product
They are acquired by Phoenix Life Limited who again gets acquired
by another parent company.
Listed
http://www.wolseleyinc.ca/about/history.htm Because they already
is present in the USA but add a new product line - Product
Not listed
http://www.thefreelibrary.com/Baltimore+Technologies+to+Acquire
+GTE's+CyberTrust.-a058609997 Because there is very little
overlap between products and BT became global market leader
Product
Not included because we cannot get enough financial data.

WM Ymparistopalvelut Oy Listed
http://www.lassilatikanoja.fi/ArticleStorage/display.php?id=10645&p=4 They become

10 / 55764

Getty Images inc

11 / 55996

Arriva plc
(Transport)

12 / 56006

Merkantildata ASA
(IT-providor)
InterX plc
Keskininen
Elkevakuutusyhti
Ilmarinen
(Pension)
Merkantildata ASA
(IT-Services)

13 / 56014
14 / 56208

15 / 56255

16 / 56363

Visual Communications
group
MTL services
Provida ASA
Cromwell media ltd
Aleksia Oyj

Avenir SA

TYCO
ELECTRONICS LTD
(Electronic company)
Allied Dunbar
Assurance plc
3i group plc
(venture capital)

CRITCHLEY GROUP
PLC

19 / 56655

Nokia Oyj

Network Alchemy inc

20 / 56363

SAGE GROUP PLC,


THE (SGE.L)
(Financial &
Accounting software
developer)
Specialist Computer
holdings plc

BEST SOFTWARE INC.

17 / 56396
18 / 56600

21 / 56832

Abbey Lifes agency


network
The Technologieholding
GmbH

Buhrmann Computer
reselling and distribution

market leaders at their home market regarding environmental


services Overcapacity
It is an American company and their financial reports are not
informative.
Listed
http://www.arriva.co.uk/arriva/en/about_arriva/history_growth/timel
ine/ They buy another bus company Overcapacity
Department was sold in 2002.
Does not exist after 2001
Not listed
http://www.ilmarinen.fi/Production/fi/x_pdf_liitteet_julkaisut/vuosi
kertomus_2000_en.pdf Because they have real estate but increases
the business unit by this deal Product
Listed
http://www.ementor.com/Annual_reports/annual_report_com/1999/
dette_er_merkantildata.htm Because the deal increases their forces
regarding internet and e-business Product
Not listed
http://www.tycoelectronics.com/aboutus/history.asp Because they
acquire more products - Product
Was bougth by Zurich Life in 2004.
Listed
http://www.3igroup.com/shareholders/presreports/reports/2000/
Because the increases their venture capital and the number of
employess in Germany - Product
Listed
http://www.nokia.com/A4136002?newsid=775433 Because Nokia
can offer internet services due to this deal - Convergence
Listed
http://www.investors.sage.com/strategy/growth_strategy/acquisition
_strategy/ Because they already has business in the USA, but the
increases the amount of products - Product
Not available at the exchange and the financial reports are only
available back to 2004 and the deal takes place in 2000.

22 / 57144
23 / 57196

Bradford & Bingley


Building Society
(Mortgage provider)
BASS PLC
(Soft drink provider)

arm
Mortgage Group Holdings
BRISTOL HOTELS &
RESORTS INC.

24 / 57324

Tata Tea (GB) ltd

Tetley group ltd

25 / 57359

Newmedia spark plc


(Venture capital)

Cell Internet Commerce


Development AB

26 / 57367
27 / 57465
28 / 57471

IKO UK ltd
Orchardflint plc
Westminster
Healthcare ltd
(Healthcare)

Ruberoid plc
Meyer International plc
Priory healthcare ltd

29 / 57485

Caradon plc
(Cable manufacture)

Brand-Rex ltd

30 / 57549

Pendragon plc
(Car dealership)

Lex service plc

31 / 57594

Smiths Industries plc


(Manufacture of
aircraft utilities)

Marconi Actuation systems


inc

32 / 57721

Assa Abloy AB
(Lock and security

Yale Locks business

Listed
According to Zephyr are they both mortgage providers present in the
British market Product
Not listed
http://www.allbusiness.com/personal-finance/investing-stockinvestments/914965-1.html Because a soft drink provider buys a
hotel chain - Convergence
Not available at the exchange and the financial reports are only
available back to 2001 and the deal takes place in 2000.
Listed
http://www.sparkventures.com/default.asp?section=399&page=1933
Because the target is located in a primary market and produces products which is of Sparks main interest - Product
Cannot find any info.
Does not exist anymore.
Not listed
http://www.ukbusinesspark.co.uk/wee21227.htm Because a nursing
home is planning to offer stress management programs to companies
- Convergence
Listed
http://www.generalcable.com/GeneralCable/enUS/Company/History/ Because they buy the company to add it to
their product line - Product
Listed
http://www.pendragonplc.com/CorporateProfile/PendragonHistory.a
spx Because they operate in the car industry which is characterized
by overcapacity and the deal increases their market leader position Overcapacity
Listed
http://www.smithsgroup.com/siteFiles/resources/reportAttachments/execsummary2000
.pdf They are increasing their product line regarding aircraft utilities
- Product
Listed
http://www.assaabloy.com/en/com/About-Assa-Abloy/Market--

door manufacture)
33 / 57786
34 / 57790

SMG Jersey
Shanks group plc
(Waste Management)

Ginger media group ltd


Waste Management
Nederland BV

35 / 57835

BP AMOCO PLC
(Oil and gas company)

BURMAH CASTROL
PLC

36 / 57857

Horace Small Apparel


plc
Skandia life insurance
company real estate
investments ltd
FIRST
TECHNOLOGY PLC
SEMA GROUP PLC
Post office ltd, the

Redbus Interhouse plc

37 / 57859
38 / 57879
39 / 57948
40 / 58034
41 / 58231
42 / 58418

DILIGENTIA AB

CITY TECHNOLOGY
PLC
LHS GROUP INC.
Nederlandske packet
Dienst
MERITANORDBANK NORDEA COMPANIES
EN GROUP
DENMARK
Sdra cell AB
Norske Skog AS Tofte
(Pulp producer)
pulp plant

43 / 58540

Pearson plc
(Publisher)

Dorling Kindersley
holdings plc

44 / 58698

London Electricity
group plc
Information highway
AB
Telewest
Communications plc
Johnson Service group
plc

Sutton Bridge power


station
Berens/partner

45 / 58839
46 / 59176
47 / 59185

Flextech ltd
Semara holdings plc

Brands/All-Brands/ Because Yale Locks still exists under their own


name, but benefits from the presence of ASSA - Geographic
Does not exist anymore.
Listed
http://www.shanks.co.uk/shanks/about/Background.jsp?tn=1&sn=4
They enter a new country - Market
Listed
http://www.bp.com/extendedsectiongenericarticle.do?categoryId=10
&contentId=7036819 Because they increases their product line
called lubricants - Overcapacity
They are not at the exchange and the financial reports are not
available.
It is a subsidiary which buys another subsidiary.
The company is bought by another company in 2006.
The company is bought by another company later.
The company is owned by the government and no data available
regarding the deal.
The company is bought by another company later.
Not listed
http://www.sodra.com/en/About-Sodra/Sodras-history/ Because they
increases their capacity to be able to satisfy the demand - Product
Listed
http://www.pearson.com/index.cfm?pageid=32 Because this deal
supported the branch regarding the consumer publishing business Product
They are not at the exchange and the financial reports are not
available.
They are not at the exchange and the financial reports are not
available.
They are not at the exchange and the financial reports are not
available.
Listed
http://www.johnsonplc.com/profile/company-history/ Because they

(Textile rental)
48 / 59203

Britax International plc

Bellingham International

49 / 59424

AMEC PLC
(AMEC)
(Civil engineering
services)
Royal Bank of
Scotland group plc, the
(RBS)
(Venture capital)
Statkorn Holding
Dairy Crest Group plc

AGRA INC.

50 / 59429

51 / 59455
52 / 59531

53 / 59744

Scottish & Newcastle plcs


481 leased pubs
Ewos fishfeed unit
Unigate plcs dairy and
cheese business

British land company


plc, the
CAPITAL RADIO
PLC
Abbey National
Treasury Services plc
Marconi plc
(telecommunication
equipment
manufacturer)
British American
Tobacco plc
John Mansfield Group
plc

Five Lease Finance


companies
BORDER TELEVISION
PLC
Porterbrook ltd

59 / 60443

CapManOyj
(Venture Capital)

VestcapOyj

60 / 60448

Valmet Corporation

Beloits service and

54 / 59809
55 / 59913
56 / 60034

57 / 60165
58 / 60237

Metapath Software
International
SCA Tobacco Corporation
Rexam plcs printing
division

become market leaders due to this deal within the sector of textile
rental - Overcapacity
They are not at the exchange and the financial reports are not
available.
Listed
http://www.amec.com/uploadfiles/report2000.pdf Because their
services and their position in the market get better due to this deal Product
Not included because managing pubs is to fare from their main
activity.
Does not exist anymore.
Listed
http://www.dairycrest.co.uk/ourbusiness/ourhistory.asp Because this
deal made them the leading dairy company and because the retail
industry is a mature industry - Overcapacity
Cannot find a description to support the deal.
Capital Radio is bought by another firm later on.
Not included because we cannot find enough documentation.
Listed
http://query.nytimes.com/gst/fullpage.html?res=950CE2D91E31F93
2A15757C0A9669C8B63 Because a telecommunication equipment
manufacture buys the knowhow regarding wireless software - R&D
Not included because according to Zephyr the company is a
distributor located in Japan.
Listed
http://www.communisis.com/assets/x/50011 Because the timber
company become an information management and communication
group Convergence
Listed
http://www.capman.fi/En/AboutCapMan/History/ Because they
merged with Vestcap go gain marketshares - Market
Listed

(Paper manufacture)

aftermarket business

61 / 60629

Cookson Group
plc(Ceramics, precious
metals, electronics)

ACHEM Laminates

62 / 60641

Scottish metropolitan
Property plc

64 / 61009

Haslemere Estates plc


(Real estate
investment)
AGIP VENTURES
PLC
Xansa PLC

65 / 61036

Ocean Group plc

NFC plc

66 / 61052
67 / 61060

PowerGen Plc
CGU plc
(The new name is
Aviva and they work
with insurance)
Information Highway
AB
Airtours

LG&E Energy Corporation


Norwich union plc

63 / 60649

68 / 61066
69 / 61069

BRITISH-BORNEO OIL
& GAS PLC
Druide group

http://www.metsopaper.com/?ReadForm Because the acquired firms


keep their names Geographic
Listed
http://www.cooksongroup.co.uk/cookson/pages/investors/irpress?ref
=46 Because they get production in Asia but at the same time the
new production facilities result in lower costs - Market
Not listed
According to Zephyr. The target continues as a subsidiary Geographic
Is merged into ENI in 2003.
Not listed
According to Zephyr. Because a IT Outsourcing Services
company buys a business management consultancy Convergence
Not listed
http://findarticles.com/p/articles/mi_hb4866/is_200005/ai_n1790637
7 Because this merger results in the second largest business within
this mature transport industry - Overcapacity
n.a. Sold after 1 year.
Listed
http://www.aviva.com/index.asp?pageid=167 Because they gain
significant market shares - Overcapacity

Connecta AB (old)

The company does not exist in its original form anymore.

Travel services
international
United Assurance group
plc

They became a part of Mytravel in 2002.

70 / 61092

Royal London Mutual


Insurance Society ltd

71 / 61121
72 / 61243

Braddell plc
Volvo AB
(Automobile)

Metroline plc
Mack

73 / 61400

Spectris plc

Spectris AG Sensoren und


Systeme

Not enough financial data to be included.


No data available.
Listed
http://www.volvo.com/group/global/engb/volvo+group/history/ourhistory/history_introduction.htm
Because they creates a new unit regarding trucks - Product
Bought by subsidiary.

74 / 61916

WPP Group plc


(Advertising)

Young & Rubicam Inc.

75 / 62132
76 / 62289

Retail Stores plc


Anglo American plc

Liberty plc
Shell coal holdings ltd

77 / 62786

Enterprise inns plc


(Sells beer and leases
pubs)
Harsco Investments
(UK) ltd
(Access Services)

Swallows inns and


restaurants

Northern Leisure plc

82 / 62955

Luminar plc
(Nightclub and
entertainment)
Granada Group plc
Property acquisition
and management ltd
Iceland foods plc

83 / 62964

Coller capital ltd

84 / 63092

National Express
Group plc

Natwest equity partners


ltds portfolio
School services & leasing
inc

85 / 63570

Post office ltd, the

Extand

86 / 63613

Thomson-CSF Invest
Ltd
Clariant plc
Stora Enso oyj
(Paper manufacture)

Racal Electronics plc

78 / 62789

79 / 62793
80 / 62818
81 / 62890

87 / 63614
88 / 63697

SGB Scaffolding Group


plc

Compass Group plc


CNC Properties plc
Booker plc

BTP plc
Consolidated papers inc

Listed
http://www.wpp.com/WPP/Companies/CompanyDetail.htm?id=206
Because the target keeps it name and just continues as a brand Geografisk
Not included. Liberty PLC, Retail Stores
Listed
http://www.angloamerican.co.uk/article/?afw_source_key=19ED07
F3-C5AB-427C-BACE-6DABAC9037A7 Because this target
support their core industry - Overcapacity
Listed
http://uk.finance.yahoo.com/q/pr?s=ETI.L They just increases their
numbers of pubsGeographic
Not listed
http://library.corporateir.net/library/10/108/108575/items/192282/AR_2000_pdf.pdf They
buy SGB to support the department regarding Scaffolding - Product
Listed
According to Zephyr. After this deal Luminar becomes the largest
late-night operator in UK - Product
This merger only exists for 8 month.
Not enough available financial data.
Not listed
http://www.iceland.co.uk/page/view/about_iceland_story They
increase their value chain - Product
More then one acquirer.
Listed
http://www.nationalexpressgroup.com/nx/oc/overview/history/
Because they already have business in the US - Product
The company is owned by the government and no data available
regarding the deal.
They are part of the parent company in Mexico.
Not enough available financial data.
Listed
http://81.209.16.116/History/Regional_history/North_America/1980

89 / 63699
90 / 63752
91 / 63755

Vodafone Airtouch
PLC
(Telecommunication)
Delyn group plc
CMG PLC

92 / 63758

GN Resound A/S

93 / 63768

Ashtead group plc


(Equitment rental
service)

94 / 63776

Skanska AB
(SKA.B)
(Construction)

Selmer AS

95 / 63777

FalckDanmark A/S

96 / 63789

Winterthur Life UK
Holdings ltd

97 / 63870
98 / 64040

Burberry group plc


Anglian Water
plc(Water and
wastewater)

Group 4 Securitas
(international) BV
Colonial ltds UK life
insurance and pension
business
Burberry SA
Aquas Puerto

99 / 64073

Marius Pedersen A/S


(Waste management)

100 / 64135 Orange plc


101 / 64237 Cordiant
communications group

Mannesmann AG
Ingenta ltd
Admiral Plc
Beltone electronics
corporation
BET USA inc

Waste Management incs


operations in Denmark,
Slovakia and Czech
Republic
Ananova ltd
Lighthouse Global
Network inc

_1999 They are already located in the US but the market is very
competitive and to survive companies need to consolidate Overcapacity
Listed
http://www.vodafone.com/start/about_vodafone/who_we_are/histor
y.html They buy the largest network in Germany - Market
Not enough available data.
Not listed
http://www.logica.com/reports+%26+accounts/101028 Because the
merger increases the presence in Europe - Market
They are a division of GN Store Nord and the financial data for GN
Resound is only available until 2002.
Listed
http://www.ashtead-group.com/investors/reportsarchive.asp
According to their annual report 2000 was the purpose of the deal to
enter the US market - Market
http://www.skanska.com/upload/Investors/Reports/2000/Skanska_a
nnual_report_2000_part1.pdf : Because this acquisition increased
their marketshare in Poland, Norwey, Czech Republic and Great
Britain - Market
Not financial data and not listed.
Not listed
According to Zephyr. Because they are both life insurance providers
Overcapacity
Bought by subsidiary.
Not listed
http://www.thisismoney.co.uk/news/article.html?in_article_id=3791
53&in_page_id=2&in_a_source= They want to enter new markets
and now they have got Chile - Market
Not financial data and not listed.

Not financial data and not listed.


Not enough financial data and the webpage do not exist.

plc
102 / 64312 Arch chemicals
103 / 64506 Guardian IT plc
(Security software
developer)
104 / 64526 Signet Group plc
(Jewellery retail)
105 / 64533 BPB plc
(Building supply)
106 / 64634 Severn Trent plc
(Waste Management)
107 / 64636 First choice holidays
plc
108 / 64811 Rentokil Initial plc
(old)
109 / 64843 GWR group plc
110 / 64888 Scoot.com plc
111 / 65141 Hagemeyer UK ltd
(Electrical materials)

Hickson international
Safetynet group plc
Marks & Morgan
Celotex Corporations
wallboard and ceiling tile
business
UK waste management ltd

Ten tour groups tour


operations division
Ratin AS
DMG radio group
Loot plc
WF Electrical plc

112 / 65196 First choice holidays


plc
113 / 65473 Old Mutual plc
(Asset management)

Viajes Barcel SL

114 / 65490 Halifax plc


(Financial provider)

Bank One corporations


British credit card business

115 / 65635 Gallaher group plc


(Tobacco product
manufacture)

Liggett-Ducat ltd

United Asset management


corporation

It is a holding located in UK, but the parent is located in US.


Not listed
http://findarticles.com/p/articles/mi_qn4158/is_20000615/ai_n1430
3244 They get Luxembourg which is a difficult market - Market
Listed
http://www.signetgroupplc.com/pages/146/Group+History.stm#200
0 Because they need the US market - Market
Delisted
http://findarticles.com/p/articles/mi_qa5355/is_200007/ai_n2145838
9 They increases their market shares - Overcapacity
Listed
http://www.referenceforbusiness.com/history2/56/Severn-TrentPlc.html They become the leading waste manager in the UK market
after this acquisition - Overcapacity
Not enough financial data and the webpage do not exist.
Not included because they are sold again.
The acquirer is part of a group.
Sold again in 2001
Listed
http://www.hagemeyer.com/privatedata/DocUpload/850/literature/5
880/document.pdf They buy a company which keeps its brand and is
located in their home market - Geographic
Not enough financial data and the webpage do not exist.
Listed
http://findarticles.com/p/articles/mi_m0EIN/is_2000_Sept_26/ai_65
475062 Because they will become a fully owned subsidiary Geographic
Listed
According to Zephyr. Because they buy a credit card
Issuer - Convergence
Not listed
http://ir.gallahergroup.com/ir/media/news_2000.asp?news=20000615_01 Because

this acquisition will increase their position and market share in


Russia - Market
Pearson is bough by RTL in 2000 and is today a part of the group.
Listed
http://www.metso.com/ (About us - In brief history) They want to
create a industry giant - Geographic
Listed
http://www.sportech-plc.com/abou_comp_hist.php They change
their business from disc drive and storage system to gambling and
betting - Convergence

116 / 65816 Pearson Television ltd


117 / 65860 Metso oyj
(Paper, minerals)

Talkback productions
svedala

118 / 66262 Rodime plc


(Betting and gambling)
(New name: Sportech
in 2000)

Littlewoods Leisure ltd

119 / 66405 Suomi

Pohjola life

Not enough financial data and the webpage do not exist.

120 / 66406 Mets-Serla Oy


(Paper manufacture)

Modo Paper AB

121 / 66505 Sealed air Ltd.


(Packed food)

Dolphin packaging

122 / 66566 InTechnology plc

VData ltd

Listed
http://www.mreal.com/ilwwcm/resources/file/eb80d7069cbb538/Annual%20repor
t%202000%20EN.pdf They want do decrease production costs and
build a leading position - Overcapacity
Not listed
http://www.ukbusinesspark.co.uk/dog77206.htm They buy the
company to get access to the European Market - Market
Not enough financial data and the company merged in 2001.

123 / 66589 Det Danske


Traelastkompagni A/S
124 / 66592 Ahlstrom Paper group
OY
(Special paper and
fibers)

Starkki Oy AB

Does not exist anymore.

Dexter Corporations
nonwoven materials
business

Not listed
http://www.ahlstrom.com/modules/page/show_page~id~34DB13CF
F9AE4F0DAB3119274FE7ABF6~itemtype~00308B787886459385
F296A5AFD4FA74~tabletarget~data_1~pid~9DF99C33E5944EFC
A2B0592D3A4BAB62~layout~ahlstrom06.asp They want to reduce
costs and create a leading position in time - Geographic
Not included because the deal was not approved by the European
commission

125 / 66675 Svenska Cellulosa AB


Metsa Corrugated
(Hygienic tissue
products)
126 / 66734 Royal Bank of Scotland National Westminister
group plc, the
bank plc

Listed
http://www.investors.rbs.com/downloads/RBSplcAccounts2000.pdf
They create a subsidiary which keeps their brand - Geographic

127 / 66894 Cable & Wireless plc

POP Point of Presence


GmbH

128 / 66982 TXU Europe group plc


129 / 67122 Sapa AB (old)
(Aluminium developer)

Norweb energi
Anodizing inc.

130 / 67174 Shore capital group plc


(Investment company)

Jellyworks plc

131 / 67178 London Vista Hotel ltd


(Investment company)

Corus & Regal Hotels plc

132 / 67501 Holmen AB


(Paper manufacture)

Papelera Peninsular SA

133 / 67568 Schroders plc


(Financial adviser)

Liberty International
Pensions ltd

134 / 67645 ENRON


INVESTMENTS PLC
135 / 67661 Norske skogindustrier
ASA
(Paper manufacture)

MG PLC

136 / 68143 Glaxo Wellcome plc


(R&D of
pharmaceuticals)

Smithkline Beecham plc

137 / 68362 Fortum Oyj


(Oil and gas

Stora Enso Oyjs power


assets

Fletcher Challenge Paper


ltd

Listed
http://www.cwspain.com/media_events/media_centre/releases
/2000/07_18_2000_40.html They want to get a better position in the
European Market by offering a wider range of products - Product
Subsidiary of an American firm.
Delisted in 2004
http://www.sapa.se/pages/6945/SAPA_annual_report_2000.pdf
They want to decrease costs and gain economy of scale Geographic
Listed
http://www.e-consultancy.com/news-blog/13964/shore-capitalacquires-aim--listing-through-jellyworks.html They buy Jellyworks
to increase their portfolio and Jellyworks need the money to invest
in the companies - Product
Not listed
According to Zephyr. They buy a hotel chain which is in their main
portfolio - Product
Listed
http://www.holmen.com/Main.aspx?ID=6bda56f1-e568-4d96-8b76577cb13bb052 They buy this production facility to able to increase
their production volume - Overcapacity
Listed
According to Zephyr. Because they have pension fund before they
buy this - Product
The company is closed.
Listed
http://www.norskeskog.com/Investors/InvestorsEnglish/Reports/Annual-reports.aspx (Report 2000) Because they
buy the manufacture to get bigger with regards to their core business
in Australia - Overcapacity
Listed
http://www.gsk.com/investors/annual-reports-archive.htm (Report
2000) They expect synergies and cost savings as well as becoming a
dominant player in their field - Geographic
Listed
http://www.fortum.com/general_framelink.asp?path=14022;14024;1

exploration)
138 / 68876 QXL.com plc
(Online auction)
(New name: Tradus)

Bidlet AB

139 / 68888 BRITISH SKY


BROADCASTING
GROUP PLC
(Television
broadcasting provider)
140 / 69028 REXAM PLC
(Paper packing
manufacture)

SPORTS INTERNET
GROUP PLC

141 / 69046 PA Consulting group


ltd.

Hagler Bailly inc

AMERICAN NATIONAL
CAN GROUP INC.

4026;14043;14070;14071;14079;35102 They increases the volume


of their product by 10% - Overcaoacity
Listed
http://www.qxl.com/download/pdf/reports/QXL2000.pdf They want
to become dominant at the European market and Bidlet has the
leading position in the Nordic countries - Market
Listed
http://media.corporateir.net/media_files/irol/10/104016/reports/ar00.pdf They get offline
tele-betting and online betting due to this merger - Convergence
Listed
http://www.rexam.com/index.asp?pageid=30 They start as a
conglomerate but this deal makes them focus more on consumer
packaging - Product
Not enough data.

142 / 69378 Atlantic Telecom group First telecom group plc


plc

Do not exist anymore.

143 / 69467 OLD MUTUAL PLC


(Asset management
service)

GERRARD GROUP PLC

144 / 69773 HSBC Holdings plc


(Banking)

CCF Credit Commercial


de France

145 / 69991 FITCH IBCA


(Publisher of financial
statistics)

DUFF & PHELPS


CREDIT RATING CO

146 / 70148 Robotic Technology


Systems plc
(Robotic integration)

Wright Industries inc

147 / 70270 LECONPORT

MEPC LTD

Listed
http://www.oldmutual.com/financials/financialsArchive/presentation
sDisplay.jsp (report 2000) hey build upon their abilities worldwide
Market
Listed
http://www.hsbc.com/1/2/about-hsbc/group-history They buy 650
branches and get at better presence in France - Geographic
Not listed
http://www.fitchratings.com/jsp/corporate/AboutFitch.faces?context
=1&detail=3 They want to become a global competitor.) See group
at Zephyr - Market
Listed
http://www.roboticsonline.com/public/articles/archivedetails.cfm?id
=142 The deal results in a lot of synergies and they become a
significant player in the field Geographic
To many changes in ownership.

ESTATES
148 / 70318 Invensys plc
(Software and robot)

149 / 70508 GALEN HOLDINGS


PLC
150 / 70546 Caradon plc
151 / 71243 Capita group plc
(Management
Consulting service)
152 / 71941 PSION PLC
(Mobile and wireless
networking)
153 / 71994 HOMESTYLE
GROUP PLC
(Home furnishing and
retailer)
154 / 72051 ING Barings
155 / 72133 Watts Blake Bearne &
company plc
156 / 72164 NATIONAL
EXPRESS GROUP
PLC
(Transport)
157 / 72193 Telelogic AB
(Visual software
developer)
158 / 72200 Nokia Oyj
(Telecommunication
equipment

Baan Company NV

Listed
http://www.invensys.com/isys/docs/reports/ara_2000.pdf They get
the opportunity to sell integrated solution regarding automation and
software with respect to the value chain, vertical integration Product
Only listed at NASDAQ.

WARNER CHILCOTT
PLC
Eff-Eff Fritz Fuss GmbH & No financial data and no webpage.
Co. KGaA
IRG group plc
Listed
http://www.capita.co.uk///Documents/Annual_Report_2000.pdf
They buy a company which help companies in the process of
becoming a public firm - Product
TEKLOGIX
Listed
INTERNATIONAL INC.
http://ww7.investorrelations.co.uk/psion/uploads/reports/FullAnnual
ReportFIN2000.pdf They increase their focus on wireless network
and create a separate division - Product
HARVEYS FURNISHING Delisted
PLC
http://www.homestylegroup.com/homestylegroup/ They just get a
better product regarding home furnishing - Overcapacity
Charterhouse Securities
Limited
Hepworth Minerals and
chemicals holdings limited

No financial data.

PRISM RAIL PLC

Listed
http://www.nationalexpressgroup.com/nx/oc/strategy/ Because they
increases their market share by buying another British railway
company - Overcapacity
Listed
http://www.telelogic.com/company/corporate_information/history/ti
meline.cfm They acquirer them to support their portfolio - Product
Listed
http://press.nokia.com/PR/200008/786802.html This deal results in
an improvement of the supply of a product (DSL) regarding network

Quality Software and


systems inc
DiscoveryCom inc

Not included. Watts Blake Bearne merges with another company


less than two years after this deal.

manufacture)
159 / 72307 Gunnebo AB
(Security product
manufacture)

Chubb Safes group

160 / 72333 Lastminute.com plc


(Online travel agent)

Degriftour group

161 / 72599 Amvescap plc


(Investment fund)

Trimark financial
corporation

162 / 72605 John menzies plc


(Ground handling
service)
163 / 72687 Marconi plc

Ogden Aviation services


Albany Partnership limited

164 / 72702 PEARSON PLC

NATIONAL COMPUTER
SYSTEMS INC.

165 / 72706 Granada Media plc

United News & media


plcs television assets
Greenham Trading ltd

166 / 72725 Bunzl plc


(Paper packaging
manufacture)
167 / 72734 Bristol & West plc
(Banking)
168 / 72759 Tullow oil plc
(Oil and gas extraction)

Chase de vere investments


plc
BP Amocos Southern
North Sea assets

solutions - Product
Listed
http://www.gunnebo.com/NR/rdonlyres/B2B7484B-3D03-4E04AAF6-C2D0004AA601/0/GunneboAnnualReport2000.pdf Due to
the fact that the industry is characterized as one with excess capacity
- Overcapacity
Delisted
http://cws.huginonline.com/L/131840/PR/200008/875749_5_2.html
They get a good position in France which is seen as an important
market in Europe - Market
Not listed
http://findarticles.com/p/articles/mi_m0EIN/is_2000_May_9/ai_619
64214 Because they gain a significant market share and additionally
also expand their product portfolio - Market
Listed
According to Zephyr, the deal was to support the core business
regarding ground handling services in relation to aviations - Product
Listed
http://findarticles.com/p/articles/mi_m0WVI/is_2000_August_7/ai_
63989788 They make the purchase to increase their 3G network Product
Listed
http://www.pearson.com/index.cfm?pageid=144&pressid=20 They
get a product which can expand their business unit regarding
education and get a lot of new opportunities to create new products
and markets - Convergence
Part of a bigger group.
According to zephyr they both produces packaging - Product
Not listed
http://findarticles.com/p/articles/mi_m0EIN/is_2000_July_28/ai_63
742951 The purpose is to increase the presence of Bristol & West
and expand the independent advisory service Overcapacity
Listed
http://www.tullowoil.com/tlw/aboutus/strategy/ and

http://www.tullowoil.com/tlw/aboutus/history/20002004/ They
invest to increase their asset-base Overcapacity
Not enough data regarding the deal.

169 / 72789 Advent capital


(holdings)plc

Kingsmead Underwriting
Agency ltd

170 / 72818 Pernod Richard SA

Seagram Company ltds


spirits and wine division
NORRPORTEN
FASTIGHETS AB
Highway Vehicle
management

Not included because Pernod Richard is located in France.

Direct energy Marketing


ltd

Listed
http://www.centrica.co.uk/index.asp?pageid=39&newsid=10&type=
17&year=archive They get the opportunity to new services and
products - Overcapacity
Listed
http://www.riotinto.com/whoweare/strategy.asp and
http://www.riotinto.com/whoweare/timeline.asp They only invest to
better their core products and portfolio - Overcapacity
Not listed
http://www.morrisonplc.com/who-we-are/Morrison supports utility
companies in relation to repair and maintenance, therefore this deal
is a way to make investments in respect to the value chain Convergence
Listed
http://www.laird-plc.com/about/index.cfm?f=1 They enter the
electromagnetic shielding industry which is different from the other
engineering projects they have been doing so fare - Convergence
Listed
http://www.scottishsouthern.co.uk/SSEInternet/index.aspx?pageType=1&rightColHead
er=20&id=394&TierSlicer1_TSMenuTargetID=58&TierSlicer1_TS
MenuTargetType=4&TierSlicer1_TSMenuID=6 They operate as a
division with their own name - Geographic
Not enough data.

171 / 72939 NS HOLDING AB


172 / 73015 First National vehicle
holdings ltd
(Contract hire and
purchase service)
173 / 73029 Centrica plc
(Gas produktion and
distribution services)
174 /
73101

RIO TINTO PLC


(Mining)

NORTH LTD

175 /
73253

ANGLIAN WATER
PLC
(Water utilities)

MORRISON PLC

176 /
73265

Laird group plc, the


(Electronic component
equipment
manufacture)
Scottish & Southern
Energy plc
(Gas and utility
services)

Instrument Specialities Co
inc

KNOWLE HILL

DENCORA PLC

177 /
73272

178 /

SWALEC

Not enough financial data.


No financial data.

73305
179 /
73381

PROPERTIES PLC
RIO TINTO PLC
(Mining)

180 /
73429

BILLITON PLC
(Mining and related
activities)

RIO ALGOM LTD

181 /
73430

BARCLAYS PLC
(Banking)

WOOLWICH PLC

182 /
73487

UPM-KYMMENE
OYJ

REPAP ENTERPRISES
INC.

183 /
73492

Skanska AB

Kvaerner construction
Group limited

184 /
73693

Marylebone Warwick
Balfour Group plc
(Hotel operator)

Malmaison hotel ltds


properties and business

185 /
73712
186 /
73797

WESTERN POWER
DISTRIBUTION LTD
Odfjell ASA
(Shipping service)

HYDER PLC

187 /
73886
188 /

Focus do it all ltd

Wickes plc

http://www.odfjell.com/internet/frames.asp?company They can now


not only store the oils, but also transport it from harbour to harbour Convergence
Not enough data.

National Grid Group

Niagara Mohawk Holdings

Listed

ASHTON MINING LTD

Seachem

Listed
http://www.riotinto.com/whoweare/strategy.asp They only invest to
better their core products and portfolio - Overcapacity
Listed
http://www.bhpbilliton.com/bbContentRepository/Reports/2001BH
PBillitonLtdAnnualReport_partC.pdf They increases their activity
within the cobber production due to this acquisition - Overcapacity
Listed
http://www.investor.barclays.co.uk/results/2000results/annual_revie
w/files/6-11.pdf They want to use this merger to boost their
competitive advantage in mortgage and saving market Overcapacity
Listed
http://w3.upmkymmene.com/upm/internet/cms/upmcms.nsf/$all/79871f555760a2
a9c2256e27002fc1eb?OpenDocument&qm=menu,0,0,0 (pdf. Report
2000) They make the deal to strengthen their product called paper
magazines because it is a main product - Product
Listed
http://www.skanska.com/upload/Investors/Reports/2000/Skanska_a
nnual_report_2000_part1.pdf They increases their local presence in
UK and also in China because Kvaerner construction Group limited
own some companies over there - Overcapacity
Listed
http://www.hospitalitynet.org/news/4013189.search?query=maryleb
one+warwick+balfour+group+plc+%2b+malmaison+hotel+ They
increases their market position and the hotels keeps their names Geographic
Bought by PPL in 2002.

73897

plc
(Electricity distributor)

inc.

189 /
73923

Standard Chartered plc


(Banking)

Chase Manhatten Card


company limited

190 /
74022

Abbey National plc

Scottish Provident
institution, the

191 /
74287

Spirent plc

Zarak Systems Corporation

192 /
74331

Field group plc


(Food packaging
manufacture)

First carton group ltd

193 /
74365
194 /
74449

Hill & Smith holdings


Ash & Lacy plc
plc
(Fabricated structural
metal manufacture)
Baltimore Technologies Content Technologies
plc
holdings ltd

195 /
74592

Cadburry Schweppes
plc

Snapple Beverage
corporation

196 /
74608

Smiths industries plc

TI group plc

http://www.nationalgrid.com/NR/rdonlyres/CC77A3BA-E4414007-8A7D-3439165C286B/524/annualreport00_01.pdf The target


fits well with their existing businesses in the US and improves their
market position - Overcapacity
Listed
http://www.telegraph.co.uk/money/main.jhtml?xml=/
money/2000/09/02/cnstan02.xml They make the deal to be get a
bigger part of the banking market in Hong Kong and thereby being
able to compete better with respect to HSBC - Market
Listed
http://www.aboutabbey.com/csgs/StaticBS?blobcol=urldata&blobhe
ader=application%2Fpdf&blobkey=id&blobtable=MungoBlobs&bl
obwhere=1118928050506&cachecontrol=immediate&ssbinary=true
&maxage=3600 They get access to Dubai, Hong Kong and Ireland
Market
Listed
http://www.spirent.com/documents/4023.pdf They get a new
product which can support there existing product - Product
Not listed
http://www.packagingnews.co.uk/news/425375/Chesapeake-snapsFirst-Carton/They gain assets utilization and can serve a even larger
part of Europe - Overcapacity
Listed
http://miranda.hemscott.com/ir/hils/pdf/Annual_Report_2000.pdf
They strengthen their core business activities and get new product
opportunities Overcapacity
Cannot find the deal.
Listed
http://www.cadburyschweppes.com/EN/MediaCentre/PressReleases
/snapple_251000.htm The product fits their portfolio and is efficient
- Product
Listed
http://www.smithsgroup.com/siteFiles/resources/reportAttachments/Smiths_RA.pdfTh
ey improve their aerospace division - Product

DSV De
sammensluttede
vognmaend af 13-7
1976 A/S
(Logistic)
Sampo Insurance
company
Balfour Beatty plc
(Engineering,
construction and
support service)

DFDS Dan transport

Listed
http://www.finansnyheder.dk/News/ShowNewsstory.aspx?StoryID=
9313883They get access to a lot of markets outside of Scandinavia Market

Powszechne Towarzystwo
Emerytalne Norwich Union
Adtranzs rail
electrification and traction
power business

Part of a bigger group.

200 /
75169

Dimension data
holdings plc
(Data storage)

Timebridge technologies
inc

201 /
75240

Intercare group plc, the


- pharmaceuticals

Macarthy group ltd


-pharmaceuticals

202 /
75271
203 /
75280

Smiths industries plc


-aerospace
Marconi plc
Telecommunication
(London: MNI)
AP Fastigheter AB

Fairchild defense

197 /
74617

198 /
74724
199 /
74748

204 /
75396

Mariposa technology inc


Dis Anders Dis AB

205 /
75302

Asda group plc retail 48 In-store Moss


LSE (ASDA)
Pharmacies

206 /
75319

Wyevale garden centres Country gardens PLC


PLC

207 /
75324

Outokumpu Steel Oyj


-stl (OUT1V)

Avesta Sheffield AB

Listed
http://www.balfourbeatty.com/bby/about/history/ and
http://www.balfourbeatty.com/bby/investors/reports/?archive=yesTh
ey make the deal to be able to become market leaders
Overcapacity
Listed
http://www.dimensiondata.com/NR/rdonlyres/C0C5EF55-A3C94CC6-8D73-FBAC96CA6D71/6910/AnnualReport20001.pdf They
get to cover 26% of the Eastern market of the US - Market
Opkbt af cardinal health i 03/04
Kan f 3 rs data inden overtaget.
http://www.citywire.co.uk/adviser/-/news/market-andshares/content.aspx?ID=213114 Extending prescription drugs
business - Product
http://www.orbital.com/NewsInfo/release.asp?prid=267
Supports the areas of manufacturing and aerospace Product
Not included
http://www.dios.se/eng/factsandhistory.html
http://www.apfastigheter.se/Templates/Page.aspx?id=257 They try
to get a better market position by cutting costs - Overcapacity
http://www.walmartfacts.com/articles/3561.aspx Becoming a giant
supermarket chain offering all product categories extend product
lines complementary product - Product
http://www.prnewswire.co.uk/cgi/news/release?id=42058 According
to Zephyr, they have a history of buying competitors Overcapacity
http://www.thefreelibrary.com/Avesta+Sheffield:+Yearend+Report+for+April+-+December+2000-a070730590

AvestaPolarit ()

208 /
75416
209 /
75516

http://www.purchasing.com/article/CA139261.html Two of the


largest stainless steel producers in Europe contration of industry
Renamed AvestaPolarit right after the merger listed on OM Overcapacity
Not included because 2 companies by Sakab together.

Sydkraft AB

Sakab AB

Cadburry Schweppes
plc retail
CBRY (LSE) CSG
(Nyse)
Huhtamaki Van leer
Oyj (HUH1V) manufacturing

Orangina Schweppes SAS

After buying Orangina, Cadbury Schweppes becomes second


biggest on the French market - Overcapacity

Packaging Resources inc

211 /
75541

Danske bank A/S


banking (DANSKE)

Real Danmark A/S

http://www.huhtamaki.com/Websites.nsf/index/Webpage35AF1?op
en&site=com
http://www.allbusiness.com/company-activitiesmanagement/product-management/6590333-1.html Buys a
packaging manufacturer in another geographic area Is established
in the US market which is characterized by consolidation
Overcapacity
http://www.danskebank.com/da-dk/ir/koncernen/fusioner-koeb-ogsalg/Pages/fusioner-koeb-og-salg.aspx They add an new area to their
business - Convergence

212 /
75559

Spectrasite Transco
Communications ltd
-telecom
Tele2 AB telecom
(TEL2.B)
Anglo American plc

Aerial Sites plc

Non information available

BaltCom GSM

http://findarticles.com/p/articles/mi_m0ECZ/is_2000_Oct_4/ai_657
33797 They complete their presence in the baltic region - Market
Non information available

210 /
75532

213 /
75680
214 /
75720
215 /
75769
216 /
75782
217 /
75802

Carbocol

Logica plc telecom


(London: LOG)

Pdv
Unternehmensberatung
GmbH

Outokumpu Oyj Steel


industry (OUT1V)
GN Store Nord A/S
(GN)

Norzink AS
Hello Direct Inc.

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2000/1
0/06/cnlog06.xml - Need to expand into the largest market in
Europe - Annual report 2001: They build a stronger presence in
German market Market
http://findarticles.com/p/articles/mi_qa5382/is_200012/ai_n2146456
7 They creates synergies in the value chain - Product
http://www.bitconomy.dk/default.asp?articleid=941 HD keeps
their name, GN obtain a position as leader in the market for handsfree telecommunication solutions Geographic

218 /
75841

Alliance Unishem plc


pharma wholesaler

Interpharm Groep
pharma

219 /
75877
220 /
75995
221 /
76045

Anglo American plc

Cerrejon zona Norte

Royal London Mutual


Insurance Society ltd
Marconi plc Telecom
(London: MNI)

Scottish life Assurance


company, the
Splice do Brasil
transmissions business

222 /
76060

Smithkline Beecham
plc

Block Drug Company

223 /
76125

Aberdeen Asset
Mangement plc
financial services,
(ADN)
Petrochem UK ltd

Murray Johnstone
Holdings Limited

224 /
76135

Carless Refining &


Marketing ltd

225 /
76314
226 /
76380

Miller group ltd housing


Telefonaktiebolaget
LM Ericsson (ERICY)

Birch

227 /
76413

i-data International A/S


-IT

Eicon Technology
Corporation

228 /
76444

London Electricity
Group plc

Cottam power station

229 /

Spirent plc (SPT:

Net-HOPPER Systems Inc

Microwave power Devices


inc

http://europa.eu/rapid/pressReleasesAction.do?reference=IP/00/142
6
AU present in many European countries, with acquisition of
Interpharm gained presence in NL - Market
n.a. sold to a consortium.
Not enough financial data.
http://www.prnewswire.com/cgibin/stories.pl?ACCT=104&STORY=/www/story/10-092000/0001332961&EDATE= They improve the product range in
Latin America - Product
http://findarticles.com/p/articles/mi_m3374/is_16_22/ai_67503434 Acquisition significantly enhance consumer healthcare business
new products - Product
http://www.docs.cgiiversion.com/?id=8THBX5DNH34D&page=12&size=2 They
complete the deal to become the biggest fund manager in Scotland Overcapacity
http://www.nortonrose.com/news/pre3107/news6970.aspx
http://www.petrochemcarless.com/docs/about_us_history.htm
Needed to market new products (acquired carless) - Product
http://www.miller.co.uk/news_article.asp?ID=36&division=group
Birch an excellent presence in a new geographic market - Market
http://www.secinfo.com/dsTKg.5Jg.d.htm Will significantly
improve ericssons place as market leader. MPDs strength is
extremely important in development of 3G R&D
http://findarticles.com/p/articles/mi_m0ECZ/is_2000_Sept_28/ai_65
531659 - one of worlds leading secure internet connectivity
solutions. Improve area of internet access products product line
extension
http://siliconinvestor.advfn.com/readmsg.aspx?msgid=14507268
Acquired by MPI tech in august 2002 - Product
http://www.ofgem.gov.uk/About%20us/enforcement/mergers/oft/Do
cuments1/mergersandaquisitions%2069.pdf They completed a
vertical merger Product
http://findarticles.com/p/articles/mi_m0WVI/is_2000_Oct_23/ai_66

76574

LSE)

230 /
76831

Amvescap Plc
(invesco)
Fra 2007 invesco
(LSE: IVZ)
Newmedia spark
NMS until 2007. Name
change to Spark
(SPK.L)
Fjord Seafood ASA
-inactive
2007: Marine Harvest,
MHG
NSB Retail Systems plc
NSB:LN
software
Carlton
Communications plc
(CCM.L)
-ITV (2/2-04)
Sonera SmartTrust
-telecom
Coflexip Stena
Offshore

231 /
76938
232 /
76961
233 /
76994
234 /
77051
235 /
77192
236 /
77306
237 /
77364
238 /
77617
239 /
77631
240 /

Trinity mirror
Regionals plc
newspaper publisher
(Trinity mirror: TNI)
Telewest
Communications plc
traded on nasdaq until
2004-05
Granada Compass plc
compass group
Land Securities plc

Perpetual plc

407144 They extend reach into a different geographic market


Market
Not included

Internet indirect

SPARK intends to consolidate its position as one of the leading


technology investment companies in Europe. Zephyr Overcapacity

Salmones Tecmar

http://www.fjordseafood.com/files/documents/2000_eng.pdf
Vertical integration and improvement of value chain - Product

STS Systems

Acquired by Epicor 2008


http://www.lexpert.ca/deal.php?id=1202 NSB will gain substantial
presence in north America Market
http://news.bbc.co.uk/1/hi/wales/988040.stm Year long
consolidation. Acquire approximately 50% of marketshare in ITV.
http://www.brandrepublic.com/News/45789/ - make good use of
HTVs high quality performance - Overcapacity
Business unit of sonera ltd, sonera del af teliaSonera
n.a.
Not included

HTV Ltd

Across Holding AB
Aker Maritime ASA's
deepwater engineering
activities
Southnews Plc

http://images.icnetwork.co.uk/docs/tmcorporate/0000B0E4-E56F1210-8B6080C328EC0000.pdf Fully owned subsidiary of trinity


mirror plc. Geographic

Eurobell Ltd

Not included

Beaver Foods

n.a. merged Granada compass demerged after compass group.

Trillium Investments GP

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2000/1

77639

-LAND.SECS (LSE)

Ltd

241 /
77644

Carlsberg A/S
(CARL A, CARL B)

Feldschlsschen Getrnke
Holding AG

242 /
77750

Assa Abloy AB
ASSA.B

Hughes Identification
Devices

243 /
77911
244 /
78112

Travelex plc - foreign


currency provider
Kemira Oyj KRA1V
Manufacturing

Thomas Cook Financial


Services Ltd
Alcro-Beckers AB

245 /
78147
246 /
78168
247 /
78250
248 /
78291

Narvesen ASA
-Reitan Narvesen
Rio Tinto plc - mining
-RIO
IHI Holding A/S
health insuranse
Trelleborg AB
TREL.B

REMA 1000 Norge AS

249 /
78378

Spirent plc (SPT:


LSE) telecom

250 /
78493
251 /
78501

Navision Software AS
Electrolux AB
(ELUX.B) home
appliance manufacturer

Email Ltd's household


appliance making unit

252/ 78517

Hexagon AB
(HEXA.B)
Technology group

Brown & Sharpe


Manufacturing Company's
metrology business

Ashton Mining Ltd


International Health
Insurance danmark A/S
Laird Group plc's auto
component unit

1/03/cnland03.xml Add a new branch to existing business, property


outsourcing Product
http://www.carlsberggroup.com/media/News/Pages/03112000feldsc
hloesschen-SEA2000.aspx Strategic acquisition to reach the goal as
the leading company within the market Market
http://findarticles.com/p/articles/mi_m0EIN/is_2000_Nov_6/ai_666
21916 Adds leading technology - R&D
http://findarticles.com/p/articles/mi_m0EIN/is_2000_Nov_8/ai_667
04076 Privately held company not listed Overcapacity
http://www.referenceforbusiness.com/history/Ja-Lo/KemiraOyj.html In 1999 redefined strategy to focus on three core areas, one
of these strengthened by acquisition of AB - Product
Retail giant in Norway consolidation
Delisted in 2002 Overcapacity
http://www.riotinto.com/whoweare/timeline.asp Vertical integration
improving resource base Product
Not included due to lack of information

http://www.trelleborg.com/en/Investors/Acquisitions-andDivestments/
http://www.theautochannel.com/news/press/date/20010102/press033
403.html Acquisition to strengthen core business Overcapacity
Hekimian Laboratories Inc. http://www.allbusiness.com/company-activitiesmanagement/company-structures-ownership/6580679-1.html
Expertise and technology in the companies complement each other
step to become world leader Product
Damgaard A/S
Not included due to lack of information
http://ir.electrolux.com/files/Elux-annual-2001-en.pdf - Strengthen
core area by acquiring AUS largest appliance manufacturer
http://www.electrolux.com/node35.aspx?id=13748 strengthen
global position, world no. 1 - Overcapacity
http://investors.hexagon.se/files/press/hexagon/hexagon_annual_rep
ort_2001_eng.pdf - acquisition of the world leader within threedimensional metrology new business area.
http://www.thefreelibrary.com/Brown+&+Sharpe+Announces+Sale

253/ 78533

Intec Telecom Systems


plc (ITL)
-Software vendor

Computer Generation Inc.

254/ 78781

Northern & Shell


Group Ltd
-newspaper publisher
and distributor
Orkla Media AS
-newspaper publisher

Express Newspapers

256/ 78837

Pillar City plc

Wates City of London


Properties plc

257/ 79408

Cobham plc (COB)


-aerospace and defense
systems manufacturer
Focus Do It All Ltd
-retailing

BAE Systems Electronics


Ltd's Power & Control
Business
Great Mills (Retail)

259/
79544

Vodafone Group plc


(VOD) mobile
telecommunication
service

Eircell Ltd

260/
79550

Bank of Scotland
(Governor & Co of)

ICC Bank plc

255/ 78829

258/
79539

Det Berlingske Officin A/S

+of+Major+Operating+Businesses+to...-a067040519 - redirect
business - focus on new high-tech market - Convergence
Zephyr: Extend coverage to NA and broaden product range
http://findarticles.com/p/articles/mi_m0ECZ/is_2000_Nov_22/ai_67
266990 - geographic expansion and diversification of product
portfolio
http://www.thefreelibrary.com/Intec+Telecom+Systems+Expands+I
nto+North+and+South+America-a073057147 take the new
product from CG worldwide (establish Intec division in mediation)
Product
Not listed
http://www.thisismoney.co.uk/news/article.html?in_article_id=3731
03&in_page_id=2&in_a_source= - acquire a UK publisher, but the
name remains unchanged Geographic
Renamed Edda media in 2006 after being acquired by Mecom
http://www.huginonline.com/reports/799775/85110.pdf establishing the 5 largest in the Nordic region, acquiring Danish
publisher which is established as its own segment - Geographic
Not included due to lack of information.
http://findarticles.com/p/articles/mi_qn4158/is_20001205/ai_n1436
0614 - complement existing business within on business unit Product
Not listed
http://www.focusdiy.co.uk/page/poaboutfocus - acquisition of 98
stores complementing existing business
http://findarticles.com/p/articles/mi_qn4158/is_20000719/ai_n1433
0393 - acquisition due to consolidation in the industry, gaining
market share Overcapacity
http://www.vodafone.com/start/about_vodafone/who_we_are/histor
y.html - Acquisition of Ireland leading mobile communication
company
http://query.nytimes.com/gst/fullpage.html?res=9C0CE7D61F39F9
31A15751C1A9669C8B63 entry to the irish market - Market
After merger with ICC, renamed BOS (Ireland)
Not included, only accounting information from 2004

261/
79551

-Banking services
Nokia Oyj (NOK1V)
-telecommunication

262/
79724

Ramp Networks Inc.

http://www.nokia.com/A4136002?newsid=801368 - Strengthen
existing IP Network Security Solution portfolio - Product

Shire Pharmaceuticals
Group plc

BioChem Pharma Inc.

http://www.shire.com/shire/uploads/reports/2001UKGAAPaccounts
Web.pdf - acquisition to strengthen early phase development - R&D

263/
79745

Pubmistress Ltd

Pubmaster Group Ltd

Acquisition vehicle - 3 owners

264/
79755

Close Brothers Group


plc (CBG)
-Financial services

265/
79757

Ineos Capital Ltd

Transamerica Insurance
http://boards.fool.co.uk/Message.asp?mid=6305567&sort=recomme
Finance Company (Europe) ndations - To merge with existing insurance division gaining
operating efficiencies. Same focus and same country Overcapacity
ICI Teijin Fluorochemical
Subsidiary acquired for the purpose of this one acquisition.
Ltd

266/
79884

Allied Domecq plc


Delisted in 2005

GH Mumm & Compagnie

267/
79908

Eniro AB (ENRO)
-publisher

Wer liefert was? GmbH

268/
79922

Tilbury Douglas plc


-engineering services
Renamed interserve in
2001
Degussa SKW Co

Building & Property


(Holdings) Ltd

Bodycote International
plc (BOY) - supplier of
testing and thermal
processing services

Lindberg Corporation

269/79984
270/
80015

Laporte plc

Alcoholic beverages producer, delisted in 2005 after acquisition by


Pernod Richard
http://www.euromonitor.com/pdf/world_leading_global_brand_own
ers.pdf - entering the champagne area Product
Zephyr: acquire on of the worlds largest B2B publishers
http://www.eniro.com/upload/Corporate/Investor%20Relations/Fina
ncial%20reports/Annual%20report2001.pdf enable eniro to
establish online B2B publishing Product
Not listed
http://www.interserveplc.com/plc/aboutus/history.htm - Move from
construction and into support service sector, not the first acquisition
in this aim Convergence
No information about this deal not included
http://www.bodycote.com/?OB=18&POB=2 acquisition of
Lindberg (world leader in thermal) more than doubles the
companys presence in the US
Bodycote AR 2001: Acquisitions complement existing business and
helps geographic expansion. Becomes market leader in US
Overcapacity

271/
80085

Securicor plc
Renamed group 4
securicor in 2004.
Marconi plc telecom
equipment
manufacturer

Argenbright Security Inc.

273/
80327

Svenska
Handelsbanken AB
(SHB.A) financial
services

SPP Livfrskring AB

http://www.handelsbanken.se/shb/INeT/IStartSv.nsf/FrameSet?Ope
nView&id=HandelsbankenSEEnglish&docname=Handelsbank
enSE%20|%20First%20page To become largest player in
occupational pension area Overcapacity

274/
80427

Macquarie European
Infrastructure plc

Bristol International
Airport plc

Two companies are acquiror

275/
80434

Lohja Group
-Production of paper

Rexam Release Ltd

Renamed in response to the merger Loparex


Not quoted and no accounts available

276/
80438

United Utilities plc


(UU) water and waste
system operator

Hyder Industrial Ltd

277/
80544

Kingfisher plc (KGF)


home improvement
retail group

28 non-trading store
development sites

278/
80601

Protocol Associates Ltd Spring Education


-management info
software provider
Waste Recycling Group Hanson Waste
plc waste
Management
management

http://www.unitedutilities.com/?OBH=4978 - reinforces its position


in the industrial water and wastewater treatment sector
http://www.datamonitor.com/industries/news/article/?pid=89DACA
29-F0BA-4B3F-99D6-8D94607326D9&type=NewsWire establish
market position in two new product areas Product
http://www.iii.co.uk/investment/detail?code=cotn:KGF.L&display=
news&it=le&period=2000 subsidiary CDI purchase through
retailer B&Q the 28 facilities - Market
http://boards.fool.co.uk/Message.asp?mid=6322877&sort=whole
Not listed, No enough separate information on protocol subsidiary
of bridge point capital
Not included
Delisted in June 2003
http://www.letsrecycle.com/do/ecco.py/view_item?listid=37&listcat
id=308& listitemid=2253 part of geographic expansion plan
Market
Only accounts from 2003 and onwards not included

272/
80113

279/
80696
280/
80706

Gala Group Ltd club


operator

Systems Management
Specialists Inc

Ladbroke Casinos Ltd

http://www.answers.com/topic/securicor-plc?cat=biz-fin
improving aviation services, acquiring the largest player in NA and
become world leader in aviation services Overcapacity
SMS divested in 2003 less than 3 years later

281/
80727

Renamed in 2005 after


merger: Gala Coral
group
Scottish Power plc
electricity generator

Rye House Power Station

http://www.scottishpower.com/InvestorNews2_1354.htm - improve
market presence and capacity in UK Market

Liverpool Victoria
Friendly Society Ltd
-insurance, banking and
investment
Gerber Foods Holdings
Ltd
-fruit juice manufacture

Permanent Insurance
Company Ltd

284/
80940

Hanson plc
-concrete manufacturer

Davon Inc

285/
81560

Sanitec Corporation
-manufacture of
sanitary ware
Go-Ahead Group plc
(GOG)
-airport and bus
transportation
Persimmon plc (PSN)
-construction

Caradon Bathrooms Ltd

Not listed
http://www.himag.com/healthinsurance/article.do?articleid=20000081168
expand into new market area Market
Zephyr: Increase customer base in Europe
http://findarticles.com/p/articles/mi_hb5245/is_200211/ai_n198791
25 - largest juice manufacturer in Europe, become more flexible ad
drive down costs Overcapacity
Delisted in 2007
http://www.hansonplc.com/index.asp?PageID=291&Year=2001&N
ewsID=75 critical mass in the market, complement existing
business Overcapacity
Lack of account in 2000
Acquired in 2001, changed name back in 2002
Not included
Not included

Beazer Group plc

http://news.bbc.co.uk/1/hi/business/1133986.stm - consolidation in
the construction industry Overcapacity

288/
81976

Crow Aerodromes

East Midlands Airport

Acquisition vehicle (created with on purpose- this deal) operating on


behalf of Manchester airport, not included

289/
82028

Svenska Cellulosa AB
(SCA:B) - producer of
consumer goods and
paper products

Away From Home's tissue


operations

http://www.sca.com/documents/en/Annual_Reports/Annual_Report
_2001_en.pdf - the largest 3 constitute 88% of the market the
acquisition makes SC the 3 largest Overcapacity
http://www.sca.com/documents/en/Annual_Reports/Annual_Report
_2001_en.pdf - critical masse and potential for further consolidation
overcapacity

282/
80773
283/
80817

286/
81610
287/
81721

Emig AG's fruit juice


business

Midland Airport Services


(Holdings) Ltd

290/
82073

ProSafe ASA
(Mangler ticker)
-Utility production
Amvescap plc Listet, renamed invesco
(financial services,
asset management)

Nortrans Offshore Ltd

292/
82205

Taylor Woodrow plc


-Housing construction

Bryant Group plc

293/
82283

Renamed Taylor
Wimpey in 2007
Prudential plc
(LSE:PRU.L)
-financial services,
insurance

291/
82131

294/
82735
295/
82952
296/
83065
297/
83082
298/
83105

National Asset
Management Company

Orico Life Insurance Co.


Ltd

http://www.prosafe.com/getfile.php/PDF%20Filer/Annual%20repor
ts/AR%202001%20-%20e.pdf becomes major player in Asia, a
move into floating production Product
http://www.invesco.com/invest/reports/annrpt_01.pdf - add to
existing portfolio, and add range of new investment styles product
http://www.invesco.com/media/press_releases/2001_02_28.pdf broaden product offerings in line with strategy to provide a range of
different investment styles Product
http://www.taylorwimpey.com/Home/NewsMedia/PressReleases/Sh
areandcashofferforBryantGroupplc - In line with strategy to grow
UK housing business (cost savings and better margins (synergies)
Overcapacity
http://www.prudential.co.uk/prudentialplc/media/newsreleases/archive2001/2001-01-23/ - expand business
and presence in japan. Acquired excellent player in Japan ,
providing possibilities for important growth.
http://www.independent.co.uk/news/business/news/prudential-inpound134m-deal-to-buy-orico-of-japan-703355.html - mark entry to
lucrative japan market Market
Not included

Laing Investments Ltd


-financial services,
investment services
Bromley Property
Investments Ltd

Hyder Investments Ltd


BPT plc

Acquisition vehicle formed to undertake this particular deal not


included.

Hit Entertainment plc


(LSE: THE)
-TV production
services
Friends Ivory & Sime
plc (FCAM) asset
management

Lyrick Corporation

Delisted in 2005
http://www.fool.co.uk/news/Comment/2002/c020306b.htm - move
into the US market Market

Friends Provident Life


Office's Retail Investment
Operations

Not included

Halifax Group plc

Equitable Life Assurance


Society's non-profit and
unit-linked business,

http://www.hbosplc.com/media/pressreleases/articles/halifax/200102-05-00.asp?section=halifax They make the deal to gain cost


savings as well as to increase their market share and increase their

-Financial services

operating assets and sales


force
Morrison Management
Specialists Inc.

299/
83281

Compass Group plc


(CPG) foodservice
company

300/
83353

Norsk Hydro ASA


(NHY)
energy/aluminium
manufacturer
EQT Partners AB PE
investement company
Compass Group plc
-CPG

VAW Aluminium AG

303 /
84326

Innovation Group plc,


The TIG
Insurance software

Huon Holdings Ltd

304 /
84558
305 /
84688

Hilton International
Hotels Ltd
Lex Service plc
-RAC PLC (2002)
Motoring service

Hilton Group plc's 11 UK


Hotels
Auto Windscreens Ltd

306 /
84749

Mlnlycke Health Care


AB

Johnson & Johnson's


surgical products business

301 /
83461
302 /
83644

Leybold Optics GmbH


Selecta Group AG

fund base Overcapacity


http://www.iammorrison.com/compass.htm - keeps own brand,
same area of service
http://www.allbusiness.com/company-activitiesmanagement/company-structures-ownership/6052376-1.html perfect fit, no 2 in food service in NA, continues as Morrison,
subsidiary to CG Geographic
http://www.hydro.com/en/About-Hydro/Our-history/1991--2005/2002-VAW--a-dream-comes-true/ - complementing each other
well conditions in industry require NH to grow, easiest through
acquisitions Overcapacity
Ikke information, opkber udenfor kompetenceomrder
Product, vertical integration ny salgskanal, bedre
distributionskanal til kunderne.
http://query.nytimes.com/gst/fullpage.html?res=9E01E6DE1F31F93
0A25751C0A9679C8B63 create largest eurowide vending with
American subsidiary - Geographic
http://findarticles.com/p/articles/mi_m3190/is_8_35/ai_71326393 A european complement to NA vending business and a new offer in
connection with other service offerings.
http://www.innovation-group.com/OurHistory.aspx - achieved
accelerated geographic expansion into EU, NA, AUS critical mass
IG has global expansion strategy - Market
They buy a subsidiary
Delisted 23/6-2005
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2001/0
3/31/cnrac31.xml - provide synergies and immediately strengthen
existing brands.
http://archive.theargus.co.uk/2001/4/2/180481.html - acquisition is
in line with ambition to become a full service group Product
Not listed, private company
http://www.molnlycke.com/item.asp?id=22394&lang=2&si=6
acquisition of famous brand Product

307 /
84791
308 /
84864
309 /
85111
310 /
85334

INVERESK
RESEARCH GROUP
LTD
Liverpool Victoria
Friendly Society Ltd
STESSA LTD
Odfjell ASA ODF
shipping company

CLINTRIALS
RESEARCH INC.

Not included

Royal National Pension


Fund for Nurses, The
MOORFIELD GROUP
LTD
West Delta

Not included

311 /
85433
312 /
85525

PLIMSOLL LINE LTD BRITISH REGIONAL


AIR LINES GROUP PLC
Carli Gry International InWear Group AS
AS Retail, IC
Companys (IC)

313 /
85573

Eniro AB (ENRO)
Directory services

Panorama Polska

314 /
85583

Reckitt Benckiser plc


manufacturer of
cleaning products

Oxy Co Ltd

315 /
85693

Autologic Holdings plc


(ALG)
Automotive industry

Axial Logistics Ltd

Not listed, no information about the deal: possibly a subsidiary


created to undertake the acquisition
http://www.odfjelldrilling.com/modules/module_109/publisher_vie
w_product.asp?iEntityId=686&mids=a149a164a deep sea delta ,
especially suitable to operate in hard weather improving efficiency
Product
Senere opkbt af British Airways
http://www.iccompanys.com/cds/showpage.asp?nodeid=97451
creating leading northern clothing company based on strong brands.

http://www.iccompanys.com/cms/res/36854/65494/74401/87308/Fu
sionsprospect_DK.pdf - economies of scale throughout the value
chain, gaining important brandsthat gives the possibility for growth
in the future Product
http://www.eniro.com/en/Press/Pressreleases/2001/?location=http%
3a%2f%2fse.yhp.waymaker.net%2firxml%2frelxml.asp&wayid=22
776 buying the largest publisher in Poland, becoming market
leader after the acquisition Overcapacity
Private company, not listed
Opkb af leading business in Korea
http://www.reckittbenckiser.com/RBTemplates/MediaLatestNewsIte
m.aspx?pageid=112 - Access to the growth market in Korea
critical mass to RB, possibility to sell key products in Korea,
Geographic fil-in acquisition Geographic
http://www.themanufacturer.com/uk/detail.html?contents_id=1200
They are both specialists in each area and together they can create
synergies by cost cutting.
http://www.thisismoney.co.uk/news/article.html?in_article_id=3666
89&in_page_id=2&in_a_source=This%20is%20Money - European
market leader. They complete the acquition due to a goal of
geographic expansion, however, the target keeps it name -

316 /
85885

Exel plc
Logistic management
business

FX Coughlin Group

317 /
85902

Grand Hotels
(Cumberland)
Acquisition Company
Ltd
BENFIELD GREIG
LTD (BFD)
- insurance broker

Cumberland Hotel

319 /
86043

CGNU plc
Renamed Aviva in
2002 (AV)
Insurance group

Mebit Rt

320 /
86268

HSBC Holdings plc HSBA banking


services
MBNA Europe Bank
Ltd private company,
credit card

Demirbank TAS

318 /
85910

321 /
86455

EW BLANCH
HOLDINGS, INC.

Abbey National plc's retail


credit card assets

Geographic
Delisted dec 2005
http://www.mhmonline.com/viewStory.asp?nID=2871 - significant
opportunity to strenghten presence in global automotive market
http://www.logisticsonline.com/Content/news/article.asp?Bucket=A
rticle&DocID=c2960626-1882-11d5-a77000d0b7694f32&VNETCOOKIE=NO - even better service to
existing and new customers Geographic
Not included

http://www.benfieldgroup.com/NR/rdonlyres/E43AC9E3-33894648-8EF1-8C72F2709FA0/0/2001reportaccounts.pdf
http://www.benfieldgroup.com/Media+Centre/Press+Releases/Benfi
eld+Greig+completes+Tender+offer+for+EW+Blanch+Shares2.htm
- enhance geographic reach, become world leading reinsurance
intermediary
http://www.insurancejournal.com/news/international/2001/04/17/12
857.htm - Complementary in products and geographic scope
become worlds 3 largest, both highly innovative and focused on
clients, become a powerful competitor in all key areas
Overcapacity
Kun regnskab fra 2004, aktiekurs fra 2001
http://www.insurancejournal.com/news/international/2001/03/21/12
802.htm - expand in eastern europe, foothold in hungary- growth
opportunities Market
http://www.aviva.com/index.asp?PageID=44&category=corporate&
year=2001&newsid=793 - Platform for further growth in eastern
europe
AR 2001 merged with existing Turkish activity to offer a full
range of financial services, enhances their presence. Overcapacity
Not listed
http://www.mad.co.uk/Main/News/Sectors/FinancialServices/Articl
es/e5ebfdd8dae5421fb17a4095c4c3a9e8/Credit-card-issuers-go-onthe-defensive.html Consolidation within the business, only the

322 /
86472
323 /
86475
324 /
86572
325 /
86628

326 /
86687
327 /
86772

328 /
86787
329 /
86802
330 /
86837

Logica plc LOG,


LogicaCMG,
telecommunications
Dimension Data
Holdings plc DDT,
IT infrastructure
solutions
Document Management
Services Ltd
Visma ASA software
supplier

Hyder Services

biggest can obtain economies of scale - Overcapacity


Not included due to lack of information.

Premier Systems
Integrators LLC

http://www.mbendi.co.za/a_sndmsg/news_view.asp?I=17937&PG=
35 - technical skills that are necessary in the future R&D

Astron Group Ltd, The

Telenor ASA (TEL)


telecommunications
operator
Reuters Group plc
(RTR) information
company

COMSAT mobile
communications

No information about the deal perhaps a merger where Astron


continues
Merger renamed Visma Software ASA
Not listed
http://www.visma.com/archive/visma_com/AnnualReports/Annual
%20Report%202001.pdf merger with largest competitor, very
strong position in Norway and Sweden Geographic
The range of software offered has become broader pooling of
interest merger.
http://www.telenor.com/reports/2001/pdf/report2001.pdf Becoming
the worlds largest player in mobile media technology - Market

British Land Company


plc, The (BLND)
Real estate
investor/developer
London Electricity
Group plc electricity
distribution
SAGE GROUP PLC,
THE (SGE)
Business management

22 Homebase Ltd do-ityourself stores

SPCS Group ASA

Bridge Information
Systems Inc.

CSW Investments plc


INTERACT COMMERCE
CORPORATION

Zephyr: Through acquisition Reuters will achieve a strategic goal.


Gain a large base among institutional investors, gain leading trading
and order routing technologies.
http://www.about.reuters.com/home/materials/investorrelations/inve
storinformation/archivedreportsandaccounts/2001_2.pdf - enhance
presence in US, and expand product offerings. Primarily to achieve
penetration of US market Market
http://www.britishland.com/history5.htm - Extension of retail
property business Product
They merge with three other companies in 2003 (The year after this
deal) and they are not listed, meaning we will not be able to analyze
the performance separately.
http://www.investors.sage.com/strategy/growth_strategy/acquisition
_strategy/ Overall growth strategy: Broaden product PF, enter new
markets

software

331 /
86842
332 /
86977
333 /
87009
334 /
87016

335 /
87143
336 /
87320

337 /
87482

London & Regional


Properties Ltd
-Property investment
services
Real Estate
Opportunities Ltd
-Real estate investment
trust
Ledge 563 Ltd
-development and
running of hotels
Bass plc hotel
operator

Strand Palace Hotel

Center Parcs Ltd


-Holiday village
operator
Ineos Group Ltd
-chemicals
manufacturer

Oasis Holiday Village

Global Power Solutions


Ltd
-heating equipment
manufacturer

Clyde Bergemann Power


division

http://www.edfenergy.com/attachments/LE_Group_Review.pdf rationale: Customer relationship management (CRM) - Product


http://www.prnewswire.co.uk/cgi/news/release?id=65137 create
global force in software solutions gain CRM
Not listed
http://www.lrp.co.uk/uk/investment.php?subsection=UK%20Acquis
itions increase portfolio within one product area (hotels) - Product

Jermyn Investment
Properties plc

Not included

Heritage Hotels Ltd

No information about this deal

Posthouse Hotels Ltd

Not listed
Acquisition of hotel chain complement existing hotel business
product
http://www.mbplc.com/files/pdf/Posthouse040401.pdf - double no.
of hotels in their portfolio in home market- Product
http://nreionline.com/news/real_estate_bass_acquires_posthouse/ Overall aim of Bass: Establish Holiday inn as national brand
http://www.caterersearch.com/Companies/33990/center-parcs-ukgroup-plc.html - acquisition of holiday village Market

Degussa AG's
Phenolchemie unit

Not listed the third largest chemical company.


http://www.ineos.com/new_item.php?id_press=31 acquire world
market leader in phenolchemie after the acquisition: Ineos Phenol
is created Product (new/improved product line)
http://www.icis.com/Articles/2001/04/09/136371/another-majoracquisition-for-ineos.html - the industry is characterized by: high
raw materials costs and capacity increases last year. Demand is
expected to improve in the longer term. Improved capacity
Not included

338 /
87684
339 /
87717

Svenska handelsbankan
(SHB.A) banking
Westdeutsche
Landesbank
Girozentrale
Wilson Connolly
Holdings plc
property and real
estate developer
Citibank International
plc
-banking services

Midtbanken A/S

Aberdeen Asset
Management plc
(ADN)
-asset management
services
Hilton group PLC

Gresham Unit Trust


Management Ltd

Scandic hotels AB

Not included

Capio UK plc
healthcare company

Community Hospitals
Group plc

345 /
88213

Nobia AB (NOBI) kitchen interior


company

Enodis' Building &


Consumer Products
Division

346 /
88443

Halifax Group plc


(HBOS) financial
services

Bank of Scotland
(Governor & Co of)

Not listed
http://www.allbusiness.com/company-activitiesmanagement/company-structures-ownership/6064808-1.html gained a stronger platform in the UK Market
Listed in 2002 (after the acquisition of Enodis)
http://www.nobia.com/Documents/eng/Reports/Annual/annual_repo
rt_2001.pdf -Increased presence in kitchen and bathroom interior
and an extended geographic coverage securing position as
Europes largest kitchen interior company. Entered the UK market Market
Merger renamed HBOS
http://www.hbosplc.com/abouthbos/History/hbos_history.asp becoming the 5 largest financial service company in UK
Overcapacity

340 /
87753
341 /
87768

342 /
87992

343 /
88155
344 /
88190

Klckner & Co AG
Wainhomes plc

http://en.wikipedia.org/wiki/Handelsbanken -becoming the 5 largest


bank in DK - Overcapacity
Two companies acquiring the target, not included
One of the to being a bank
Delisted in October 2003 WC is acquired by Taylor Woodrow
Not included

People's Bank's UK credit


card business

Not listed, subsidiary of citigroup listet on NYSe, but separate


accounts
http://www.prnewswire.com/cgibin/stories.pl?ACCT=104&STORY=/www/story/04-062001/0001463931&EDATE= -Strengthen position in UK and
strengthen position as leading credit card issuer. Overcapacity
http://www.docs.cgiiversion.com/?id=3F8TW5ZG&page=10&size=2 They add some
life assurance agreements and some portfolio to their asset base
Overcapacity

347 /
88506

Cater Allen Ltd


-banking

Fleming Premier Banking

348 /
88777

Old Mutual PLC


(OML) asset
management, insurance
service
Amvescap plc (LSE:
AVZ) investment
manager (Invesco 2007
(IVZ))
DB investments
diamond mining
AMP (UK) Financial
Planning Ltd

Fidelity and Guaranty Life


Insurance Company

352 /
89200

Gyrus Group plc


medical device supplier
(GYG)

Richards

353 /
89232

Cadbury Schweppes plc La Casera SA


(CBRY)
Softdrink manufacturer

354 /
89385

Dimension Data
Holdings plc
DDT,

349 /
88781
350 /
88800
351 /
88918

http://www.thisismoney.co.uk/news/article.html?in_article_id=3647
25&in_page_id=2&in_a_source= - Cater allen (subsidiary) is
buying on behalf of Abbey National. Support and enhance existing
business. Buys a much larger player in the area Overcapacity
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2001/0
5/14/abbsa.xml - increase the share of wealthy customers by
acquiring FPB.
Old Mutual AR 2001: Increased presence within insurance services
in the US (first entry to this market)- Market

Pell Rudman & Co Inc.

http://www.invesco.com/about/history.html#5 Start a division


serving the wealthy individuals (a growing business) - Product
Also listed on LSE

DE Beers Consolidated
Mines
Towry Law plc

Not included

Proxicom Inc.

They buy a subsidiary.


Delisted Jan 2008
http://www.gyrusgroup.com/Pdf_AnnualReports/gyrusar_2001.pdf rationale for acquisition: to become a direct player in markets where
the can gain and hold leadership
http://www.mercatorcapital.com/press/pressrel-042701.html leading position, cross selling, cost savings. Technology, customer
base and distribution to accelerate growth and position in UK/US
market Geographic
http://www.cadburyschweppes.com/EN/MediaCentre/PressReleases
/la_casera_240701.htm - No 2 overall in spain, complementary
products, rationale: build up robust regional business. Strategic
benefits: regional distribution, strong presence in restaurants +
grocery. Geographic
http://www.dimensiondata.com/NR/rdonlyres/ABC939DF-F0A345EE-8FDD-88F8E6405C3E/6912/AnnualReport20011.pdf - ability
to deliver a full solution offering both integration and connectivity
requirements

355 /
89385
356 /
89393

Logica plc
(LOG)
Telecommunication, IT
consultancy
Vodafone Group plc
(VOD) mobile
telecom services
Dow UK plc

CMG plc

http://findarticles.com/p/articles/mi_m0EIN/is_2001_May_9/ai_743
65523 Acquisition to enhance e-business integration model, first to
market in the area Product
Annual report LogicaCMG 2002 Merger foced by pricing pressure
and overcapacity. Benefits of merger: Cross selling, lower operating
costs, increased scale and scope, consolidation - Geographic

Mobile Communications
Holdings Ltd

Not included

Ascot plc

n.a. not listed Datter af Dow chemical company, listed I US.

WSP Group plc (WSH)


Consultancy services

Jacobson & Widmark AB

359 /
89435
360 /
89844

Hafslund ASA (HN.A)


Electricity
Churchill Insurance
Group Ltd

Viken Energinett AS

http://www.wspgroup.com/upload/documents/PDF/financial%20rep
orts/annual_report_2001.pdf Aim to grow in UK and internationally.
Acquisition yields international reach and a strong presence in
northern Europe Market
Vertical integration, providing electricity to Norwegian customers.
Buy electricity utility, Zephyr Product
Two companies complete the acqusition together.

361 /
89873

MG Rover Holdings
Ltd - manufacturer of
motor vehicle

362 /
90091

Royal Bank of Scotland Euro Sales Finance plc


Group plc, The (RBS)
- Financial services

363 /
90099

Enterprise Inns plc


(ETI) pub operator

Morgan Grenfell Private


Equity's 439 pubs

364 /
90292

Wolseley plc (WOS)


Heating and plumbling
equipment wholesaler

Westburne Group Inc., The

357 /
89421
358 /
89433

Prudential Assurance
Company's UK general
insurance business
Powertrain Ltd

Not included due to lack of information

http://www.investors.rbs.com/investor_relations/announcements/Rel
easeDetail.cfm?ReleaseID=154944 Foothol in FR, Ger, NL
complementing the existing invoice business. Strategy: expand to
new markets for growth Market
http://www.answers.com/topic/enterprise-inns-plc?cat=biz-fin Pub
operator, buying pubs in UK - Geographic
http://www.wolseley.com/uploads/annualreports/WOS_AR_2001.p
df -Important acquisition. Complement existing US business,
significant foothold in Canada, later on improved through bolt on.
Integration will lead to synergies, cost savings, and greater
efficiencies - Market

365 /
90442

UPM-Kymmene Oyj
(UPM.1V) paper
manufacturer

G Haindl'sche
Papierfabriken KGaA

366 /
90456

Norske Skogindustrier
ASA (NSG) paper
manufacturer
Telia AB (TLSN)
Teliasonera telecom
services

Walsum paper mill

368 /
90548
369 /
90808

Centrica plc

Humber Power Ltd

Unite Group plc (UTG)


student
accommodation service

Unilodge Holdings (UK)


Ltd

370 /
90917
371 /
91378
372 /
91588

AP Mller Group

Wijsmuller Groep Holding


BV
Ramada Jarvis London

CGNU plc rebranded


Aviva in 2002 (AV)
insurance

Fortis Australia Ltd

373 /
91626

International Power plc


(IPR) electricity
provider

Rugeley Power Station

374 /
91664

Fenwick Ltd - retail

Bentalls plc

367 /
90499

Private Investors

Sonera Oyj

http://w3.upmkymmene.com/upm/internet/cms/upmcms.nsf/$all/22d0c428e9a4f59
0c2256d2b003e628d?OpenDocument&qm=menu,6,7,0&smtitle=Fi
nancial%20Reports Strenghten product portfolio, complements
eachother well, gain increase use of recycling fibre synergies.
Acquisition of 4 paper mills Product
http://www.norskeskog.com/About-us/History.aspx Part of their
European expansion Market
http://www.teliasonera.com/investor_relations/reports/annual_report
/2002/in_english.pdf Leading telecom provider in Sweden obtain
leading position in Finland and improved position in Baltic region
leading Nordic and Baltic telecom operator - Market
Not included because more the none company complete the deal
together.
http://www.unitegroup.co.uk/data/Reports/Annual%20Report%202001.pdf
Significant no of new beds becomes no. one provider. Able to
accommodate larger client base 1 Y + 2-3Y students. Increased
capacity Product
Not included because it is not a individual company.
Sale and lease back of 11 entities. Acquired by private investors.
http://www.eofhr.org/jobs/Press-CGNU-strengthens-Australianbase-17535.htm Strengthen the current position in Australia,
yielding a top position. Possibilities of cost savings, and good match
with current operations - Market
AR 2001: rebalance and improve European portfolio. Increase
capacity Overcapacity
http://production.investis.com/ipr/news/press/pr2001/2001-06-11/ grow regional business, complement existing assets, Give balance
and improvement to their single asset position
Not listed
Industry review, overcapacity in retail sector in UK
http://www.thisismoney.co.uk/news/article.html?in_article_id=3626
77&in_page_id=2&in_a_source= - Good fit with current portfolio,

375 /
91691

George Wimpey plc


- housebuilding
- mangler ticker

Laing Homes Ltd

376 /
91703
377 /
91940
378 /
92017

Pohjola-Yhtym Oyj

Conventum Oyj

Farnell Holding Ltd

Buck & Hickman Ltd

Churchill Insurance
Group Ltd

AMP Ltd's UK-based


general insurance business

379 /
92117

Enterprise Inns plc


pub operator (ETI)

Scottish & Newcastle plc's


432 pubs

380 /
92124

Noble House Leisure


Ltd pub and
restaurant operator
Johnson Matthey plc
(JMAT) Chemicals
company
Misys plc (MSY)
software product and
solutions provider
Misys plc

Scottish & Newcastle plc's


214 pubs

Ultraframe plc
roofing constructor
- mangler ticker

Four Seasons Group

381 /
92276
382 /
92282
383 /
92370
384 /
92487

will keep its own name


http://findarticles.com/p/articles/mi_qn4158/is_20010629/ai_n1439
9567 - acquiring a small company, highly competitive industry
needs to consolidate to be in industry. Geographically
complementary south of England and mid England
Overcapacity
Delisted in june 2007 (Taylor Winpey plc)
AR 2002: Strategic aim: Grow premium home business in UK in
one step and with little risk. LH is strong in this area and has a
strong brand. - Product
Delisted in june 2006
Not included
Holding company and thereby no income.
Not included
Not included
http://www.scottishnewcastle.com/snplc/ir/fininfo/transactions/retaildisposals/2001-0618/ Pub operator buying pubs in England Geographic
Not included

Meconic plc

http://www.matthey.com/media/news/Meconic_0701.html Existing
products in new markets - Market

DBS Management plc

http://findarticles.com/p/articles/mi_qn4158/is_20010620/ai_n1439
3557 Enable Misys to expand its own IFA network and merge the
two e- commerce units in that sector Product
http://www.misys.com/pdf/investors/reports_accounts/reports_archi
ve/2001/file2116_Report_and_Financial_Statements.pdf Strengthen
the product base Product
Delisted august 2006
http://findarticles.com/p/articles/mi_m0EIN/is_2001_June_27/ai_75
953732 - vertical integration, secure fast penetration to market in
offering both fabrication and delivery.
http://archive.theboltonnews.co.uk/2001/6/26/671213.html - bought

Sunquest Information
Systems Inc. (Old)

385 /
92550

Easynet Group plc


network owner
- mangler ticker
Invesco plc

Ipsaris Ltd

387 /
92727

Serco Group plc (SRP)


service company

AEA Technology plc's


consulting division

388 /
92848

Eniro AB (ENRO)
publications

Direktia Ltd

389 /
93388

BP plc (BP) oil


exploration and
production service
Dynegy Europe Ltd

Cairns Ltd

SanomaWSOY Oyj
(SWS1V) media
company

VNU NV's consumer


magazine publishing
business

392 /
94671

Compass Group plc


(CPG) Food service

Vendepac Ltd

393 /
94924

Sportingbet.com (UK)
plc (SBT) sportsbetting

SportsBook.com

394 /

Nordbanken AB

Postgirot Bank AB

386 /
92715

390 /
94355
391 /
94436

Grand Pacific Investment


& Development Co Ltd

BG Storage Ltd

its american rival (market leader in fabrication in NA)


http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2001/0
6/27/cnult27.xml - break into NA market - Market
Delisted in February 2006
Not included
Not included due to lack of information.
http://www.serco.com/Images/Prelims2001AnnualReviewandSumm
aryFinancialStatement_tcm3-1410.pdf Streghten the companys
position in science R&D
http://www.serco.com/text/media/pressreleases/2001/007_2001.asp
- strenghten science and technology base
http://www.eniro.com/upload/Corporate/Investor%20Relations/Fina
ncial%20reports/Annual%20report2001.pdf Direktia is integrated
with existing business in FI and Eniro becomes market leader in a
highly fragmented industry - Geographic
http://www.chemie.de/news/e/3814/ Strategic acquisition, increase
share in Tangguh, a long-term competitive supply source,, securing
their place in the market Overcapacity
Not included because it is owned by a US based holding company
http://www.puzzlermedia.com/news.asp?Cont=NC5&Nav=N5&Titl
e=5&page=05&PR=06 New international dimension to the
portfolio, strong presence on a number of new markets, market
leader in 5 new markets. An important platform for future growth
Market
http://www.compasscanada.com/home/media/results/20011130_financials.pdf Becomes
worlds largest in the vending machines market - Geographic
AR 2001/02 market, focussed on US and became the worlds
leading online betting company
http://www.taxnews.com/archive/story/Sportingbet_Acquires_SportsBook_Will_St
ay_In_Alderney_xxxx4685.html Market
http://findarticles.com/p/articles/mi_m0EIN/is_2001_July_31/ai_76

94948
395 /
95018

-ejet af nordea bank AB


(NDA)
Nokia Oyj (NOK1V) - Amber Networks
telecommunications

861507 Strengthen their position in the Swedish market Product


http://www.nokia.com/A4136002?newsid=828256 Acquired due to
edge routers a mean to be able to shape the future mobile network
architechture. Amber Networks' premiere products and technology,
exceptional engineering talent and expertise in high availability
multi-service routing will enhance Nokia's already strong leadership
in mobile networks R&D
Delisted in 2007, Taylor Wimpey
From George Wimpey AR 2001 improve reach, more evenly base
in the entire UK by improving base in south England - Market

396 /
95183

George Wimpey plc


- house building,
mangler ticker

Alfred McAlpine Homes


Holdings Ltd

397 /
95336

Nestor Healthcare
Group plc (NSR)
- Helathcare services
Innogy Holdings plc

HCMS Ltd
(Holding for Healthcall)

http://ww7.investorrelations.co.uk/nestor/uploads/reports/annrep01.
pdf - product, Significantly strenghten one of two product areas.

Northern Electric plc's


supply business
Crothall Services Group

Not included.

398 /
95515
399 /
95544

Compass Group plc


(CPG) Food service

http://static.digitallook.com/digitalcorporate/cms/25/assets/CO
MPASS_ANNUAL_2002.pdf Provide healthcare facilities to
support one of the existing business unit - Product
http://www.danisco.com/cms/connect/corporate/media%20relations/
news/archive/2001/august/investor_93_en.htm Provides Danisco
with the missing platform in AUS/new Zealand - Market
Part of British land company.

400 /
96156

Danisco A/S (DCO)

Germantown International
Ltd

401 /
96225

BL Davidson Ltd

Asda Property Holdings


plc

402 /
96227

WPP Group plc


(Already found)

Tempus Group plc

403 /
96385

Fellesdata AS

404 /
97119

EDB Business Partner


ASA
(EDBASA)
(Software developer)
WEL Property Limited
Partnership

Benchmark (Jersey) No1


LP

Non data at all.

405 /

London & Regional

Hilton Hotel Park Lane

Not enough data.

http://www.wpp.com/NR/rdonlyres/26E3429A-F345-40BF-881DF86B12F10979/0/2001_ar_whole.pdf They improve their market


coverage especially in the US, Asia and Latin America Market
http://hugin.info/194/R/1003001/153946.pdf They create 4 business
units where it-support to financial institutions is one unit Product

97159
406 /
97295
407 /
97369
408 /
97739
409 /
98105
410 /
98227
411 /
98249
412 /
98515

413 /
99328

414 /
99355

Properties Ltd
(Not listed)
(Property investment)
Abbot Group plc
(ABG)
(Drilling company)
Allied Domecq plc
(Delisted)
(Alcoholic beverages)

Deutsche Tiefbohr AG

http://www.abbotgroup.com/pdf/ar2001.pdf They get the final piece


of the puzzle (Germany) Overcapacity

Kuemmerling GmbH

Greene King plc


(GNK)
(Pub operator)
Mondi Packaging (UK)
Ltd

Old English Inns plc


Danisco Pack Ltd

http://www.allbusiness.com/banking-finance/financial-marketsinvesting-securities/6171786-1.html They add to their existing


operations in Germany. They are bought by Pernod Ricard in 2005
Market
http://ww7.investorrelations.co.uk/greeneking/uploads/press/GKAR
_2001_2002.pdf They get a lot of new locations which was need to
keep their position Geographic
Not enough data. Regarding the deal.

MoneyGuru Group plc

Synergy Seminars Ltd

Only financial data back to 2002 and the deal takes place in 2001.

Portman Building
Society Ltd
(Not listed)
(Building society)
Marlborough Stirling
plc
(Delisted, bought by
Vertex in 2005)
(Financial software
developer)
Sveaskog AB
(Not listed)
(Forest service and
Sawmill production)

Sun Bank plc

http://www.prnewswire.co.uk/cgi/news/release?id=73424 They
expect Sun Bank to support their already existing financial services
Overcapacity

Exchange FS Group plc

http://moneyextra.uk-wire.com/cgibin/articles/200503080700474492J.html They expand their ecommerce software Product

AssiDomn AB

http://www.sveaskog.se/upload/PDF/Financial%20Information/Svea
skog%202001_eng.pdf They just increase their portfolio - Product

Coloplast A/S
(COLO.B)
(Medical devise
manufacture)

SSL International plc's


incontinence products unit

http://www.coloplast.com/ECompany/CorpMed/Homepage.nsf/0/dd
8d783fd9ea62a9c1256c75002fb024/$FILE/ATTW39NK/Annual%2
0Report%2001-02%20GB.pdf They get a better presence at the
British market Market

415 /
99667

TXU Europe Group plc


(Already found)

Amerada Hess Corp's UKbased gas and electricity


supply business

Subsidiary of TXU company in US, no financial data, and not listed

416 /
99708

BG Group plc
(Already found)

Enron Oil & Gas India Ltd

417 /
99862

Wihlborgs Fastigheter
AB (old)
(FABG, listed in 2001)
(Real Estate
management service)
Network Rail Ltd

Postfastigheter AB

http://www.bg-group.com/about/strategy.htm#strat They always


look for a good project and this one just happen to be located in
India Overcapacity
http://www.fabege.se/upload/pdf/2001/2001_engelsk.pdf They
increase portfolio - Product

Railtrack plc

Not enough data.

Observer AB
(CSN)
(Media monitoring
service)
Cable & Wireless plc
(Already found)

Bacon's Information Inc.

http://feed.ne.cision.com/wpyfs/00/00/00/00/00/06/C2/9A/wkr0001.
pdf They get access to the American market - Market

Exodus Communications
Inc.'s assets

Posten AB
(Owned by the
Government of
Sweden.)
(Post delivery)
Fenner plc
(FENR)
(Lifting belt
manufacture)
Centrica plc
(Already found)

DSV Parcel Holding A/S

According to Zephyr. They make the purchase because Exodus fits


well to Cable & Wireless strategy, product, and costumer base
Product
http://cws.huginonline.com/P/134112/PR/200110/886832_2_12.htm
l They can now deliver the service of international distribution
Product

Seymour Pierce Group


plc
(Not listed)
(Asset Management)

418 /
99864
419 /
100092
420 /
100150
421 /
100257

422 /
100796
423 /
101073
424 /
101174

Unipoly Enerka Holdings


UK Ltd

http://www.inddist.com/article/CA239441.html The market is under


a lot of pressure and companies buy their suppliers to create good
relationships Product

Goldfish Credit Card


Holders Names

Sold back to Lloyds in 2003.

Antfactory Holdings Ltd

According to Zephyr. They will increase their asset management.


Changed name to Investment Management Holdings plc in
December 2003 Overcapacity

425 /
101184

Royal Bank of Scotland


Group plc, The
(Already found)
Allied Domecq plc
(Already found)

Scottish & Newcastle plc's


456 leased pubs

Not included

Diageo plc's Malibu


liqueur

The Malibu brand is sold again in 2002.

London Electricity
Group plc
(Already found)
Topland Group plc

West Burton power station

http://www.edfenergy.com/attachments/Accounts.pdf They gain


another facility Overcapacity

Diamond Property
Holdings Ltd

No documentation, but look like product because a real estate


investment company buy a property developer.

London Electricity
Group plc
(Already found)
Wrtsil Oyj Abp
(WRTBV)
(Marine propulsion
engine manufacture)

24seven

According to Zephyr. They increase their number of costumers in


Eastern England due to this deal - Geographic

John Crane-Lips

According to Zephyr. They buy a complementary activity to their


own marine business Product

Vosper Thornycroft
Holdings plc
(VTG)
(Defense, Technical
and service support
contractor.)
YTL Utilities (UK) Ltd

Merlin Communications
Group Ltd

According to Zephyr. They buy a new support unit with relations to


radio and satellite maintenance support, and they get new
opportunities with respect to products and markets R&D

Wessex Water Ltd

Non data available.

MGR Capital Ltd

Rover Financial Services


(GB) Ltd

Not enough financial data available and no webpage. Does not exist
anymore.

434 /
102408

Svenska Cellulosa AB
(Already found)

435 /
102757

Bakkavr Group HF
(BAKK)
(Food producer)

Encore Paper Company Inc http://www.sca.com/documents/en/Annual_Reports/Annual_Report


_2001_en.pdf They increase their market share to 19% and the two
product mixes fits good together - Overcapacity
Katsouris (Fresh Foods)
According to Zephyr. They can increase the chilled food product
Ltd
line due to this deal Product

426 /
101378
427 /
101398
428 /
101438
429 /
101639
430 /
101985

431 /
102027

432 /
102225
433 /
102404

436 /
102800

Svenska Cellulosa AB
(Already found)

Cartoinvest SpA

437 /
102972
438 /
103023

Press Acquisitions Ltd

Telegraph Group Ltd

Pubmaster Group Ltd

Inn Partnership Ltd

439 /
103352
440 /
103477

British Gas Trading Ltd Enron Direct Ltd


Assa Abloy AB
(Already found)

Tesa Hardware

441 /
103637

Launchchange Ltd

Viridor Instrumentation
Ltd

442 /
103779

Lloyds TSB Group plc


(LLOY)
(Banking Service)
Teleca AB
(TELC.B)
(Software solutions to
companies)
Moss Pharmacy

First National Vehicle


Holdings Ltd

Smith & Taylor


Pharmacies Ltd's 59
pharmacies

They are merged with Alliance in 2005 and only the financial
statements from that group are to be found.

445 /
104015

Rexam plc
(Already found)

Crown Cork & Seal


Company Inc's beauty
pumps business

According to Zephyr. This deal supported their wish about building


a stronger position within the American market Product

446 /
104055

Alliance Unichem plc


(Already found)

Dudley Taylor Holdings's


59 pharmacies

According to Zephyr. They make a vertical merger, they are a


retailer and buy a chemist Product

447 /
104275

Kemira Oyj
(Already found)

Vinings Industries

http://www.kemira.com/Group/English/General/Kemira+in+brief/Vi
sion_strategy/Acquisitions/17122001.htm They want to become a

443 /
103786
444 /
103995

AU-System AB

http://www.sca.com/documents/en/Annual_Reports/Annual_Report
_2002_en.pdf They gain 27% of the European market due to this
deal Overcapacity
They act like an advisor to the management of the newspapers in the
group. Not included
http://news.bbc.co.uk/1/hi/england/1714220.stm They can add 1250
new pubs to their portfolio and they become more visible in the
South East part of England Geographic
According o Zephyr. With the deal they double their gas supply
services Overcapacity
http://www.assaabloy.com/Global/Investor_relations/Annual%20rep
ort/2000/AR2000eng_3_Countrysections.pdf They want to get a
better position within the Spanish market, and additionally they get
a lock system used in a lot of hotels Market
Only unconsolidated data available.
http://www.investorrelations.lloydstsb.com/media/pdf_irmc/ir/2002/
2002_LTSB_Group_R&A.pdf They make the deal to keep their
position as market leader Overcapacity
http://www.teleca.se/media(171,1033)/Annual_Report_2002.pdf
They gain a new technology which they use to sell more to their
costumers R&D

448 /
104378

significant player in the American market - Market


http://findarticles.com/p/articles/mi_qn4158/is_20011220/ai_n1443
5085 They now can help the costumers to setup the software which
support their financial services Convergence

Skandia Insurance Co.,


Ltd
(Not listed)
(Financial Service)
IMO Car Wash Group
Ltd

Lynx Group plc

Toman Handels- und


Beteiligungsgesellschaft
mbH

Not enough financial data.

450 /
105147

Den norske Bank ASA

Skandia Asset
Management

Was bought in 2004 and the deal took place in 2002.

451 /
105245
452 /
105472

Shell Resources Plc

Enterprice Oil plc.

Not included, acquisition vehicle

Wecan Electronics Oyj


(SCF1V)- telecom

Scanfil Oyj

453 /
105572

Dr Allan McClay

454 /
105788
455 /
106547

Yell ltd.

Galen Holdings plcs


clinical trial services
division
McLeodUSA Incs
directories business
Technal SA

According to Zephyr: WECAN: aim to create world class vertically


integrated supplier
http://www.scanfil.fi/tiedotteet/Scanfil_Annual2002_e.pdf Product, obtain vertical integration
Not included

456 /
106574
457 /
106601

GE Capital Bank Ltd.


credit institution
services
Centrica plc (CNA)
-energy provider

458 /
107171

Xstrata plc (XTA) mining

449 /
104924

459 /

Hydro Aluminium AS
- producer of
aluminium

Time Retail Finance Ltd.


Enbridge Services Inc

Glencore International
Ags Autralian and South
African coal business
UAG UK Holdings Ldt. Sytner Group plc

Not listed and no financial data Not included.


Not listed private company
http://www.hydro.com/upload/Documents/Reports/Annual%20repor
ts/hydro_annual_report_2002_en.pdf Improve market position in a
no. of countries - Overcapacity
Not listed and no financial data Not included.
http://www.centrica.co.uk/index.asp?pageid=39&newsid=125&type
=17&year=archive More than double customer base in Canada Overcapacity
http://www.answers.com/topic/xstrata-plc?cat=biz-fin Want to
become a world leader in mining, buying GIs interest in AU and
ZA expands reach - Overcapacity
Not listed and no financial data, mother company is listed in US

107269
460 /
107336

Provident Financial plc.


(PFG) insurance
service

Yes Car Credit ltd.

461 /
107361

BOC Edwards

462 /
108121

SCOTTISH &
NEWCASTLE PLC
(SCTN) beer
producer
SMITH & NEPHEW
PLC (SN) medical
device manufacturer

Seiko Instruments Incs


turbomolecular pump
business
HARTWALL ABP OYJ

463 /
108143
464
/108166
465 /
108260

ORATEC
INTERVENTIONS INC

SunGard A.S Ltd.


Guardian IT plc.
information availability
services
London Clearing House Clearnet SA
Ltd. clering house
services (financial
services)

466 /
108477

Greene King plc


(GNK) - puboperator

Morrells of Oxford ltd.

467 /
108558
468 /
109636

Fastighets AB Tornet

Amplion Fastighets AB

Alfred McAlpine plc

Stiell Ltd

469/
109782

Scottish & Southern


Energy plc (SSE)

Ferrybridge power station

Not included.
Zephyr: Insurance buying car finance, unique business model and
similar customer base.
http://investmentideas.co.uk/2005/03/17/provident-financial/
Acquire a car dealership that sells used cars and offer financing Convergence
Lack financial data and not listed Not included.
http://www.investis.com/snplc/downloads/2002-0214.ppt#484,4,S&N Zephyr: build strong European position, this
acquisition adds a strong position in Finland - Market
http://global.smithnephew.com/cps/rde/xbcr/smithnephewls_master/AR02.pdf29.pdf
Zephyr: Oratec brings advanced technologies to S&N and helps
maintain strong growth momentum R&D
http://www.allbusiness.com/company-activitiesmanagement/company-structures-ownership/5937530-1.html Access
to facilities, platforms, network capacity - Product
http://www.euronext.com/news/press_release/press_release-1731EN.html?docid=59782
http://www.thebanker.com/news/fullstory.php/aid/388/Route_finally
_open_for_LCH-Clearnet_merger.html
http://www.euronext.com/fic/000/010/890/108908.pdf Offer the
customer more choices and better terms of trading a requirement
in connection top the creation of euronext - Overcapacity
http://ww7.investorrelations.co.uk/greeneking/news/showPress.jsp?r
ef=87&cat=2 Roll up of smaller operator in oxford area
Geographic
Zephyr, strengthen market position on home market - Geographic.
Delistet in june 2006 ( acquired by Fabege).
Zephyr: add strength and scope to existing business
http://www.contractjournal.com/Articles/2002/04/19/33037/alfredmcalpine-snaps-up-stiell.html - Product
Zephyr: consistent with our strategy of acquiring assets which can
be successfully integrated into our existing business. Diversity of

energy services
470 /
109902

ICAP plc (IAP)


stockbroking services

First Brokers Securities


Inc.

471 /
110339
472 /
110348
473 /
110518

First Aqua Ltd.

Southern Water plc.

GROUP 4 FALCK A/S

WACKENHUT
CORPORATION, THE
Regional Independent
Media Holdings ltd.

474 /
110622

BPB plc

James Hardie Industries


NVs US wallboard
businesses

475 /
111154

South African
Breweries plc (SAB)
Renamed: SABMillerbrewery

Miller Brewing Company

476 /
111255
477 /
111350

Cendant Bidco

Ebookers plc

478 /
111381

ITV plc (ITV)telecommunication

Johnston Press
plc.(JPR) media
group

Cadbury Schweppes plc Pfizer Incs Adams


(CBRY) regnskab er
division
hentet sotfdrink and
confectionary business
Carlton Communications
plc

our generation portfolio, particularly in the mid-merit sector, and


will help us meet peak demand for electricity - Overcapacity
Fra orbis, kun regnskab fra 2005
Fra zephyr: Mr Michael Spencer, CEO of ICAP plc said "First
Brokers has a very strong market position in U.S. corporate bonds
which compliments our leading position in non-corporate bonds and
our electronic broking capability - Overcapacity
Acquisition vehicle created especially to carry out this acquisition.
Possibility to sell out right after
Not included
http://www.johnstonpress.co.uk/jpplc/aboutus/history/ (RIMH raises
Johnstons portfolio to 244 titles, many of them market leaders,
cementing its position as a leading UK regional publisher.)
http://www.johnstonpress.co.uk/jpplc/mediacentre/pressreleases/ind
ex.jsp?ref=40 Overcapacity
http://www.bpb.com/main.asp?page=413 They will get 16% of the
American market and be able to decrease manufacturing costs as
well as become the number one manufacturer of plasterboard
ceilings - Overcapacity
Zephyr: SABMiller no. 2 globally, positioning well to handle
ongoing consolidation in global industry. gain significant access to
the US market
http://www.laprensa-sandiego.org/archieve/june14-02/miller.htm
Market
Acquisition vehicle of US based company. No information
http://www.cadburyschweppes.com/EN/AboutUs/Heritage/Acquisiti
onsDisposals/ -Creating the worlds largest confectionary business
and gained access to new markets (esp. Latin America)
http://www.victoryseeds.com/candystore/confectioners/pr/pr_cadbur
y_adams_121702.htm -result of acquisition: a unique portfolio, new
strong brands Product
ITV is created in the merger of Granada and carlton.
Mangler regnskab fra 2007
http://www.itvplc.com/itv/merger/reasons/ - to be able to compete in
the UK market - Geographic

479 /
111469

DAVIS SERVICE
GROUP PLC, (DVSG)

SOPHUS BERENDSEN
A/S

480 /
111674
481 /
113020
482 /
113041
483 /
113059

Instrumentarium Oyj

Spacelabs medical Inc.

Praedia Investments
Ltd.
Gannett UK Ldt.
publishing
JOT Automation Group
Oyj (EBG1V)
renamed electrobit
group after merger
automation
manufacturer
Enterprice Inns plc
(ETI) pub operator

Beaucette Property
Partnership
SMG Publishing Ldt.

LOMBARD NORTH
CENTRAL PLC banking and asset
finance
WOLSELEY PLC
(WOS) Heating and
plumbling equipment
wholesaler
CENTRICA PLC
(CNA)
-energy provider

DIXON MOTORS PLC

http://www.referenceforbusiness.com/history2/81/The-Laurel-PubCompany-Limited.html Buying 1900 tenated pubs in England


Geographic
Subsidiary of RBS acquire a car dealer, not included

CLAYTON
ACQUISITION
COMPANY

Zephyr: complement existing business in US


http://www.secinfo.com/d12crf.33m.d.htm - product, acquisitions to
enhance existing product portfolio - Product

CENTRAL POWER AND


LIGHT COMPANY

CADBURY
SCHWEPPES PLC
(CBRY)

DANDY A/S

http://www.centrica.co.uk/index.asp?pageid=39&newsid=121&type
=17&year=2002 - increase presence in texas area
http://tdworld.com/news/power_centrica_completes_purchase/ - 3
largest retail energy provider in texas important milestone Overcapacity
http://www.cadburyschweppes.com/EN/InvestorCentre/PressReleas
es/2002/PressReleaseContent.htm?ID=%7b2AF74F87-3F05-4AF9B087-8037A7A10B77%7d Extents participation in chewing gum
market, fast growing market, obtain a no 2 position in chewing gum
market - Product

484 /
113219
485 /
113263
486 /
113604
487 /
113615

488 /
113766

Eletrobit Oy

Laurel Pub Group Ltd.

DSG AR 2002:
http://www.dsgplc.co.uk/investors/reportandaccounts/?
filterType1=fiscalDate&year=2003 expanding operations globally.
Service in 6 countries, marketleader in Scandinavia. Market
Delistet in January 2004
Opkbt af GE healthcare i 2003
Bought by a consortium not included
http://www.gannett.com/news/pressrelease/2002/pr122302.htm First
entry into Scotland - Market
Electrobit group AR 2002: Combine wireless telecommunication
specialist with automation expert to create a globally unique
production service concept - Convergence

489 /
114017

National grid group


PLc
- energy distributor

Lattice group plc

490 /
114536

EVOLUTION GROUP
PLC, THE (EVG)
financial services

BEESON GREGORY
GROUP

491 /
114589

ASSA ABLOY AB
(ASSA.B) manufacturing

BESAM AB

492/
114638

FRIENDS IVORY &


SIME PLC (FCAM)
- Asset management

ROYAL &
SUNALLIANCE
INVESTMENTS

493 /
114850

NESTLE UK LTD

494 /
114924

ELECTROLUX AB
(ELUX.B)
manufacturer

NORTHERN FOODS
PLC'S SKI AND MUNCH
BUNCH BRANDS
DIAMANT BOART
INTERNATIONAL

495 /
115159

ANGLO AMERICAN
PLC (AAL) mining
services

COMPANIA MINERA
DISPUTADA DE LAS
CONDES LIMITADA

http://www.ofgem.gov.uk/Pages/MoreInformation.aspx?docid=47&
refer=About%20us/enforcement/mergers/oft&order=3a British
Energy - Proposed Merger of National Grid Group plc and Lattice
Group plc to create National Grid Transco plc - Overcapacity
Evolution group plc, is a holding company for different financial
services companys. Acquisition of beeson Gregory establishes
evolution beeson Gregory focusing exclusively on investment
banking. Not included
From AR2002:
http://www.assaabloy.com/Global/Investor_relations/Annual%20rep
ort/2002/AR2002eng.pdf Automatic product and systems have so
far only had a limited part of AA portfolio, but fits well with
ambition to offer the best security/lock systems - Product
Renamed ISIS after this merger
Renamed F&C after ISIS merger with F&C asset management in
2004.
Not included
Not included
http://ir.electrolux.com/files/Electrolux_annualreport2002.pdf
Strenghten the existing position.
http://findarticles.com/p/articles/mi_m0EIN/is_2002_May_2/ai_854
05692 - product, combining DBI with existing operations created
the world leader in diamond tools - Product
http://www.angloamerican.co.uk/article/?afw_source_key=5B0DE0
D8-DE2A-456A-9ACB30DB71D44188&xsl_menu_parent=/newsandmedia/pressreleases/a
rchive2002/ Will complement existing business yield synergies Overcapacity
http://www.angloamerican.co.uk/article/?afw_source_key=37499A1
F-6688-4A86-A4C8950C6E1C8221&xsl_menu_parent=/newsandmedia/pressreleases/ar
chive2002/ Disputada, is a major strategic strengthening of
portfolio. It offers attractive exploration and growth prospects,
synergies with our existing operations and reinforces our
commitment to Chile and the region.

496 /
115312

EASYJET PLC (EZJ) GO FLY LTD


discount airline
operator

497 /
115382

SANDVIK AB
(SAND) equipment
manufacturer

VALENITE INC.

498 /
116593

WPP GROUP PLC


(WPP)
communication
services group

CORDIANT
COMMUNICATIONS
GROUP PLC

499 /
116697

WESTBURY PLC
-constuction services

PROWTING PLC

500 /
116761
501 /
116940
502 /
117345

KONE OYJ

PARTEK OYJ ABP

AXA-SUN LIFE
GROUP
MAN GROUP PLC
(Hegde fund and asset
mangement)
LUNDIN
PETROLEUM AB (Oil
and Gas)

MONTWELL LTD

503 /
117410

RMF INVESTMENT
GROUP
ISLAND PETROLEUM
DEVELOPMENTS LTD

Zephyr: seeks expansion in new flights and new routes.


http://www.easyjet.com/en/about/2001-2002FullYearResults.pdf product/market. Little overlap in destinations. The combining of
easyjet and go fly has yield an improved market presence - Product
Zephyr: Enhance position in US
http://www3.sandvik.com/pdf/annualreports/english2002.pdf strong and complementary brand US leader.
http://www.sandvik.se/sandvik/0010/internet/se01996.nsf/Press%20
Releases%20Web/3121711EF5F8A9DDC1256BDC0024428D
Operate Valenite as a separate company within its Sandvik Tooling
business area. Valenite will retain its own identity and continue to
operate its own R&D, manufacturing, marketing and distribution
channels - Geographic
http://www.allbusiness.com/marketing-advertising/4126055-1.html contribute to strategic goal marketing services and expanion to
Asia. Acquisition of competitor. strengthen Asia position,
healthcare marketing and direct marketing
http://business.timesonline.co.uk/tol/business/article1143363.ece Product
Delisted 13/2-2006, acquired by Persimmon plc.
http://archive.thisiswiltshire.co.uk/2002/5/20/187867.html Increased
capacitet
http://www.building.co.uk/story.asp?storyCode=1018577 Large
consolidation in industry creating large players
http://www.citywire.co.uk/adviser/-/news/market-andshares/content.aspx?ID=238198&Page=2 Customer base is
complementary - possibility of cost savings - Geographic
They are sold again shortly after this merger.
Not included - No available data regarding the deal and the acquirer
is part of a large global group.
Listed
According to Zephyr: They get a new dimension of their portfolio Product
Not included No information about this deal.

504 /
117729

GULLANE
ENTERTAINMENT PLC

Delisted in 2005
http://www.hitentertainment.com/corptimeline.html: They get new
brands and programs Product

VERPACKUNG +
DISPLAY
STABERNACK JR
PARTNER GMBH & CO.
KG
GWR GROUP PLC

Not listed
http://www.sca.com/documents/en/Annual_Reports/Annual_Report
_2002_en.pdf : They have a special advanced printing method
which strengthened Svenska Cellulosas positions - Product

Not listed
According to Zephyr: They get a stronger position in the US and
their products fit well together Overcapacity
Not included - More than one acquirer.

505 /
117753

HIT
ENTERTAINMENT
PLC
(Entertainments for
kids)
SVENSKA
CELLULOSA AB

506 /
117762

CAPITAL RADIO
PLC

507 /
118052

HANSON PLC
(Concrete manufacture)

CHOCTAW INC.

508 /
118191

HYUNDAI MOTOR
CO., LTD

509 /
118545

JOHNSON
MATTHEY PLC

510 /
119858
511 /
119958

COLLINS STEWART
HOLDINGS PLC
PEACOCK GROUP
PLC, THE
(Clothing retailer)
NATIONAL
EXPRESS GROUP
PLC
TRYG I DANMARK
SMBA
SVEASKOG AB

Hyundai Merchant Marine


Cos Automobile Transport
Operation
SYNETIX LTD
Listed
According to Zephyr: They improve one of their product lines
Product
TULLETT & TOKYO
Not included - Demerged in 2006.
LIBERTY PLC
BON MARCHE GROUP
Delisted in 2006
LTD
According to Zephyr: They add a new and higher quality brand to
their portfolio Product
STOCK
Listed
TRANSPORTATION
According to Zephyr: They want to improve their market position
LTD
within the North American Bus market Market
TRYG FORSIKRING A/S Not included - Not enough available data.
KORSNAS SAWMILL

LONDON &

RAILTRACK (UK) LTD

512 /
120023
513 /
120125
514 /
120465
515 /

Not included completion date in 2005

Not listed
http://www.sveaskog.se/upload/PDF/Financial%20Information/year
-end-report-2002.pdf : They acquire more forest in Sweden
Geographic
Not listed

121513

516 /
121857
517 /
121868

518 /
122409
519 /
122552
520 /
122592
521 /
124038
522 /
124653
523 /
125561
524 /
125922

CONTINENTAL
RAILWAYS LTD
(Channel tunnel rail
link operator)
AKERSHUS KRAFT
AS
OUTOKUMPU OYJ

http://www-935.ibm.com/services/uk/bcs/pdf/lcr_case_study.pdf :
They want to create high speed trains from St. Pancras Product
Norske Skogindustrier
ASA
AVESTAPOLARIT OYJ
ABP

NORTHERN ROCK
PLC (Residential
mortgage loan)
TESCO PLC

LEGAL & GENERAL


BANK LTD

HOME SERVICE GB
LIMITED (Emergency
pluming and electricity
service)
SPECTRIS PLC

HIGHWAY
EMERGENCY
SERVICES LTD

HERON
INTERNATIONAL
HOLDINGS (Real
Estate business)
MBNA EUROPE
BANK LTD (Credit
card issuer)

HIT

PHILIPS ANALYTICAL
BV

BRITISH LAND PLC


AND THE RANK GROUP
PLC'S JOINT VENTURE
LEISURE COMPANY
ALLIANCE &
LEICESTER PLC'S
CREDIT CARD
BUSINESS
SCOTTISH &
DYNEGY HORNSEA
SOUTHERN ENERGY LTD
PLC

Not included - More than one aquirer.


Listed
http://www.outokumpu.com/files/Group/Investor/Documents/AR_e
ng_2001.pdf : The market is mature and they have to growth.
Product, they transform the company from being a capital intensive
business to become a knowledge based one where AvestaPolarit is a
subsidiary in one of the business units Overcapacity
Delisted
According to Zephyr: They increase their asset base Overcapacity
Listed
According to Zephyr: They expand their concept to Poland as part
of their strategy of becoming the leading hypermarket owner in
Europe Market
Not listed
According to Zephyr: They now also can offer glass, frame and
locks emergency services Product
Listed
According to Zephyr: They get X-ray that can complement their
existing products and create new markets Product
Not included No information about this deal.

Not listed
According to Zephyr: They increase their business in relation to
credit cards Product
Listed
According to Zephyr: Now they can store their gas better and
thereby explore the option to extract more at the time Product

525 /
125940

JJW HOTELS &


RESORTS

ANA GRAND HOTEL


WIEN

526 /
126148

FOUR SEASONS
HEALTH CARE LTD

OMEGA WORLDWIDE
INC.

527 /
126400

(Nursing home
operator)
BRITISH GAS
TRADING LTD
(Gas supplier)

528 /
126434

ICAP PLC

529 /
126480

LEGAL & GENERAL


GROUP PLC
(Life insurance)

530 /
126562
531 /
126798

DEUTSCHE BANK
(Banking)
SEMBCORP
UTILITIES TEESIDE
LTD
TELIASONERA AB

532 /
127203

533 /
127349

534 /

MORLEY
ABSOLUTE
GROWTH
INVESTMENT
COMPANY
SCOTTISH POWER

ELECTRICITY DIRECT
(UK) LTD
BROKERTEC GLOBAL
LLC'S TRADING
OPERATIONS
ALLIANCE &
LEICESTER LIFE
ASSURANCE
COMPANY LTD
IMPRESOL SPA
ENRON TEESSIDE
OPERATIONS LTD
ORANGE A/S

GLOBAL
OPPORTUNITIES
TRUST LTD'S CERTAIN
ASSETS
DAMHEAD CREEK

Not listed
http://www.mbiinternational.com/mbi-international-newspress/article.aspx?t=The+Grand+Hotel+Wien++A+Historic+Acquisition They buy the most luxurious hotel in
Europe Product
Not listed
http://www.fshc.co.uk/aboutus/newsDetail.asp?71-Four-SeasonsHealth-Care-launches-offer-for-Omega-Worldwide,-Inc-&Principal-Healthcare-Finance-Limited : They increase the number of
beds they manage within the UK market Product
Not listed subsidiary of Centrica
http://www.centrica.co.uk/index.asp?pageid=39&newsid=146&type
=17&year=archive : They expand the business unit regarding
electricity Overcapacity
Listed
According to Zephyr: They add electronic trading to their voice
trading service Product
Not included No information about the deal.

Not included Acquisition outside core business of the bank - The


bank buys a company which owns property in Italy.
Not included - It is a subsidiarys subsidiary.
http://www.teliasonera.com/investor_relations/
reports/annual_report/2004/in_english.pdf : They make the deal to
merge the two brands Telia and Orange and thereby gain some
synergies. They also become the third largest supplier in the Danish
market Overcapacity
Not included No available data.

Delisted in 2007

127460

PLC (Power supplier)

POWER STATION

535 /
127738
536 /
127971

TAVETA
INVESTMENTS LTD
NORSK HYDRO ASA
(Aluminium
Manufacture)

ARCADIA GROUP PLC

537 /
127974

WOLSELEY
CENTERS LTD
(Timber company)
SAS GROUP
(Airline operator)

BROOKS MANSON

BANK OF
SCOTLAND
(GOVERNOR & CO
OF)
RAMIRENT OYJ
(Machinery and
equipment rental)

HILTON GROUP PLC'S


10 HOTELS

541 /
129666

PETERHOUSE
GROUP PLC

FIRST ENGINEERING
HOLDINGS LTD

542 /
129734

HAMMERSON PLC
(Real Estate developer)

GRANTCHESTER
HOLDINGS PLC

543 /
131156

SEB TRYGG LIV


HOLDING AB
(Insurance)

CODAN LIV & PENSION

544 /
131786

DAIRY CREST
GROUP PLC

UNIQ'S ST IVEL
SPREADS BUSINESS

545 /

CO-OPERATIVE

ALLDAYS PLC'S

538 /
128131
539 /
128616
540 /
128804

TECHNAL SA

BRAATHENS ASA

BAUTAS
MASKINUTLEIE ASA

According to Zephyr: They want to increase their capacity in


Southern England Geographic
Not included - No financial data available
Listed
http://www.hydro.com/en/Pressroom/News/Archive/2001/October/16057/ : They get access to the
French, Italian and Spanish market Market
Listed
http://www.wolseley.co.uk/corp/news/archive/news20.html : They
get more sales locations in the UK market Geographic
Listed
http://www.sasgroup.net/SASGROUP_IR/CMSForeignContent/200
1eng.pdf : They increases their share of the Norwegian market
Market
Not included acquisition outside core business - The bank buys
hotels.
Listed
http://www.ramirent.com/english/www/att.php?type=2&id=24 :
They enter the Norwegian market by acquiring the market leader in
Norway Market
Not included - Not enough data and the webpage does not exist.
Listed
According to Zephyr: They make the deal to increase their retail
parks Product
Not listed
http://cws.huginonline.com/S/1208/PR/200406/950299_5.html :
They want to increase their presence in the Nordic Area
Overcapacity
Listed
http://www.dairycrest.co.uk/ourbusiness/ourhistory.asp : They get a
lot of new brands Product
Not listed

131841
546 /
131973
547 /
131989
548 /
132439
549 /
132597
550 /
132620

GROUP (CWS) LTD


(Investment fund)
GRAPECLOSE LTD
SMITHS GROUP PLC
(Defense and security)
AMER-YHTYM
OYJ
(Sporting equipment)
LW INVESTMENTS
LTD
BOOKHAM
TECHNOLOGY PLC
(Optical instrument
manufacture)

OPERATIONS AND
BUSINESSES
INMARSAT VENTURES
PLC
HEIMANN SYSTEMS
GMBH
PRECOR INC.
LITTLEWOODS PLC
NORTEL NETWORKS
CORPORATION'S
OPTICAL
TRANSMITTER AND
RECEIVER AND
OPTICAL AMPLIFIER
BUSINESSES
KIPA KITLE
PAZARLAMA TICARET
VE GIDA SANAYI AS
NIENBURGER GLAS
GMBH

551 /
133133

TESCO PLC
(Retail)

552 /
133391
553 /
133410

REXAM PLC
(Paper Packaging
manufacture)
MAN GROUP PLC
(Brokerage service)

554 /
133538

GREENE KING PLC


(Pub operator)

LAUREL PUB
COMPANY LTD'S 432
PUBS

555 /
133661

ASSET
INVESTMENT
CAPITAL LTD (Motor

LEASING GROUP PLC,


THE

GNI HOLDINGS LTD

According to Zephyr: They add the acquired retail stores to their


portfolio Product
Not included No separate accounts before and after the deal
Listed
http://www.smithsdetection.com/eng/history_heimann.php : They
added products to the portfolio Product
Listed
According to Zephyr: They add products to their existing portfolio
Product
Not included - Not enough financial data available.
Delisted
http://www.bookham.com/index.cfm?navId=12 :They expanded
their portfolio Product

Listed
According to Zephyr: They buy hypermarkets in Turkey as part of
their long term international growth Overcapacity
Listed
http://www.rexam.com/files/pdf/annual/2003/2002review.pdf : They
get a significant position in the German glas market - Overcapacity
Listed
http://www.mangroupplc.com/investor/AnnualReports/2003.pdf :
They get the critical mass in relation to equity derivatives and
become a market leader globally in respect to brokerage service Overcapacity
Listed
http://ww7.investorrelations.co.uk/greeneking/uploads/press/Pressre
leasefinal080704.pdf : They wanted to add more locations to their
real estate base - Geographic
Not listed
http://www.fleetnews.co.uk/fleetvan/story/?nID=27779 : The only
way to grow is through acquisitions because that is the only way the

556 /
134176
557 /
134203
558 /
135184
559 /
135533
560 /
136087
561 /
136659
562 /
137068
563 /
137109
564 /
137324
565 /
137442

566 /
137703
567 /

vehicle leasing)
POWERGEN PLC
(Renamed (2004):
E.ON) (Power and
electricity)
CHELSEA LTD
AMVESCAP PLC
Renamed: Invesco
(Investment vechicle)
TESCO PLC
(Retail)

TXU EUROPE'S
CERTAIN UK ASSETS
CHELSEA VILLAGE
PLC
WHITEHALL ASSET
MANAGEMENT INC.
T&S STORES PLC

market add new vehicles to the fleet Overcapacity


Delisted in 2003
http://www.prnewswire.co.uk/cgi/news/release?id=92807 : They
become market leader within the British electricity supply maket
Overcapacity
Not included No financial data available.
http://www.invesco.com/invest/reports/annrpt_03.pdf : They add the
asset management to their existing business - Overcapacity
Listed
http://www.tescocorporate.com/images/Report_03_0.pdf :They
increases their market share from 1% to 5% in relation to
convenience products Market
Not included resold in 2004.

AMBER
HOMELOANS LTD
CARPHONE
WAREHOUSE
GROUP PLC (Wireless
internet provider)
CENTRICA PLC

Residential Mortgage
Portfolio
OPAL
TELECOMMUNICATIO
NS PLC

MORLEY FUND
MANAGEMENT LTD
HSBC HOLDINGS
PLC
(Already found)
LIBERTY
INTERNATIONAL
PLC
(Investment company,
mainly in retail stores)
PEEL PORTS LTD

CHARTWELL LAND
PLC
HOUSEHOLD
INTERNATIONAL INC.

CLYDEPORT PLC

Not included - Not enough financial data.

NEWCO

SHEARINGS GROUP

Not included - No data available.

DYNEGY STORAGE
LTD

VICTORIA CENTRE
PARTNERSHIP, THE

Listed
http://www.cpwplc.com/phoenix.zhtml?c=123964&p=irolnewsArticle&ID=959686&highlight= : They gain fixed line services
which they can add to their wireless business - Product
Listed
According to Zephyr: They get better options to decrease
fluctuations in demand and support their storage costumers
Product
Not included - There are 5 acquirers.
Listed
http://www.hsbc.com/1/2/about-hsbc/group-history : They add 1300
branches in 45 states to their presence in the US - Market
Listed
According to Zephyr: They increases their market coverage within
the UK - Geographic

138054
568 /
138265

TRELLEBORG AB
(Provider of polymer
solutions)

LTD
MANULI DYNAFLEX

569 /
138270

GUS PLC
(Retail)

HOMEBASE LTD

570 /
138394

XSTRATA PLC
(Coal mining)

MIM HOLDINGS LTD

571 /
138459

H LUNDBECK A/S
(Pharmaceutical)

572 /
139390

COMPUTACENTER
PLC
(IT consultancy)

SYNAPTIC
PHARMACEUTICAL
CORPORATION
GE COMPUNET
(GERMANY) AG

573 /
139791
574 /
139861

DRUMWELL LTD

HILLGRANT LTD

ASSOCIATED
BRITISH FOODS PLC
(Food and ingredients
manufacture)

NOVARTIS AG'S FOOD


AND BEVERAGE
BUSINESS

575 /
140514
576 /
141054

Group of Institutional
Investors
WINCANTON PLC
(Logistic services)

TORNATOR OY

577 /
141878

TROMS FYLKES
DAMPSKIBSSELSKA
P ASA
THE DEPARTMENT

BERGEN
NORDHORDLAND
RUTELAG A/S
LIFE RESOURCES INC

578 /

P&O TRANS
EUROPEAN LTD

Listed http://www.highbeam.com/doc/1G1-14871394.html og
http://www.trelleborg.com/en/Investors/Reports/Annual-Reports/ :
The market can only grow through mergers and acquisitions
become marketleader through this deal Overcapacity
Not listed
http://www.homeretailgroup.com/home/about/history/ : They are in
retail and get economy of scale as well as additional costumer
segments Overcapacity
Listed
http://www.xstrata.com/publications/acquisition/mim Press release:
they make the deal to get into the Australian market and to get a
stronger position within thermal coal and zinc Overcapacity
Listed
http://www.lundbeck.com/aboutus/history/milestones/default.asp :
They open a new department in the US R&D
Listed
According to Zephyr: The industry is not mature and they want to
increase their service department as well as build up a leading
position in Europe regarding IT consultancy services - Geographic
Not included - Not enough available data.
Listed
http://www.abf.co.uk/investors/reports.asp#2002 (Report 2002: The
market only grow through mergers and acquisitions and they buy the
company to get additional brands to their portfolio and create a
better market position - Overcapacity
Not included Group of investors
Listed
http://www.wincanton.co.uk/default.asp?Section=SS&Cat2=SCS&
Cat3=TAD and according to Zephyr: They gain market share in the
UK and increases the transport services - Market
Not included - They merge with two other transport companies into
a group less than two years after the deal.
Not included No financial data available.

142232
579 /
142326

OF HEALTH
DNB HOLDING ASA
(Financial service)

580 /
142406

ADM MILLING LTD

581 /
142472

GE CAPITAL
SERVICES LTD

582 /
142625

EUROTUNNEL PLC

583 /
143841

ISS A/S
(Cleaning services)

584 /
144126

NEW STAR ASSET


MANAGEMENT
GROUP LTD
PHILLIPS EDISON
LTD
AKTIESELSKABET
DAMSKIBSSELSKAB
ET SVENDBORG
(Renamed :
MAERSK.B)
(Shipping)
TAYLOR NELSON
SOFRES PLC
(Market research
company)
SCOTTISH &
NEWCASTLE PLC

585 /
144336
586 /
144385

587 /
145100
588 /
147168

NORDLANDSBANKEN
ASA

ASSOCIATED BRITISH
FOODS PLC'S SIX
FLOUR MILLS
DAIMLERCHRYSLER
CAPITAL SERVICES
CERTAIN ASSETS
ABBEY NATIONAL
MARCH LEASING (1)
LTD
EUROGESTION

ABERDEEN ASSET
MANAGEMENT PLC'S
SIX UNIT TRUSTS
AEGIS REALTY INC.
DAMPSKIBSSELSKABE
T AF 1912 AS

Listed
https://www.dnbnor.com/portalfront/nor_com/nedlast/en/2006/1/dnb
_nor_2003_engelsk.pdf : Many of the departments within NLB will
be taken over by departments within DNB however NLB must focus
on supporting their local market Overcapacity
Not included - Headquartered in Illinois.
Not included - The leading office is located in the US.
Not included No information about the deal.
Not listed
http://www.issworld.com/SiteCollectionDocuments/archive/investor
/pdf/presentations/iss_arsrapport_2002_dk.pdf : They add a pest
control department and want to expand it to the other countries Convergence
Not included - Not enough financial data.
Not included - Not enough data available.

Listed
http://shareholders.maersk.com/NR/rdonlyres/BFD6DCBD-E96B404F-8FB2-66EBE5F1E3FC/0/Annual_SVB_2002_da.pdf : They
merge because the market they have been operated in has changed
and now they decide it will be better to merge and create one
company - Overcapacity
NFO WORLDGROUP
Listed
INC.
http://www.tnsglobal.com/_assets/files/TNS_2003_Annual_Report.
pdf : They increases their presence in the US market significantly
Market
HP BULMER HOLDINGS Listed
http://www.scottishPLC

(Beer producer)
589 /
147328

AQUAVIT PLC
(Water utilities.)

ATLANTIC WATER LTD

590 /
147961

CADBURY
SCHWEPPES PLC
(Soft drink producer)

WARNER LAMBERT
(ADAMS) DE MEXICO

591 /
148589
592 /
148724
593 /
148962
594 /
149152
595 /
150289
596 /
150860

LEHMAN
BROTHERS
SCARLETT RETAIL
GROUP LTD
PILLAR PROPERTY
PLC
Tech data ltd

ODEON CINEMA LTD

597 /
152125

MOYLE HOLDINGS
LTD

598 /
152678
599 /
152911
600 /
152946
601 /
153734

OXFORD
ACQUISITIONS LTD
CELLTECH GROUP
PLC
BLUE INVESTMENT
FUND LP
LNM GROUP, THE
steel producer

COATS HOLDING
PLC
Reuters Group PLC

ALLDERS PLC
NASSICA RETAIL AND
LEISURE PARK
Azlan group PLC
COATS PLC
Multex.com inc.

MOYLE
INTERCONNECTOR
LTD
SELFRIDGES PLC
OXFORD
GLYCOSCIENCES PLC
J SAINSBURY
DEVELOPMENTS LTD
HUTA STALI
CZESTOCHOWA SP

newcastle.com/snplc/ir/fininfo/reps/2003/annual2003/annual2003in
d/chiefs2.pdf : They add a new brand to their beer and non-beer
portfolio - Product
Not listed
http://www.nwg.co.uk/nwgar04.pdf : They buy to add to their
business Overcapacity
Listed
http://www.cadburyschweppes.com/EN/MediaCentre/PressReleases
/310303_adams.htm : They make the deal to gain new brands and to
become market leader in relation to confectionary business Geographic
Not included - More the one acquirer.
Not included - Not enough data available and they sell th Allders
departments again two years after this deal.
Not included - They are acquired by British Land in 2005 and the
deal takes place in 2003.
Not included - The company is American and Zephyr does not have
separate financial data with respect to the British department.
Not included - They buy a subsidiary.
Listed
http://www.about.reuters.com/home/mediarelations/pressreleases/in
dex.aspx?releaseid=1094 : They both work with making information
available to the public and by merging they create new product areas
- Convergence
Not included - They buy a subsidiary.
Not included - No data available.
Not included - They are acquired by UBC in 2004 which is one year
after this merger.
Not included - No data available.
Not included - Merged to form Mittal Steel in 2004, not enough
separate data to include

602 /
153818
603 /
154059
604 /
154492

DORCHESTER
GROUP LTD hotel
operator
IRON MOUNTAIN
EUROPE LTD
GETINGE AB
medical equipment
manufacturer

ZOO
HOTEL PRINCIPE DI
SAVOIA

Not included - Not enough financial data

HAYS IMS

Not included 18 month accounts around acquisition

SIEMENS MEDICAL
SOLUTIONS'S LIFE
SUPPORT SYSTEMS
BUSINESS UNIT

VESTAS WIND
SYSTEMS A/S
(wind systems
producer)
ROYAL BANK OF
SCOTLAND GROUP
PLC, THE (RBS)
financial services

NEG MICON A/S

607 /
157967

BRIT INSURANCE
HOLDINGS PLC
insurance company

PRI GROUP PLC

608 /
158234

EXPRESS DAIRIES
PLC dairy producer
and wholesaler

ARLA FOODS PLC

609 /
158791
610 /
159013

ARMSTRONG
BROOKS PLC
CALEDONIA OIL &
GAS LTD

VENTURIA PLC

Listed
http://www.getingegroup.com/getinge.asp?ID=162&latest=1 Integration of a world leading business complementing existing
business area. Meet requirements of acquisitions, strong product
range, skills, strong market position plus a strong presence in
Sweden. (becomes marketleader)- overcapacity
Listed
http://www.vestas.com/da/investor/regnskaber/regnskaber-2003 :
Becomes marketleader in the industry and enters a new country Overcapacity
Listed
http://www.rbs.com/media03.asp?id=MEDIA_CENTRE/PRESS_R
ELEASES/2003/JUNE/11_CHURCHILL : Makes RBS the largest
insurance provider, gives RBS scope, strong brands and improved
offerings overcapacity
Listed
http://wwww.britinsurance.com/NewsArticle/_/2671/offer_for_pri_
group_to_be_made_by_brit___april_19__2003.html : Becomes a
UK insurance division with critical mass. The two companies
complement well with respect to products, skills etc. and together
they will provide better service, increased reach and so forth overcapacity
Delisted in 2007 ( ARLA foods UK)
Zephyr: through the merger they becomes europes largest dairy cooperative. They have complementary operations, better products and
brands, efficiencies and improved management af financial
ressources overcapacity
Not included Not listed and no homepage

CONSORT RESOURCES
LTD

Not included - No information about this deal and not enough


accounts available.

605 /
155307
606 /
156106

CHURCHILL
INSURANCE GROUP
PLC

611 /
159425
612 /
159484

BT GROUP PLC

613 /
160406

WOLSELEY PLC
heating equipment
wholesaler retail

PINAULT BOIS ET
MATERIAUX SA

614 /
160473

WAITROSE LTD
supermarket operator

WM MORRISON
SUPERMARKETS PLC'S
15 STORES

615 /
160694

GLADEDALE
HOLDINGS PLC
(property developer)

BETT PLC

616 /
160700
617 /
161500
618 /
161615

GIANT BIDCO

Big Food Group plc, The

MARCH UK LTD

REALITY GROUP LTD

SCOTTISH &
NEWCASTLE PLC
beer producer

PARFIL - SOCIEDADE
GESTORA DE
PARTICIPAES
SOCIAIS SA

619 /
162336

HANSON PLC
manufacturer

BETTER MATERIALS
CORPORATION

DNB HOLDING ASA


(renamed DNB NOR)
financial services

INFONET SERVICES
CORPORATION
GJENSIDIGE NOR ASA

Not included - More than one acquirer


Listed
https://www.dnbnor.com/portalfront/nor_com/nedlast/en/2006/1/dnb
_nor_2003_engelsk.pdf - the merger will yield significant synergies,
lower exposure, and a complete integration will take place overcapacity
Listed
http://www.wolseley.com/uploads/annualreports/WOS_AR_2003.p
df and Zephyr: Expand operations in continental europe. Will
complement existing french business, and create synergies and a
platform for further organic growth. world market leader. Already
market leader in Franc, but improves this position through the
acquisition - overcapacity
Not listed
Zephyr: Mature industry, improve reach, becomes able to better
compete in the market. (acquire an operator within the same mature
industry and same country. They improve their marketshare and
coverage overcapacity
Not listed.
http://www.realbusiness.co.uk/hot100/Hot100rankings.html and
Zephyr: Important step to increase operational activities throughout
UK. Growing through acquisition. Increasing scope to provide for
future organic growth aiming to become one of the largest in UK
market
Not included - No information about the acquirer.
A shelf company not included (not enough information about the
deal.
Listed
http://www.scottish-newcastle.com/snplc/media/news/2003/200305-13/ - Strategy work alongside local partners, invest in
companies with strong market positions, strong brands and effective
distribution systems. Geographic
Not listed
http://www.hansonplc.com/index.asp?PageID=291&Year=2003&N
ewsID=254 : In line with bolt-on acquisition strategy.

620 /
162384
621 /
163593

CEESAIL LTD

CHUBB PLC

FINNING UK LTD
heavy equipment
distributor

LEX HARVEY LTD

622 /
163659
623 /
165309

CHIRON UK-1 LTD

Powderjet Pharmaceuticals
plc
NORDISK RENTING AB

624 /
165517

625 /
165525

ROYAL BANK OF
SCOTLAND GROUP
PLC, THE Financial
services
OM AB stock
exchange operator
(renamed OMX)

HEX OYJ

overcapacity
Not included - Not enough information about acquirer, not enough
financial data.
Not listed
http://www.highbeam.com/doc/1P2-3439663.html ,
http://www.belfastmh.co.uk/news.html and Zephyr: Complement
existing business, support each other and yield multi benefits to
both. Market leader and natural growth of 25 %. significantly
strengthen the position as one of the leading in the industry market
Not included, acquisition vehicle, wholly owned by US based
Chiron.
Listed
http://www.investors.rbs.com/investor_relations/announcements/Rel
easeDetail.cfm?ReleaseID=155371 - acquisition of market leading
property leasing company - convergence
Not listed
http://nasdaqomx.com/digitalAssets/0/464_Annual_svensk_040315.
pdf - create an integrated nordic exchange, creating significant
synergier to customers and stakeholders. The customers gain
harmonized markets, lower costs, a wider product offering,
facilitating increased trading overcapacity
Not included, acquisition vehicle created with the purpose of
undertaking this deal.

CITY & GENERAL


SECURITIES LTD
real estate developer
ROYAL BANK OF
SCOTLAND GROUP
PLC, THE financial
services

COMPCO HOLDINGS
PLC
SANTANDER DIREKT
BANK AG'S CREDIT
CARD AND PERSONAL
LOANS OPERATIONS

Listed
http://www.investors.rbs.com/investor_relations/announcements/Rel
easeDetail.cfm?ReleaseID=154531 - RBS has one of Europes
largest credit card platforms and is ideally suited to grow this
business. Complement the already significant loan and card business
in Europe - overcapacity

627 /
168293

ENTERPRISE INNS
PLC pub operator

UNIQUE PUB
COMPANY PLC

628 /

UNITED UTILITIES

NATIONAL GRID

Listed
http://www.manchestereveningnews.co.uk/news/business/s/138/138
707_pubs_unique_profits.html - through acquisition, ENI becomes
UKs largest pub operator again - geographic
Not included - Deal not completed till 2005

626 /
166833

169250
629 /
169532

PLC
CO-OPERATIVE
BANK PLC, THE
banking services

630 /
170514

REXAM PLC (REX)


paper packaging
manufacturer

631 /
170707

BOLIDEN AB (BOL)
mining services

632 /
170846

PENINSULAR &
ORIENTAL STEAM
NAVIGATION
COMPANY PLC
shipping services and
ports operation
DELTA PEARL LTD

633 /
171416
634 /
171885
635 /
173682
636 /
176719

UNICREDITO
ITALIANO SPA
CAPIO AB
healthcare services
YIT-YHTYM OYJ
(YTY1V)
construction services
Renamed: YIT Oyj

TRANSCO PLC'S
NORTHERN ROCK
PLC'S CREDIT CARD
BUSINESS

Not listed
http://www.cfs.co.uk/images/pdf/bank_financial_report_2003.pdf Acquire credit card business, fits well inline with existing business
and help secure future growth product
RISDON PHARMA SA
Listed
http://www.rexam.com/index.asp?pageid=30 - changes focus
towards valua added products, and in this respect they acquire RH
product
http://www.rexam.com/index.asp?pageid=518&year=2003&categor
y=&newsid=74 - make rexam one of europes top pharma plastic
packaging companies complements well in both technology and
customer base, opportunities of significant synergies. - product
OUTOKUMPU'S MINING Zephyr: Boliden will become one of words largest smelting and
AND SMELTING
mining companies
OPERATIONS WITHIN
http://vp031.alertir.com/files/press/boliden/Boliden_BolidenOutoku
ZINC AND COPPER
mpu20031204-2_en.pdf - The acquisition positions Boliden well for
further consolidation within the mining and smelting business. Will
yield significant synergies and allow them to operate more
efficiently as large company overcapacity
MUNDRA
Delisted in june 2006 (acquired by DP world)
INTERNATIONAL
Not enough financial data not included
CONTAINER
TERMINAL LTD

SGC (HK GROUP) LTD

Acquisition vehicle, not included.

ING SVILUPPO

Not included, two companies acquiring

UK HEALTHCARE
LIMITED PARTNERSHIP
INC.
ABB LTD'S BUILDING
SYSTEMS BUSINESS IN
THE NORDIC
COUNTRIES, THE

Not included, not enough financial data, only available account until
2004
http://yittilaukset.yit.fi/projektit/envk03/YIT_vk_03_eng.pdf - a new
business segment through this acquisition convergence

BALTICS AND RUSSIA


MENTMORE PLC'S
SERVICED BUSINESS
SPACE DIVISION
PROJECT TELECOM
PLC

637 /
177648

ZIPMODES LTD

638 /
178693

VODAFONE GROUP
PLC (VOD) mobile
telecom sevices

639 /
179800

TRELLEBORG AB

POLYMER SEALING
SOLUTIONS LTD

640 /
179865

UNITED BUSINESS
MEDIA PLC (UBM)
publisher, radio station
operator etc.
ISOFT GROUP PLC
healthcare software
developer

APROVIA UK LTD

641 /
180111

TOREX PLC

642 /
180215

HSBC HOLDINGS
LOSANGO
PLC (HSBA) banking PROMOTORA DE
services
VENDAS LTDA

643 /
181176

HSBC HOLDINGS
BANK OF BERMUDA
PLC (HSBA) banking LTD
services

No information about this company in liquidation. Deal not


included
Accounts already collected
http://www.theregister.co.uk/2003/08/05/vodafone_buys_project_tel
ecom/ - PT is too small to compete in hyper competitive telecom
market, thus waiting to be acquired by large player Vodafone
gains cost efficiencies, better service for customers and so forth overcapacity
Accounts already collected
http://feed.ne.cision.com/wpyfs/00/00/00/00/00/05/CE/95/wkr0008.
pdf - access to new product area sealing solutions a high
penetration threshold segment product
http://www.brandrepublic.com/News/185881/United-BusinessMedia-buys-Building-title-79m-deal/ - acquire new titles well in line
with existing magazines geographic
Delisted in oktober 2007
http://www.isoftplc.com/corporate/media_files/annual_report_2004.
pdf - Merger expecting synergies, increased capacity, improved
cost structure creating a global leader. Gained significant presence
in Germany and Netherlands. market
http://www.datamonitor.com/industries/news/article/?pid=B649121
A-7A45-4B91-9551-D319968D1B2B&type=NewsWire - acquiring
a larger rival, merge to be able to better compete in the markets.
market
Accounts already collected
http://www.hsbc.com/1/2/newsroom/news/news-archive-2003/hsbcto-acquire-lloyds-tsbs-brazilian-assets- -Complement existing
business, extend customer base. In line with strategy to develop
presence in growth countries. market
Accounts already collected
http://www.hsbc.com/1/2/newsroom/news/news-archive-2003/hsbcagrees-to-acquire-bank-of-bermuda - Strong positin in local market
in Bermuda, scale + geographic scope, synergies. The bank of

644 /
181230

LLOYDS TSB
GROUP PLC (LLOY)
financial services

GOLDFISH BANK LTD'S


CREDIT CARD AND
PERSONAL LOAN
BUSINESSES

645 /
181572

XSTRATA PLC
(XTA)mining and
refining services

LAS BAMBAS COPPER


PROJECT

646 /
181603

3PC INVESTMENT
TRUST PLC (AIT)
venture capital trust

AIM TRUST PLC, THE

647 /
185677

PUNCH TAVERNS
RESERVE
COMPANY LTD
MOUCHEL PLC
(MCHL) engineering
consultancy services.

PUBMISTRESS LTD

DH DENMARK
HOLDING APS
HYDRO
ALUMINIUM AS
(aluminium product

RADIOMETER A/S

648 /
185773

649 /
186536
650 /
186753

PARKMAN GROUP PLC

ALPART ALUMINA
REFINERY

bermuda will keep its own name and independence. -geographic


http://www.investorrelations.lloydstsb.com/media/pdf_irmc/ir/2003/
2003_LTSB_Group_R&A.pdf -Value enhancing in market
acquisition
http://www.investorrelations.lloydstsb.com/media/pdf_irmc/ir/2003/
2003Aug1_Goldfish_Acquisition.pdf - expand credit card +
personal lending businesses grow core businesses. Improve
efficiencies, grow revenues and offer more choice to the customers.
- product
Accounts already collected
http://www.xstrata.com/assets/pdf/xta-ar2004_en.pdf - in line with
ambition to grow copper business.
http://www.xstrata.com/media/news/2004/08/31/0701CET/ - and
option to develop a copper mine product
Merger renamed Active Capital Trust
http://www.citywire.co.uk/adviser/-/news/collectiveinvestments/content.aspx?ID=248780&Page=2 - merger of two
smaller companies- reason for the merger is that none of the two
companies are large enough to compete in the market alone
overcapacity
Not included not enough separate financial accounts a
subsidiary.
Renamed Mouchel Parkman after the merger.
Zephyr Complementary businesses, greater financial ressources,
larger role in the market winning and serving a broader range of
sectors.
http://www.citywire.co.uk/personal/-/news/markets-companies-andfunds/content.aspx?ID=250769&Page=1 - greater scale, scale up
activities and be able to participate in larger deals, reduce costs.
Lack of skilled labor- due to the merger the combined business is
able to compete in the market-overcapacity
Not included, wholly owned subsidiary of US based company
(Danaher corporation)
Not listed
Aluminium industry is a mature industry. HA is marketleader in the
segment of aluminiu products, acquisition of this refinery

651 /
187490

manufacturer)
TAYLOR
WOODROW PLC
(TW) - housebuilder

WILSON CONNOLLY
HOLDINGS PLC

strengthens position - overcapacity


Zephyr: Improved geographic coverage, god fit with existing
business, position TW as one of leading housebuilders
http://www.independent.co.uk/news/business/news/taylor-woodrowto-buy-wilson-connolly-578639.html - largest housing builder in
UK, shortage in industry, able to better meet this, increased scale
overcapacity
http://www.propertyweek.com/story.asp?storyCode=3029868 - a
wave of consolidation in the house building industry overcapacity

652 /
188685

ROYAL BANK OF
SCOTLAND GROUP
PLC, THE (RBS)
financial services

FIRST ACTIVE PLC

Accounts already collected

653 /
189833

BOOTS
HEALTHCARE
INTERNATIONAL
LTD pharmaceuticals
products wholesaler

PROCTER & GAMBLE


COMPANY'S
CLEARASIL ACNE
TREATMENT BRAND

http://www.allianceboots.com/main.asp?nid=123&pid=1607 buying the brand Clearasil, no 1 in acne market, market leading in


several countries. Possibilities of product extension - product

654 /
190005

WHITBREAD PLC
(WTB) hotel operator

PREMIER LODGE LTD

http://miranda.hemscott.com/ir/wtb/pdf/ar_2004.pdf - increased
scale in budget hotels sector, combining with existing business to
gain cost and revenue synergies geographic

655 /
191166

TELE2 AB (TEL2.B)
telecom and internet
services provider

UTA TELEKOM AG

Accounts already collected.

http://www.investors.rbs.com/investor_relations/announcements/Rel
easeDetail.cfm?ReleaseID=154431 - an important player in the Irish
market, retain own name geographic

Zephyr: in line with strategy first build customer base and


profitable business then possibly integrate backwards. UTA yields
boh infrastructure and customers market
http://www.tele2.com/pages/Press.aspx?id=90&source=1021245 significantly cut costs, create a stronger competitor in the austrian
market - market

656 /
191548

BOOKHAM
TECHNOLOGY PLC
(BHI.L)

NEW FOCUS INC.

http://media.corporateir.net/media_files/irol/12/120869/reports/Bookham_AR_final_397.p
df - de fr nye omrder indenfor militr og testning med i deres
porteflje - R&D

657 /
193137

NEWCO

UNICYCLE LP

Acquisition vehicle a joint venture. Deal not included

658 /
193245

POWERGEN LTD
electricity generator
and distributor

AQUILA STERLING LTD Renamed E.ON UK in 2004 mangler regnskab 2007

659 /
194680

SCOTTISH &
MEDWAY POWER LTD
SOUTHERN ENERGY
PLC (SSE) gas and
electricity utility
services

Zephyr: Considerably strenghten position in core UK market


overcapacity
Accounts already collected.
Zephyr: Flexible and efficient power station, yielding significant
operating and financial synergies.
http://www.citywire.co.uk/adviser/-/news/market-andshares/content.aspx?ID=261523 . second largest distributor in UK
Overcapacity

660 /
195191

DAWNAY SHORE
HOTELS PLC hotel
operator

PARAMOUNT HOTELS
GROUP LTD

Deal not included, not enough financial data available

661 /
196530

ARBOR PLC holiday


village operator

CENTER PARCS UK
HOLDINGS LTD

No information about this deal.

662 /
196770

PUNCH TAVERNS
(ITB) LTD

INNSPIRED GROUP LTD No information about the deal, no information about acquirer. Not
enough financial data, deal not included.

663 /
197732

BASS PLC hotel


operator

BRISTOL HOTELS &


RESORTS INC.

Not enough financial data. Deal not included

Accounts already collected


http://www.hotelinteractive.com/index.asp?page_id=5000&article_i
d=390 - consolidation in the global hotel industry , combination of
strong brands and management, yield synergies geographic
http://www.secinfo.com/dsVQx.58g.d.htm - rapid consolidation in
the sector, significant synergies. Bass to become important player.
geographic

664 /
200275

BARCLAYS BANK
PLC banking services

GERRARD
MANAGEMENT
SERVICES LTD

http://www.investor.barclays.co.uk/results/2003results/annual_repor
t/website/downloads/2003_annual_report.pdf - becomes UK largest
in this segment overcapacity

665 /
201075

RANDGOLD
RESOURCES LTD
(RRS) mining

ASHANTI GOLDFIELDS
CO., LTD

Zephyr: want to create independent pan African gold business a


strategy based on growth overcapacity

services
666 /
201164

NURTON HOLDINGS
LTD

GUITON GROUP LTD

n.a. acquisition vehicle, deal not included.

667 /
201514

CARDINAL HEALTH
UK 418 LTD

INTERCARE GROUP
PLC, THE

Acquisition vehicle, formed with the purpose of completing this deal


subsisiary of US based company. Not included

668 /
201735

WM-DATA AB
(LOG.L)

NOVO GROUP OYJ

Deal not included acquired in 2006

669 /
202407

PREMIER FOODS
PLC (PFD) food
producer

UNILEVER GROUP'S
AMBROSIA BUSINESS

http://www.secinfo.com/d139r2.1Xu.htm#32z8 - strenghten brand


offering and product portfolio, becoming marketleader in the dessert
products. product

670 /
202535

FINALREALM LTD

NABISCO GROUP
HOLDINGS
CORPORATION'S
EUROPEAN MID EAST
AND AFRICAN UNIT

Acquisition vehicle, not enough financial data available not


included

671 /
205927

WILSON BOWDEN
PLC property
developer

WARD HOMES GROUP


LTD

http://www.wilsonbowden.co.uk/financials_finals2003/wb_annual_r
eport-2003.pdf - ward will keep its name.
Zephyr: Strenghten geographic coverage, bring critical mass geographic

672 /
206029

SCOTTISH &
ATLANTIC ELECTRIC & Accounts already collected
SOUTHERN ENERGY GAS LTD
http://www.ofgem.gov.uk/About%20us/enforcement/mergers/oft/Do
PLC supplier of gas
cuments1/mergersandaquisitions%2016.pdf - overlap in markets and
and electricity
products, improving SSE marketshare (4th largest supplier of gas
and electricity)- overcapacity

673 /
206252

TAYLOR & FRANCIS


GROUP PLC

MARCEL DEKKER
INC.'S BUSINESS AND
PUBLISHING ASSETS

Merged with informa a few month after this acquisition not


included

674 /
206428

ALIFIN OY

HACKMAN OYJ ABP

No information about this deal, no separate financial data on the


acquirer

675 /
206909

BG GROUP PLC (BG)


gas producer and

EL PASO OIL & GAS


CANADA INC.

http://www.bg-group.com/media/archive_2004/021604-sx.htm extend existing operations - improves market share in mature

distributor
676 /
207337

AMVESCAP PLC
(AVZ) financial
services, private wealth
management

industry overcapacity
STEIN ROE
INVESTMENT
COUNSEL LLC

Accounts already collected


http://www.invesco.com/invest/reports/annrep_04.pdf - expand area
of PWM to full US coverage.
http://www.invesco.com/media/press_releases/2004_03_01.pdf position to better serve customer needs in the future market

Renamed Invesco in
may 2007
677 /
207415

EAST SURREY
HOLDINGS PLC

PHOENIX NATURAL
GAS LTD

No information about this deal. ESH was acquired in 2005. Only


one year accounts are available.

678 /
207854

RASMUSSENGRUPP
EN AS shipping
services

AVANTOR ASA

Mangler regnskab 2007

679 /
209000

REIT ASSET
MANAGEMENT LTD
asset management
services

ST KATHARINE DOCKS

http://www.reit.co.uk/transactions.html - Until 2003 they have only


invested in properties and now they invest in a luxury marina
Convergence

680 /
209587

PETRO-CANADA UK
LTD

INTREPID ENERGY
NORTH SEA LTD

Petro-canada UK is a subsidiary of petro-canada Canadian based.


No separate accounts available deal not included.

681 /
210500

GE REAL ESTATE
UK

BENCHMARK GROUP
PLC

Deal not included subsidiary of GE

682 /
211101

DANISCO A/S (DCO)


food ingredient and
sugar manufacturer

RHODIA SA'S FOOD


ADDITIVES DIVISION

http://www.danisco.com/cms/connect/corporate/media%20relations/
news/archive/2004/june/investor_144_en.htm - significantly
enhance product platform, notably in specialist products product

683 /
211303

HOGG ROBINSON
PLC (HRG.L)
business travel agency

KUONI REISEN
HOLDING AG'S BTI
CENTRAL EUROPE
BUSINESS TRAVEL
DIVISION

http://business.timesonline.co.uk/tol/business/industry_sectors/supp
ort_services/article1037349.ece - significantly increases the
operations in Europe - market

Renamed Hogg
Robinson group in
2006

http://www.rasmussen.no/hoved.aspx og
http://www.rasmussen.no/eiendom.aspx - gennem dette kb fr RG
udbygget en af sine kommende 3 forretningsomrder,
ejendomsinvestering convergence

http://www.hoggrobinson.com/portals/40/Documents/AboutUs/Com
pany_Heritage.pdf - expand business into new countries market

684 /
211463

ITV PLC (ITV)


telecommunications

GRANADA PLC

http://www.itvplc.com/itv/merger/reasons/ - significant benefits to


all, lower costs, larger product offerings etc, creating one of europe
largest broadcast producer- geographic

Created from merger


between Granada and
Carlton.
685 /
211973

SWK (UK) PLC

BLICK PLC

No information about this deal, no accounts available deal not


included

686 /
212152

NORTHGATE
INFORMATION
SOLUTIONS PLC
computer software
developer

REBUS HR GROUP

Listed, but cannot find ticker

687 /
212516

ANGLO AMERICAN
PLC (AAL) manufacturing

ROMAN BAUERNFEIND Accounts already collected


HOLDING AG
http://www.angloamerican.co.uk/article/?afw_source_key=4C695E1
D-6E04-4C83-A121E01052DB5595&xsl_menu_parent=/newsandmedia/pressreleases/ar
chive2003/ : Transaction build existing position, complementary fit
broader coverage critical mass grow through acquisitions
overcapacity

688 /
213248

RESOLUTION LIFE
GROUP LTD life
insurance services

ROYAL &
SUNALLIANCE
INSURANCE GROUP
PLC'S LIFE INSURANCE
BUSINESS

Merged with other company in 2005 renamed resolution

689 /
213877

WM MORRISON
SUPERMARKETS
PLC (MRW)
supermarket operator

SAFEWAY PLC

Zephyr: Expand to entire UK, expand product ranges and scope


overcapacity

690 /
214746

SAFESTORE
ACQUISITION LTD
accounts for safestore
group

MENTMORE PLC

http://www.citywire.co.uk/adviser/-/news/market-andshares/content.aspx?ID=257051 - consolidation, becoming leading


European selstorage specialist, growing through acquisitions
overcapacity

Zephyr: acqusition of business within one of core areas of expertise,


double size and become leading in software applications in target
market. Possibilities of growth, complement existing business in HR
product

No separate accounts, deal not included

691 /
215170

APES HOLDING AB

PANDOX AB

Not included APES holding a holding company owned by two


larger companies no separate accounts on APES

692 /
215251

CENTAUR
HOLDINGS PLC

CENTAUR
COMMUNICATIONS
LTD

Not included, acquisition of subsisiary

693 /
215348

KAUPING BANKI
HF (KAUP) financial
services

FI-HOLDING A/S

http://www.kaupthing.is/?PageID=3601 - expanding businesses


creating a griant in nordic region FIH erhversbank (keep name)
geographic

694 /
215952

SVENSKA
CELLULOSA AB
(SCA.B)

CARTER HOLT
HARVEY LTD'S TISSUE
BUSINESS

Accounts already collected


Zephyr: Strong synergies and value created from acquisition by
building on the presence in the AUS market overcapacity
http://www.sca.com/templates/Page.aspx?id=279&epslanguage=EN
#2004 -Becomes marketleader within tissue in AUS
http://www.sca.com/documents/en/Annual_Reports/Annual_Report
_2004_en.pdf - marketleader in AUS and NZ overcapacity

695 /
216316

MONDI PACKAGING
(UK) LTD corrugate
producer

BAUERNFEIND'S
CORRUGATED PAPER
AND PACKAGING
BUSINESSES

http://findarticles.com/p/articles/mi_m3116/is_2_89/ai_113778924 becomes the 4th largest corrugate producer in Europe

696 /
218611

PENDRAGON PLC
(PDG) car dealer

CD BRAMALL PLC

Accounts already collected

697 /
221687

MBNA EUROPE
BANK LTD

VENDCROWN LTD

http://www.prnewswire.co.uk/cgi/news/release?id=115922 - They
buy an insurance broking service because they fits to their strategy
about offerings loans and other financial services to professional and
wealthy clients Overcapacity

698 /
222165

JOINT OPCO

SECURICOR PLC

Zephyr: Acquisition vehicle created to merge with Securicor and


then being acquired by group 4 securicor not included

699 /

BABCOCK

PETERHOUSE GROUP

http://www.babcock.co.uk/index.cfm/recordid.2/newsitem.142 -

http://www.cee-foodindustry.com/news/ng.asp?id=48494-mondi-sworld - build on existing businesses, complementary fit, creating


broader coverage; strategy: acquisition led growth to gain critical
mass overcapacity
Zephyr: consolidation in the UK car dealer industry confirming
position as no. 1 overcapacity

222553

INTERNATIONAL
GROUP PLC (BAB)
engineering services

PLC

Creating a larger and stronger group, better placed to secure the


increasingly large and complex project in UK industry
http://www.babcock.co.uk/downloads/Babcock_R&A_complete.pdf
- same services, different customerbase, better serve all customers
http://www.independent.co.uk/news/business/news/babcock-growswith-pound105m-peterhouse-buy-567294.html - expertise away
from only military customers product

700 /
224121

DANSKE BANK A/S


banking services

NATIONAL IRISH BANK Not included deal completed in 2005


LTD

701 /
224685

COLLINS STEWART
TULLETT PLC
(CLST)
(Financial advisory
service)
ATLAS COPCO AB
(ATCO.A)
(Mining equipment
manufacture)
TATE & LYLE PLC
(TATE)
(Sugar trader)

PREBON GROUP LTD

According to Zephyr - they want to gain economics of scale and cost


savings Overcapacity

INGERSOLL-RAND
DRILLING SOLUTIONS

According to Zephyr They get at good strategic fit because they


are experts in underground drilling and they get surface drilling
Product

MCNEIL
NUTRITIONALS'
ALABAMA-BASED
SUCRALOSE
MANUFACTURING
PLANT
CHIPS OYJ ABP

http://www.tateandlyle.com/TateAndLyle/our_business/history/histo
ry_timeline.htm - they become the only producer of the brand
SPLENDA Geographic

JAMES FINLAY LTD

http://www.swire.com/eng/activities/uk.htm#JamesFinlayLtd they
continues under their own name and continues selling and producing
tea - Geographic

MAURITANIA
HOLDINGS BV

http://ir.bg-group.com/bgir/report/ar2004/ar2004.pdf - they buy to


expand their presence in the world - Overcapacity

TAYLOR & FRANCIS


GROUP PLC

http://www.informa.com/corporate/about/history.htm - they want to


become global and T&F continues as a subsidiary - Geographic

702 /
227241
703 /
227705

704 /
227958
705 /
228107
706 /
228610
707 /
229807

ORKLA ASA
JOHN SWIRE &
SONS LTD
(Private owned)
(Beverage service)
BG GROUP PLC
(BG)
(Gas producer)
INFORMA GROUP
PLC

Completed in 2005.

708 /
230006
709 /
230806

710 /
232034

711 /
232456
712 /
232846

713 /
234286

714 /
236126
715 /
236558

(INF)
(Business information
publisher)
DS SMITH PLC
(SMDS)
(Paper and Corrugated
Packaging)
ASSOCIATED
BRITISH FOODS PLC
(ABF)
(Food and ingredients
manufacture)
WOLVERHAMPTON
& DUDLEY
BREWERIES PLC
(MARS)
(Pub house operator )
SF HF
(A)
(Seafood provider)
SMITH & NEPHEW
PLC
(Already found)
(Medical device
manufacture)
NILFISK-ADVANCE
A/S
(Private owned)
(Cleaning equipment
manufacture)
TULLOW OIL PLC
(Already found)
(Oil and Gas
exploration)
BAUGUR GROUP HF
(Private owned)

LINPAC CONTAINERS
LTD
TONE BROTHERS INC.

WIZARD INNS LTD

http://www.dssmith.uk.com/downloads/Financial%20Reports/Annu
alReportFull2004%20lo-res.pdf they get at better position in the
UK market, but the expected synergies seems to be missing
Market
http://www.abf.co.uk/investors/reports/2004_report/downloads/abf_
ar_2004.pdf - they get a new brand and became number 2 in the US
market - Overcapacity
http://www.marstons.co.uk/docs/wizard_press_statement_june_04.p
df - they get at bigger real estate base in the UK - Geographic

FINANCIRE DE KIEL
SAS

http://www.alfesca.com/sifgroup/upload/files/pdf/sif_annual_report
_04.pdf - they get new markets as well as new brands and Labeyrie
(Financire de Kiel) continues as a separate brand under the
umbrella - Geographic
MIDLAND MEDICAL
http://global.smithnephew.com/cps/rde/xbcr/smithnephewls_master/2004_Annual_Re
TECHNOLOGIES LTD
port_Accounts_and_Form_20-F.pdf - they get at new product which
supports the other however they already sell it in Europe but it is not
approved in the US jet - R&D
ALTO INTERNATIONAL http://www.alto-online.com/Content/About%20Nilfisk-ALTO.aspx
A/S
they get a division called Nilfisk-Alto - Product

ENERGY AFRICA LTD

http://www.tullowoil.com/tlw/aboutus/history/20002004/ they get


at better position in the African market and become a more balanced
oil and gas company - Overcapacity

KAREN MILLEN LTD

http://www.baugurgroup.com/?PageID=394 they invest in retail


business and they select those having the best forecasts - Product

716 /
240269
717 /
240854
718 /
241075
719 /
242264
720 /
242742
721 /
242878
722 /
245372
723 /
245781
724 /
245974

725 /
246320
726 /
246688
727 /
247782

(Investment company)
HALLCO 996 LTD
ASTRON HOLDINGS
LTD
SONGBIRD
ACQUISITIONS LTD
VPC AB
(Private owned)
(Clearing house)
CENTRICA PLC
(Already found)
(Gas and oil
exploration)
FAIR ISAAC UK LTD

MORRIS GROUP LTD

Not enough data.

EDOTECH LTD

Not enough data.

CANARY WHARF
GROUP PLC
SUOMEN
ARVOPAPERIKESKUS
OY
BASTROP ENERGY
PARTNERS LP

Not enough data.

LONDON BRIDGE
SOFTWARE HOLDINGS
PLC
SCOTTISH &
ATLANTIC
SOUTHERN ENERGY ELECTRICITY AND GAS
PLC
LTD
CARLTON
SCREENVISION
COMMUNICATIONS CINEMA NETWORK
PLC
LLC
BUNZL PLC
GROUPE PIERRE LE
(Already found)
GOFF
(Paper packaging
wholesale)
PRECISION
HOLDINGS (UK) LTD
WOLSELEY PLC
(Already found)
(Heating equipment
wholesale)
CARDPOINT PLC

REEVES OILFIELD
SERVICES LTD
BROOKS GROUP LTD

HBOS PLC'S 816 NONBRANCH BASED CASH


MACHINES

According to Zephyr. They want to create a bigger market and they


support each other overcapacity
According to Zephyr. they get a stronger portfolio and a better
position especially in the Dallas area - Overcapacity
Not enough data.
According to Zephyr they can serve their customers better and see
it as a way to grow - Overcapacity
Merged with another company the year after.
http://www.bunzl.com/news/28feb05.shtml - they enter France
which supports their position in Benelux, DK and Ireland. They
want to be a logical player to international costumers - Market
Not enough data.
According to Zephyr they get a change to broaden their supply
base and diversify their portfolio - Product
They merged with another company in 2007 and the deal takes place
in 2004.

728 /
250164
729 /
251351

PD PORTS PLC

PD PORTS GROUP LTD

They buy a subsididiary.

SCANIA AB

AINAX AB

730 /
251728
731 /
251838

WINTEN LTD

ESTATES & GENERAL


PLC
MONEYLINE
TELERATE HOLDINGS

Not included. They buy a financial service department which should


be used to manage their shares in other car manufacturing
companies.
Non data available.

732 /
252666

BAE SYSTEMS PLC


(BA)
(Defense company)
ROADSTER LP

733 /
253283
734 /
253651

735 /
254128

736 /
255599

REUTERS GROUP
PLC

MEGGITT PLC
(MGGT)
(Aircraft part and
equipment
manufacture)
CENTRICA PLC
(Already found)
(Power plant)

737 /
255822

EXEL PLC
(Already found)
(Freight transport
service)
MOTORSPORT
VISION LTD

738 /
256264

WOLVERHAMPTON
& DUDLEY

ALVIS PLC
WELCOME BREAK
LTD'S 9 MOTORWAY
SERVICES STATIONS

Deal not completed before 2005.

http://production.investis.com/investors/rs/rs2004/ they can deliver


a better package to the UK army in relation to armoured vehicles
Product
Non data available.

DUNLOP STANDARD
AEROSPACE GROUP
LTD'S DESIGN &
MANUFACTURING
BUSINESSES
KILLINGHOLME
POWER LTD'S CCGT
POWER STATION IN
NORTH
LINCOLNSHIRE.
TIBBETT & BRITTEN
GROUP PLC

http://www.meggitt.com/resources/pdfs/ar2004.pdf - they increases


their position within the aircraft supply market - Product

BRANDS HATCH
CIRCUITS LTD'S FOUR
RACING CIRCUITS
BURTONWOOD PLC

Not enough data.

According to Zephyr they make the deal to be able to supply their


costumer with fewer fluctuations because now they own a bigger
part of the production facility themselves - Product
According to Zephyr they have complementary sectors and
markets and creates a significant player - Overcapacity

The deal is not completed before 2005.

739 /
258639
740 /
259002
741 /
259267
742 /
259639
743 /
259879
744 /
260304

745 /
261104
746 /
262396

747 /
262630
748 /
263509
749 /

BREWERIES PLC
(Already found)
NATIONAL GRID
TRANSCO PLC

CROWN CASTLE UK
LTD

Cannot determine why they change their name.

BT GROUP PLC

ALBACOM SPA

The deal is not completed before 2005.

ISS A/S
(Delisted in 2005)
(Cleaning services)
STENA
FASTIGHETSFRVA
LTNING AB
HANDELSBANKEN
LIV

ENGEL-YHTYM OY

http://www.issworld.com/SiteCollectionDocuments/archive/annual_
report_2004_dk.pdf - They can now deliver all service options in
Finland - Product
Non data available.

ISIS ASSET
MANAGEMENT PLC
(New name: F&C Asset
Management)
(FCAM)
(Asset Management)
WPP GROUP PLC

FOREIGN & COLONIAL


INVESTMENT TRUST
PLC

According to Zephyr They get a presence in Continental Europe


and can create more diversified product portfolio - Product

GREY GLOBAL GROUP


INC.
BRISTOL-MYERS
SQUIBB COMPANY'S
ESTRACE TABLETS
HORMONE
REPLACEMENT
THERAPY BUSINESS
MARKS AND SPENCER
RETAIL FINANCIAL
SERVICES HOLDINGS
LTD
TRAVELODGE LTD'S
136 FREEHOLD HOTELS
PER UNA

Deal not completed before 2005.

GALEN HOLDINGS
PLC
(Delisted)
(New name: Warner
Chilcott)
(Pharmaceutical)
HSBC HOLDINGS
PLC
(Already found)
(Financial Service)
PRESTBURY
HOTELS LTD
MARKS & SPENCER

BOSTADSAKTIEBOLAG
ET DROTT

SPP FONDFRSKRING Not enough financial data.


AB

http://sec.edgar-online.com/2002/08/14/0001113445-02000017/Section2.asp - They buy their intangible assets as well as the


trademark of a certain product - R&D

According to Zephyr they enter a new market where they work


together with a retail store in relation to offer financial solutions to
the costumers - Convergence
Not enough data available.
https://images-na.ssl-images-

263872
750 /
264293
751 /
264843
752 /
265606
753 /
266052
754 /
267552

GROUP PLC
(MKS)
(Clothing retailer)
BBA GROUP PLC
(BBA)
(Aviation service)
Britannic Group plc

amazon.com/images/G/02/00/00/00/24/29/91/24299162.pdf - they
add a new brand to their portfolio regarding clothing for women
Product
AIRCRAFT SERVICE
http://www.bbaaviation.com/news/2001jul11.htm - they needed to
INTERNATIONAL
buy one of the other service companies to get access to growth
GROUP INC.
opportunities - Overcapacity
Allianz Cornhill Insurance The deal takes place in 2004 but they merge with Resolution Life
plc's life insurance business Group in 2005 and create Resolution.

Standard Chartered
Bank plc
(STAN)
(Banking services)
Regus Group plc
(RGU)
(Office management)
Mitsui & Co., Ltd

PrimeCredit (Asia) Ltd

HQ Global Holdings Inc.


Edison Mission Energy's
international generation
portfolio
Exodus Communications
Inc.'s certain assets

755 /
267854

Cable & Wireless plc

756 /
267934

Aktiv Kapital ASA


(AIK)
(Financial Service)
Royal Bank of Scotland
Group plc, The
(Aready found)
(Financial servise)
Dairy Farmers of
Britain Ltd

Olympia Capital ASA

Norwich Union plc

HPI Group Holdings Ltd

Barchester Healthcare
Ltd
(Private company)

Westminster Healthcare
Ltd

757 /
269320
758 /
270418
759 /
271453
760 /
271982

Lynk Systems Inc.

Associated Co-operative
Creameries Ltd

http://files.shareholder.com/downloads/stanchar/277086981x0x1691
8/1E9DFC51-64DA-40C6-892F2D7D7BF52ABA/SCB_2004_Annual_Review_low.pdf - they want
to get a better position in the Asian market - Market
http://www.regus.com/assets/en-us/financial/Acquisition.doc - they
make the deal due to increased demand and because they want to
become a significant player in the US market - Market
Their headoffice is located in Tokyo.
More than one acquirer.
http://corp.aktivkapital.com/Global/Corporate/Financial%20reports/
Annualreport_2004.pdf - they become market leaders with respect
to delinquent consumer debt portfolios - Overcapacity
http://www.investors.rbs.com/investor_relations/announcements/Rel
easeDetail.cfm?ReleaseID=154190 they go through with the deal
to get a better position in the fastest growing credit card payment
markets in the world - Overcapacity
Only data back to 2005 and the deal takes place in 2004. They are
private owned and therefore they are obligated to have the financial
statements on the webpage.
They are a part of Aviva and only long-term savings in the UK keep
the name Norwich Union.
http://search.ft.com/ftArticle?queryText=Barchester%20Healthcare
&page=2&id=041016001403&ct=0 the nursing sector has
experienced consolidations and large merger activity in this period

(Nursing home
operator) (The FS for
2007 is not available.)
761 /
272148

and Barchester wants Westminster due to their geographic fit and


the expected synergies - Overcapacity

Barclays plc
(Already found)
(Financial service)
HSBC Holdings plc
(Already found)
(Financial service)

Juniper Financial
Corporation

Laird Group plc, The


(Already found)
(Electronic equipment
component
manufacture)
ARM Holdings plc
(ARM)
(Computing microprocessor developer)
Diageo plc

Centurion Wireless
Technologies Inc.

Scotia Gas Networks


plc

National Grid Transco plc's The deal is not completed before 2005.
south-of-England and
Scotland gas networks

767 /
275000

Rowe Evans
Investments plc

Bertam Holdings plc

The deal is not completed before 2005.

768 /
275484
769 /
276924

Kone Oyj's Cargotec


division
QinetiQ Ltd
(QinetiQ)
(Consulting)

MacGREGOR
International AB
Foster-Miller Inc.

770 /
278292

Tesco plc
(Already found)

Wm Morrison
Supermarkets plc's 10

They demerge the department in 2005 and the deal takes place in
2004.
http://www.qinetiq.com/home/investor_centre/financial_information
.Par.0016.File.pdf - they are working in consulting services
regarding defense and security and buy a company that produces
robots to military operations - convergence
Cannot find any data regarding the deal.

762 /
272533
763 /
272895

764 /
272920
765 /
273813
766 /
274538

Valeu Promotora de
Vendas Ltda

http://www.investor.barclays.co.uk/results/2004results/annual_repor
t/website/downloads/barclays_ar_2004.pdf - they enter the US credit
card market - Market
http://www.hsbc.com/1/2/newsroom/news/news-archive-2004/hsbcbrazil-signs-agreement-to-acquire-consumer-finance-operations-ofindusval - they are already present in Brazil but they increases their
position - Market
http://www.laird-plc.com/about/index.cfm?f=1 they produces
electronic equipments but due to this deal they also enter the market
for antennas - Convergence

Artisan Components Inc.

According to Zephyr. they get a new technology which they can


use in their own business and create a more harmonized product R&D

Ursus Vodka Holding NV

The deal is not completed before 2005.

(Retail)

Safeway stores

Westfield Group

Duelguide plc

The deal was not completed before 2005.

Insight Investments Ltd

BC Property Holdings Ltd

Not enough data available.

QAS Ltd

http://experian.global-pressoffice.com/documents/showdoc.cfm they get a new software they can add to their existing products and
thereby support the costumers with a even better product - R&D

774 /
283804

Experian Ltd
(Not listed)
(Information, analytical
and marketing service)
Williams Lea Group
Ltd

Bowne Business Solutions


Inc.

Not enough data available.

775 /
285118

Resolution Life Group


Ltd

Swiss Life (UK) Group plc

The company begins in 2005 due to a merger of 3 companies.

776 /
286861

British Land Company


plc, The
(Already found)
(Real estate investor)
Sportingbet plc
(SBT)
(Online and telephone
sports betting.)
Cranswick plc

Spirit Group Ltd's 65 pubs

http://www.britishlandreports.com/FinancialReports/2004InterimSta
tement/chairman.html - they add new pubs to their existing active
portfolio - Geographic

Paradisepoker

http://www.sportingbetplc.com/pages/14/Our+Vision.stm they buy


the brand to be able to offer poker worldwide - Product

Perkins Chilled Foods Ltd

The deal is not completed before 2005.

Friends Provident plc

Lombard International
Assurance SA

The deal is not completed before 2005.

780 /
288677
781 /
290642
782 /
291746

TBI plc

Alterra Luton (UK) Ltd

Helgeland Sparebank

Sparebanken Rana

TBI is taken over by Abertis in 2004. The same year as this deal
takes place.
The deal is not completed before 2005.

Brixton plc

Industrious Holdings
(Jersey) Ltd

The deal is not completed before 2005.

783 /

Augean plc

Atlantic Waste Holdings

Not enough data available.

771 /
281518
772 /
281657
773 /
282377

777 /
287356
778 /
287674
779 /
288294

292465

(AUG)
(Waste management
service)
American Home
Assurance Company

Ltd
Royal & SunAlliance
Insurance Group plc's
Japan branch operations
and portfolio

The deal is not completed before 2005.

785 /
293461
786 /
293537

Serco Group plc

ITNET plc

The deal is not completed before 2005.

SpareBank 1 MidtNorge

Romsdals Fellesbank ASA

The deal is not completed before 2005.

787 /
293772
788 /
294938

Cidron Invest AB

Finnveden AB

The deal is not completed before 2005.

Airport Concessions
and Development Ltd

TBI plc

The deal is not completed before 2005.

789 /
298134
790 /
298310

Travis Perkins plc

Wickes plc

The deal is not completed before 2005.

Kingston
Communications (Hull)
plc
(KCOM)
(Telecommunication
services)
Pubfolio Ltd

Omnetica Ltd

http://www.kcom.com/investorcentre/annualreport/2005/Full%20rep
ort.pdf they get access to new and attractive technologies with
respect to enterprise data and IP networking skills - R&D

Punch Taverns plc's 545


Innspired pubs

The deal is not completed before 2005.

792 /
300227
793 /
301015

Smiths Group plc

Medex Inc.

The deal is not completed before 2005.

Globe Pub Company


Ltd, The

New Pubco (TC) Ltd

Not enough data available.

794 /
301473
795 /

Premier Foods plc

Bird's Custard

The deal is not completed before 2005.

Serco Group plc

RCI Holding Corporation

The deal is not completed before 2005.

784 /
292702

791 /
299229

303764
796 /
304287

TietoEnator Oyj

S.E.S.A. Software und


Systeme AG

The deal is not completed before 2005.

797 /
305098

Cobham plc

Remec Defense & Space


Inc.

The deal is not completed before 2005.

798 /
307062
799 /
315716

Barclays plc

Fondo Immobili Pubblici

There are 4 acquirers and the deal is not completed before 2005.

Denbridge No. 2
Holdings Ltd

Synergy Gracechurch
Holdings Ltd

Non data available.

800 /
318891

SF HF
(Already found)
(Seafood processor)
Prestbury Wentworth
Ltd

Labeyrie SA

http://www.alfesca.com/sifgroup/upload/files/pdf/sif_annual_report
_04.pdf - they buy the company to get some really strong brands in
Europe - Geographic
Not enough data available.

P&O Ports Ltd

Gujarat Adani Port Ltd

801 /
329650
802 /
336157
803 /
344772
804 /
383565

Elcoteq Network Oyj


(ELQAV)
(Communication
network service)
British United
Provident Association
Ltd, The

Spirit Intermediate
Acquisitions Ltd

The deal takes place in 2003 and P&O is taken over by DP World in
2006.
Tellabs Oy's manufacturing http://www.elcoteq.com/NR/rdonlyres/4C997775-FA27-4D0Coperations in Espoo
AAF9-2A89DA718DB4/0/Annualreport2003.pdf - they add a
production facility to their portfolio and they agree to deliver
products to Tellabs afterwards - Product
AXA Health Australia
More than one acquirer.

805 /
385270

Orchard Street
Investment
Management LLP

Orion Properties No 1 Sarl

Not enough data available.

806 /
420873

Statkraft SF

Graninge AB's 24
hydropower plants

The deal is not completed before 2005.

807 /
445511

Bondcare Ltd

Helen McArdle Care Ltd

Not enough data available.

808 /
499321

Hufvudstaden AB
(HUFV.A)
(Real estate
management)
QinetiQ Group plc
(Already found)
(Scientific research
services.)

Vasaterminalen AB

http://findarticles.com/p/articles/mi_m0EIN/is_2001_Feb_16/ai_704
84628 - they add a office building to their asset portfolio - Product

Westar Aerospace and


Defense Group Inc.

http://www.qinetiq.com/home/investor_centre/financial_information
.Par.0016.File.pdf - they want to offer new technology to their
customers in consulting - Convergence

853 / 75927
(10/00)

3i Group plc (III) venture


capital investment
services

Bank Austria TFV High TechUnternehmens Beteiligung


GmbH

854 / 76862
(12/00)

EquitiLink Group

233230
(04/04)

Aberdeen Asset
Management plc (ADN)
asset management
services
Admiral Taverns Ltd puboperator

Accounts and quotes already found


http://www.datamonitor.com/industries/news/article/?pid=507B577EA5A6-4E19-B690-3C4654E1A0CB&type=NewsWire entering Austria and
opening an office there market
Accounts and quotes already collected
AAM AR 2000: acquisition add scale to existing or complementary
businesses, gain foothold in fast growing Australian market market

Enterprise Inns plc's 239 pubs

Not enough available financial data not listed

71901
(05/00)

AFOS International Ltd


steel manufacturer

Specialised Petroleum
Services Group Ltd

No information about this deal possibly a subsidiary of 3i, no separate


accounts available

247267
(05/04)

Aggregate Industries plc Frehner Construction


quarrying and aggregates Company Inc.
manufacturer

Not listed (delisted in april 2005)


Acquired by Holcim group in 2005
Not included

82802

Aitken Campbell &


Company Joint Venture

Aitken Campbell & Company


Ltd

Aitken Aitken not included

877 / 86533
(03/01)

Alfred McAlpine plc


construction services

Kennedy Utility Management


Ltd

Accounts already collected delisted in February 2008 (acquired by


carillion)
http://www.propertymall.com/press/article/7167 - complement existing
businesses and improve the construction services business
http://miranda.hemscott.com/ir/mca/reports/pdf/McAlpine_Report_200
1.pdf - yield scope and scale to construction service area, continue to
improve this area through bolt on acquisitions, yielding efficiencies and
cost savings - overcapacity

809 /
551896

888 / 92905
(12/01)

Allied Domecq plc


alcoholic drinks and beer
producer

Buena Vista Winery Inc.

816 / 56693
(02/00)

Alphameric plc (ALM) IT


consultancy services &
software developer

Pennine Retail Holdings Ltd

86819
(08/01)

AMP (UK) Investment


Services Ltd investment
services

Interactive Investor
International plc

830 / 61549
(05/00)

Anite Group plc (AIE) IT


services and consultancy

Datavance Group SAS

867 / 80469
(12/00)

Anite Group plc see


above

Calculus Solutions Ltd

931 /
199321
(12/03)

Archant Regional Ltd


Newspaper publisher

Independent News and


Media Ltd's North London
division

940 /
231208
(05/04)

Associated British Foods


plc (ABF) food
manufacturing

Unilever Group's Mexican


food oils and fats brands

110638
(05/02)

Athleisure Ltd clothes &


footwear retailer

Blacks Leisure Group plc's


sport & fashion division

873 / 83961
(03/01)

Babcock International
Group plc

Hunting Defence Services

Accounts already collected, delisted now, but quotes are collected


http://findarticles.com/p/articles/mi_m3488/is_8_82/ai_77614863 important step in strategy to build a global wine business and a
significant addition to existing wine operations in US, acquiring strong
brand in wine with high quality geographic

http://www.datamonitor.com/industries/news/article/?pid=7277204D4BAD-4D2C-92D1-261021446BCB&type=NewsWire - restructuring in
Alphameric retail from the acquisition gained scale, large customer
base, and large retail customers
http://findarticles.com/p/articles/mi_qn4158/is_20000219/ai_n1429078
9 gain entry into the e-commerce market product
Not included, subsidiary of Australian based company, no separate
accounts

http://www.hemscott.com/ir/aie/ir.jsp?page=newsitem&item=7872675060243 - IT consultancy services to banking,


telecoms, public sector and other customers in France. Focuses on Ecommerce and internet services. critical mass in E-commerce
consultancy services in France and increase Anite's presence in two of its
focused vertical markets. product
http://www.hemscott.com/ir/aie/ir.jsp?page=newsitem&item=2296120023 acquisition of leading supplier complement
the existing and extensive telecom offerings Geographic
Not listed
http://www.archant.co.uk/assets/downloads/ARA03business_report.pdf
- acquiring newspaper titles that are important in their regional areas,
helps archant to increase scope and presence regionally (becoming 5th
largest) and in London primarily the increase scale and scope
overcapacity
Accounts and quotes already collected
http://www.abf.co.uk/media/press_release.asp?pr=20040309_1 - provides
entry to the fast growing Mexican market, and also the possibility to introduce
these brand to the US market where they are market leader - market
Deal not included, not enough financial information, not listed

Accounts and quotes already collected


http://www.babcock.co.uk/index.cfm/recordid.2/newsitem.9 - expanding

the defence and support services, becoming even stronger in this area
overcapacity
919 /
148818
(03/03)

BAE Systems plc (BA)


Defense company

Mevatec Corporation

937 /
214367
(09/03)

Barclaycard credit card


services

Clydesdale Financial Services


Ltd

822 / 58114
(03/00)

BBA Group plc aviation


services and
manufacturer

Oxford Aviation Holdings Ltd

118067
(05/02)

Berkeley Group plc, The


residential construction
services

York Road Ltd

892 /
101336
(01/02)
129266
(12/02)

Berry Birch & Noble plc


(BBB) financial services

Berkeley Financial Services


Group Ltd

Borregaard Industries Ltd


Norge chemical
manufacturer

Atisholz AG

866 / 80383
(11/01)

BP Amoco plc oil


exploration and
extraction

Solvay SA's polypropylene


business

Accounts and quotes already collected


http://www.bp.com/genericarticle.do?categoryId=2012968&contentId=2
001525 combining with existing business creating one of the worlds
largest in the area of propylene - overcapacity

823 / 58132
(03/00)

Brake Bros plc Food and


beverages wholesaler

M&J Seafoods (Wholesale)


Ltd

83959

Britannia Building Society

Money Store UK, The

Delisted 09/2002
http://www.referenceforbusiness.com/history2/4/Brake-Bros-Plc.html strong foothold in the business of fresh fish - product
No information about this deal

Accounts and quotes already collected


Zephyr: Expand engineering technology operations
http://www.baesystems.com/Newsroom/NewsReleases/2003/press
_21032003.html - acquisition of leader in missile defence and
enhances our ability to provide high-end services for our growing systems
engineering and technical assistance customers product
Not listet
http://129.3.20.41/econ-wp/get/papers/0405/0405004.pdf - acquiring
clydesdale enhances Barclaycard merchant network. The credit card
business in the UK is a mature market with high and intense competition
overcapacity
Accounts and quotes already collected
http://www.bbaaviation.com/about/grphistory263.htm - acquiring skills
in pilot training for the first time. Complement existing services but new
area of service convergence
No information about the deal , not included

Renamed Berkeley Barry Birch after the merger


Zephyr: enlarged group will be better positioned for competition, and
gain synergies, mature industry overcapacity
No financial data available for the company

(02/01)

banking services

883 / 90862
(05/01)

Carphone Warehouse
Group plc (CPW) mobile
telecommunications

Cellcom Ltd

http://www.cpwplc.com/phoenix.zhtml?c=123964&p=irol-history first
move into facilities management product

909 /
134212
(10/02)

Cattles plc (CTT) - credit


services

Associates Capital
Corporation plc's motor
finance loan portfolio

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2002/10/1
8/cnmoo18.xml - acquisition to be earnings enhancing and broaden the
base to fully exploit the technology base - product

75155
(10/00)

Cedar Group plc


software consultancy
services

Enterprise Solutions Group

Not listed (delisted in 2002)


Not enough financial data

125872
(05/02)

Centaur Grain Ltd grain


trading services

Aylsham Grain Marketing Ltd

No information about this deal

885 / 91556
(07/01)

Centrica plc (CNA) gas


production and
distribution services

One.Tel plc

951 /
271186
(10/04)

Centrica plc

Dyno-Rod plc

276644
(11/04)

Chaco Resources plc


(AMER) oil and gas
exploration

Amerisur SA

Accounts and quotes already collected


http://www.centrica.co.uk/index.asp?pageid=39&newsid=69&type=17&y
ear=archive becoming one of UKs largest in a growing industry. One.tel
keeps its own name
http://www.centrica.co.uk/files/reports/2001_annual_report.pdf acquiring one.tel yield position in new business area
telecommunications convergence
Accounts and quotes already collected
http://www.centrica.co.uk/index.asp?pageid=39&newsid=444 add to
existing home-service business increase its access to the on-demand
market product
Renamed: Amerisur resources
Not enough financial data, not included

206725
(03/04)

Chelsfield plc
-real estate investor and
developer
Chester Property
Holdings Ltd real estate
development

Stannifer

Not enough financial data, and not listed

Southend Property Holdings


plc

Not enough financial data, no information about this deal, not included

153003
(03/03)

78418
(03/01)

Chubb plc - Security


services and lock
manufacturer
Clear Channel UK Ltd
outdoor advertising
services

BBR Security

Not enough financial data available deal not included

Score Outdoor Ltd

No information about this deal

86942
(03/01)

Close Finance (CI) Limited


financial intermediation

KC Finance Ltd

No separate accounts - a subsidiary of close brothers group deal not


included

67269
(07/00)

CMG plc

Computer Answers
International Ltd

Deal not included merger with logica in 2002 not enough separate
financial data to analyze

299918
(11/04)
80677
(01/01)

Cognita Schools Ltd Private school operator


Cordiant
Communications Group
plc advertising agency
services

Asquith Court Schools Ltd

No information about the deal and not enough financial data

MicroArts Corporation

No accounts before 2003 and deal takes place in 2001


Acquired by WPP group in 2003

899 /
115331
(05/02)

Danisco A/S food


ingredient and sugar
manufacturer

Perlarom SA

863 / 76541
(01/01)

De Vere Group plc Pub and hotel operator

Cavendish Hotel - London

146175
(02/03)

Ebookers plc online


travel reservation site
operator

Travelbag Holdings Ltd

56510
(02/00)

e-doc Group plc

Document Management
Services Ltd

102365
(05/02)

http://www.allbusiness.com/marketing-advertising/4194936-1.html
(LSE:CRI)
Accounts and quotes already collected
Zephyr: becomes 5th largest in the sector flavour producer
http://www.danisco.com/cms/connect/corporate/investor%20relations/i
nvestor%20news/en/business%20updates/2002/fla_25_en.htm strengthen position in sector of flavour producer, and underline position
as global leader in food ingredients - overcapacity
Delisted in September 2006
http://www.caterersearch.com/Articles/2000/12/14/33632/de-verebuys-cavendish-for-bargain-60m.html - establishes presence in London
market
Acquired by Cendant in October 2005
Not included

Acquirer is a holding company, no information about the holding


company and no separate accounts

77355
(01/01)
901 /
125505
(07/02)
950 /
269606
(08/04)

Elan Europe Ltd

Quadrant Healthcare plc

Electra Partners Europe


Ltd venture capital

Newhill Ltd

Emap Communications
Ltd

Cannes Lions International


Advertising Festival

906 /
132009
(06/03)

Emap plc (EMA) radio


station operator

Excelsior Publications SA

79885
(01/01)
70777
(07/00)
306212
(12/04)

Eniro AB

Windhager Mediengruppe

Ennstone plc (ENN)

Breedon plc

Elan Europe is a wholly owned subsidiary of Elan Corporation, no


separate accounts not included
http://www.checkout.ie/News.asp?ID=131 continues to trade as
independent unit, EPE enters to guide and control the management
product
Not listed
http://www.emap.com/press-office-item.asp?Resource=2471 acquiring
the global leader in this segment they have themselves been in for 10
years - overcapacity
http://www.emap.com/press-office-item.asp?Resource=2571
acquisition of strong brands in france making emap the 2nd largest
publisher in france. The acquired titles is integrated into emap yielding
synergies - overcapacity
Accounts and quotes already collected
Not included windhager liquidated less than two years after.
No information about the deal

Equinox Converged
Solutions Ltd

Synetrix Ltd

Not enough financial information

954 /
281370
(10/04)

Erinaceous Group plc


(ERG) property services

Hercules Property Services


plc

Zephyr: Operations overlap in several areas, and thus combining forces


will yield significant synergies, scale and gains from ex. Cross selling
overcapacity
http://www.erinaceousir.com/erinaceous/ir/reports_presentations/repo
rts_archives/2004/reac2004/reac2004.pdf - consolidation and integration
of operations - overcapacity

849 /
74989
(11/00)

Finnveden AB
(FIB)
(Manufacturer of
fasteners and
components to the
automotive industry.)
First Choice Holidays
plc
(TT.)
(Travel agency)

Bulten AB

http://www.finnveden.com/customer/templates/newspage.aspx?id=3
06 they get a better position in the European marketplace as well
as in Asia - Market

Holiday Hypermarkets
(1998) Ltd

http://www.tuitravelplc.com/tuitravel/media/press/FCpressarchive/in
dex.jsp?ref=86&year=2000 - they have bought hypermarkets before
but because they turned out to be such a good business they decided
to buy more - Product

814/ 56295
(02/00)

78412

Fjord Seafood ASA


(Already found)

Pieters Visbedrijf NV

More the one acquirer.

55272

Freecom.net plc

Pegasus Group plc

Non financial data available.

58150

Freeserve plc

Smartgroups.com

Non financial data available.

60400

Freeserve plc

Intracus Ltd

Non financial data available.

64303

FT Knowledge Ltd

Forum Corporation, The

Not enough financial data available.

56880

Gameplay.com plc

Computec Media AG's


online games division and
games retailing businesses

Not enough financial data available.

292514

GB Gas Holdings Ltd

Zockoll Group Ltd, The

Not enough financial data available.

75085

Georgica plc

Allied Leisure plc

857 /
78408
(01/01)
848 /
73204
(11/00)

Getinge AB
(Already found)

Maquet AG
Nissan Motor Co., Ltd's
drive shaft operations

61653

GKN plc
(GKN)
(Automotive
component
manufacture)
GN Netcom A/S

Only data back to 2001 and the deal takes place in 2000. The
company does not have a homepage.
http://www.getingegroup.com/pdf/getinge_annualrep_2000.pdf they add a new area called surgical systems to their existing areas Convergence
http://www.gkn.com/news/NewsItem.asp?LastPage=Search&NewsI
D=64 they gain the production facilities from Nissan in Japan and
they expect to get synergies in the future with respect to other of
their engineering products - Product

60194

Granada Group plc

Border Television's
television assets

929 /
183090
(10/03)

GX Networks plc
(FFC)
(Internet provider)

Pipex Internet Ltd

Jabra Corporation

GN Netcom is a subsidiary of GN store nord and they have their


own financial statements but only back to 2002 and the deal takes
place in 2000.
Merged into ITV in 2004 and can only find data back to 2001 where
the deal takes place.
http://www.theregister.co.uk/2003/10/03/gx_networks_to_buy_pipe
x/ they merge to be able to grow and become a significant player in
the market. The new company is called Pipex Communication
because this is the strongest brand. GX Network can add new

908 /
133776
(10/02)

Halma plc
(HLMA)
(Safety and security
systems)
Hammerson plc
(Already found)
(Real estate developer)
Harvey Nash Group plc
(HVN)
(Recruitment agency
and IT outsourcing
service)
Hays plc
(HAS)
(Logistic technology
service)
Henkel Loctite
Investments Ltd

Bureau D'Electronique
Appliquee SA

837 /
66079
(08/00)

914 /
142772
(02/03)
827 /
60215
(04/00)
841 /
68050
(01/00)

RT Group Developments
Ltd
TechPartners International
Limited

product to their portfolio - Product


http://www.halma.com/halmaplc/about/acquisitions.jsp?ref=8 they
can use the technology that BEA is in position of in relation to their
elevator door systems - R&D
http://www.hammerson.com/pages/101/2002+Press+Releases.stm?a
rticle_id=172 they add new assets to their portfolio regarding
shopping malls in the UK market - Overcapacity
http://www.harveynash.com/pdf/2005/Harvey%20Nash%20Annual
%20Results%202001.pdf they get access to the US market where
they expect high growth opportunities within the coming years Market

EPS Ltd

http://www.hays.com/energy/nuclear/eps-environmental.aspx - they
become a subsidiary that work in the Irish market - Geographic

Kelsey Industries plc

N.A. They buy a subsidiary.

Highbury House
Communications plc
(Delisted in 2006)
(Magazine publishing)

Columbus Group plc's


magazines division

913 /
142545
(02/03)

HSBC Holdings plc


(Already found)
(Financial Services)

Keppel Insurance Pte Ltd

846 /
72616
(08/00)
886 /
92736
(07/01)

Incepta Group plc

Cunningham
Communication Inc.

Innovation Group plc,


The
(Event software
developer)
(Already found)

MTW Corporation

http://www2.hemscott.com/scripts/AFXnewstory.dll/text?EPIC=CO
L&SerialNumber=1033&NewsType=AFR&Indate=26/06/2000 they work in a competitive market and to secure their position and
be able to continue their growth companies must consolidate Overcapacity
http://www.hsbc.com/1/PA_1_1_S5/content/assets/investor_relation
s/hsbc2003ara0.pdf and http://www.hsbc.com/1/2/about-hsbc/grouphistory - they get more products in Singapore in relation to
insurance - Product
http://www.allbusiness.com/company-activitiesmanagement/company-structures-ownership/6478817-1.html - they
merge to become a global leader - Overcapacity
http://www.innovation-group.com/OurHistory.aspx - they add new
resources to their company in relation to technical capabilities
surrounding service-orientated architectures and components R&D

71348

98 /
129592

Insight Investment
Management Ltd

Rothschild Asset
Management Ltd

Insight is a part of HBOS and was formed in 2002 which is the same
year as the deal took place.

865 /
80236
(02/01)

ISS A/S
(Already found)

Lavold Groep

http://www.issworld.com/SiteCollectionDocuments/archive/news/is
sworld_news/dk_2000.pdf - they get a stronger position in the Dutch
market with respect to facility services Overcapacity

889 /
93986
(07/01)

ISS A/S
(Already found)

M&M Medical

891 /
99195
(09/01)
64921

JJW Hotels & Resorts


(Already found)

Berners Hotel (The) Ltd

Knutsford Group Plc

WILink.com Inc.

911 /
141630
(01/03)

Kyro Oyj Abp


(GLA)
(Glass and glass
machinery
manufacturer)

Glasto Holding BV,


Z. Bavelloni Immobilaire
Spa.

871 /
83393
(04/01)

Land Securities plc


(Already found)
(Real estate investor)

Whitecliff Properties Ltd

http://www.issworld.com/press/archives/press_releases/Pages/iss_an
d_m_and_m_join_forces_to_develop_health_care_in_the_nordic.as
px - they are in the same industry and M&M Medical continues as a
independent subsidiary of ISS - Geographic
http://www.jjwhotels.com/en/corporate/history.shtml and
http://www.jjwhotels.com/en/thebernershotel/ they buy a luxury
hotel in London - Geographic
N.A. They merge and continue as WILink.com Inc. which is an
American company.
http://www.kyro.fi/contentparser.asp?deptid=1164&rssfile=http://c
ws.huginonline.com/G/3059/PR/200312/1059037.xml - they enter
into an agreement with the two companies and become the market
leader regarding machinery for the glass production and before the
deal Kyro was market leader in relation to glass production
Overcapacity
http://www.landsecurities.com/websitefiles/land_securities_report_2
001.pdf - they buy new land in UK with the aim to create a new
urban district Product

82680

Lexington Group Ltd


(the)

Wolsey Securities Ltd

917 /
146167
(04/03)

LGP Telecom Holding Allgon AB


AB
(Delisted in 2004 due to
the deal.)
(Communications
equipment
manufacturer)
Lloyds TSB Asset
Dutton Forshaw Group Ltd

141922

Not enough data available.


http://findarticles.com/p/articles/mi_m0EIN/is_2000_Sept_6/ai_650
02711 - R&D. Allgon has a wide product range and is leading in the
market of high tech IT components. Invests heavily in R&D. LGP
will benefit from the high tech products og gain access to new
segment acquired by powerwawe technologies (may 04). Check
datastream for stock prices, LGP Allgon Holding AB R&D
No separate financial statements available.

Finance Division Ltd


54155

London Securities plc

Ansul Holdings SA

N.A. the deal takes place in 1999.

221265
(02/04)

Lynxangel (Holdings)
plc

Torex Retail Ltd

Not enough financial data.

955 /
282256
(10/04)

Marylebone Warwick
Balfour Group plc
(Already found)
(Hotel operator)

Hotel du Vin Ltd

http://www.mwb.co.uk/mwb/hotels.jsp - their existing hotels are


mainly located in boutique areas where as Hotel du Vin is located in
cathedral and university areas. They continue to operate under
separate names - Geographic

915 /
142816
(04/03)

Minelco AB
(Not listed)
(Minelco develops,
produces and markets
selected minerals
customised for industry
worldwide)

Stinnes AG's Frank &


Schulte and Minerals
Division

http://www.jepix.se/pdfer/LKAB_arsredovisning_2003.pdf - they
make a vertical acquisition to be able to deliver their products to the
costumers - Product

78095

Moneyextra plc

Ingleby (1045) Ltd

Non financial data available.

216146

MotorSport Vision Ltd

Brands Hatch Leisure plc

75503
(10/00)

Multimedia
Corporation plc

Illuminator plc

Not enough financial data available. The year before the deal
contains no numbers.
Not included bought shortly after by other company no
information

862 /
79475
(12/00)

NDS Group plc


(Not listed in UK until
2003 and the deal takes
place in 2000)
(Internet access
software developer)
Nobia AB
(Already found)
(Kitchen manufacture)

Orbis Technology Ltd

http://www.nds.com/pdfs/Annual_Report_2001_b&w.pdf -they gain


the possibility to include betting, using computers and cell phones,
into their portfolio of technological products - Product

Gower Group Ltd

http://www.nobia.com/Documents/eng/Reports/Annual/Nobia_AR_
2003_eng.pdf -they buy Grower because they have a strong position
in the DIY market and that is an important distribution channel now
and in the future Product

935 /
209562
(12/03)

945 /
244808
(06/04)

NordAnglia Education
plc
(NAE)
(Provider of training,
education and
childcare)
Novar plc

Leapfrog Day Nurseries


plc

http://www.nordanglia.com/article.php?article=MjI2 they
increases their number of nurseries and locations to become market
leaders Overcapacity

85893
(04/01)
101866

Albert Ackermann GmbH


& Co KG
Pacific Spirits (UK) Ltd Blairmhor Ltd

Cannot find the deal.

819 /
57591
(03/00)
65816
(06/00)
73104

Pandox AB
(Delisted 2004)
(Hotel operator)
Pearson Television Ltd

Hotellus International

Powderject
Pharmaceuticals plc

Medeva Vaccines

http://www.pandox.se/Reports.aspx (Report 2000 page 4) they


want to be present in the Northern part of Europe and this is the
reason for the deal - Market
Pearson Television is bought by RTL Group less than two years
after this deal takes place.
Not enough financial data.

QinetiQ Ltd
(Already found)
(Scientific research
service)
Quintain Estates and
Development plc
(QED)
(Real estate investor)
Ramirent Oyj
(Already found)
(Machinery
manufacture)

Westar Corporation

According to Zephyr. they are able to deliver a broader range of


products to their customers in relation to defence Product

Wembley (London) Ltd

http://www.quintain-estates.com/News/ArchiveNews.aspx - they
want to create more jobs and facilities for this part of London
Product

Altima AB

Rank Group plc


(RNK) Now Exxon
mobil (XOM at NYSE)
(Hotel operator)
Reckitt Benckiser plc
(Already found)

Blue Square Ltd

http://qfx.quartalflife.com/clients/(S(2jit0fmsl3xvr155s51jhq55))/fi/r
amirent/rss/news.aspx?culture=en-US&quantity=99999 they close
a lot of depots in the Nordic countries after the merger and the
administration of the new units will be taken on by Ramirent
Overcapacity
No available information

953/
278193
(12/04)
903/
126652
(08/02)
907 /
132688
(01/04)
146053
(01/03)
861 /
78756

TalkBack Productions

Mosquito Coil Group

Not enough financial data.

http://www.reckittbenckiser.com/RBTemplates/MediaLatestNewsIte
m.aspx?pageid=108 they become present in the Indonesian market

(11/00)

(Household product
manufacturer)

932 /
200036
(10/03)

REIT Asset
Management Ltd
(Already found)
(Asset management)

Azorim Properties Ltd

According to Zephyr. they want to enter Israels real estate market


Market

842 /
70102
(06/00)

Reuters Group plc


(Already found)
(news information
services)
RMC Group plc
(Coated and other
materials)

Yankee Group Research


Inc.

http://www.about.reuters.com/home/materials/investorrelations/resu
lts/latestandarchivedresults/2000prelim_full.pdf - they want to build
larger scale business Overcapacity

Alexander Russell plc

Not enough financial data.

941 /
232499
(07/04)

Roshni Investments plc


(SPT) called Spiritel
(Investment company)

Expo Communications Ltd

http://www.spiritelplc.com/downloads/Roshni_Placement_July04.p
df - they want to be part of the telecommunication market and this is
their first investment in this segment Product

56116

Royal Bank Financial


Group

Ernst & Young Trust


Company Ltd

N.A. it is a Canadian bank.

926 /
175108
(11/03)

Sage Group plc, The


(Already found)
(Software supplier)

Softline Ltd

http://www.investors.sage.com/company_information/timelines/acq
uisition_table/ they want to get a position in the South African
market Market

928 /
179240
(09/03)

Sage Group plc, The


(Already found)
(Software supplier)

Timberline Software
Corporation

http://www.investors.sage.com/company_information/timelines/acq
uisition_table/ they add volume to their business in the American
Market Overcapacity

88578

Salton UK

Pifco Holdings plc

Not enough financial data.

828 /
60242
(05/00)

Sanctuary Group plc,


The
(Delisted 2007)
(Music provider)

Castle Music Publishing


Ltd

http://findarticles.com/p/articles/mi_gx5202/is_1998/ai_n
19122746/pg_ they double their revenue and get a
lot of solid deals because CMC had long-lasting agreements with a
lot of bands Overcapacity

87518
(06/01)

which is a good way into the Asian market in general Market

261588
(08/04)

Singer & Friedlander


Group plc
(Investment banking)

Wintrust plc

They are a subsidiary of Kaupthing bank from Iceland.

946 /
244966
(07/04)

SKF AB
(SFK.B)
(Bearing and
engineering products)

Willy Vogel AG

882 /
90717
(05/01)

Smith & Nephew plc


(Already found)
(Medical device
manufacturer)

Westaim Biomedical
Corp's US and Canadian
Burns Dressing Business

875 /
85684
(05/01)

Smiths Group plc


(Already found)

Barringer Technologies
Inc.

942 /
233226
(04/04)

Smiths Group plc


(Already found)

Dynamic Gunver
Technologies LLC

944 /
242958
(05/04)
956 /
287296
(10/04)

Smiths Group plc


(Already found)

TRAK Communications
Inc

Smiths Group plc


(Already found)

Integrated Aerospace Inc.

176671
(07/03)
57757

Soldier Ltd

Hamleys plc

http://www.skf.com/portal/skf/home/news?searchcategory=all&fro
mdate=20040101&todate=20041231&contentId=027128&x=0&y=
0# they get a better position in the Lubricant market and add the
product knowledge to a separate business unit in the Group
Industrial Division Product
http://global.smithnephew.com/cps/rde/xbcr/smithnephewls_master/AR01complete.pdf20.pdf - they buy a company which specialize in
wounds treatment which can support their existing business
Product
http://www.smithsgroup.com/siteFiles/resources/reportAttachments/Smiths_RA.pdf they add narcotic detection systems to their portfolio and that is
complementing their existing business very well Product
http://www.smithsgroup.com/press_release_details.aspx?releaseID=86 they want a
better position in the US market and that is done by investing in new
technology and business - R&D
http://www.smithsgroup.com/press_release_details.aspx?releaseID=88 they
increases their position by buying new technologies - R&D
http://www.smithsgroup.com/press_release_details.aspx?releaseID=96 they can now
deliver all in relation to landing gear for airplanes to their cosutmers
Product
Not enough financial data available.

Southnews plc

Denitz Investments Ltd

170243

Stena AB

Peninsular & Oriental


Steam Navigation
Company plc's ferry

SW is acquired by Trinity Mirror the same year as this deal and the
financial data in Zephyr is the one of SW.
Not enough financial data available.

operations on the Irish Sea


923 /
163837
(09/03)

SunGard Insurance
Services Ltd
(Private company)
(Insurance company)

Sherwood International plc

According to Zephyr. they both work in the insurance industry and


by merging they get a stronger position in the European market
Overcapacity

111916

Superfos Industries A/S

Jotipac Group A/S

Not enough financial data.

153000
(04/03)

Taylor & Francis


Group plc

CRC Press LLC

They become a part of Informa in 2003 and we cannot find separate


financial statements.

818 /
57363
(06/00)

Taylor Nelson Sofres


plc
(Already found)
(Advertizing
monitoring)

Competitive Media
Reporting

http://www.tnsglobal.com/_assets/files/TNS_2000_Annual_Report.
pdf - they buy the leading advertising monitoring agency and gain
25% of the American market Overcapacity

894 /
101851
(11/01)

Taylor Nelson Sofres


plc
(Already found)
(Advertizing
monitoring)

TES/Rapid Chek Reporting http://www.tnsglobal.com/_assets/files/TNS_2001_Annual_Report.


pdf - they buy a niche company which track costumers behavior in
relation to usage of the cinema Product

66440

Tele1 Europe AS

ElTele Rogaland

Not enough financial data.

893 /
101509
(11/01)

Tele2 AB
(Already found)
(Telecommunication
services.)
Tele2 AB
(Already found)
(Telecommunication
services.)
Templeco 599 Ltd

FORA Telecom BV's


Russian operations

http://www.tele2.com/upload/files/annualreports/2001en.pdf - they
enter the Russian market as a result of their success in the Baltic
area - Market

Alpha Telecom (UK) Ltd

http://www.tele2.com/upload/files/annualreports/2003en.pdf - they
buy the largest telecommunication provider in the UK market
Overcapacity

Brown's Hotel Ltd

Not enough financial data.

920 /
150581
(02/03)
174283

949 /
265857
(11/04)

Trans-Siberian Gold plc Angarskaya


(TSG)
Proizvodstvennaya
(Gold mining service
Kompaniya AS OOO
holding company)

http://miranda.hemscott.com/ir/tsg/pdf/annualreports/annualreport20
04.pdf - they add a new area to their portfolio Overcapacity

190995

Travelodge Ltd

Thistle Islington

Not enough financial data.

78568

Tyco Electronics Ltd

Dorman Smith Holdings


Ltd

Cannot find any documentation regarding this deal.

92808
(06/01)

Tyco Flow Control


Holding (UK) Ltd
(Private company)
(Steel tube
manufacturer)

IMI plc's energy controls


businesses

Cannot find any information regarding this deal.

63719

Ufacex UK Holdings
plc

Cambridge Water plc

Not enough financial data.

884/ 91114
(06/01)

United Business Media


plc
(Already found)
(Business media
company)

Allison-Fisher
International Inc.

http://www.prnewswire.com/cgibin/stories.pl?ACCT=104&STORY=/www/story/08-032001/0001547962&EDATE= they gain a lot of new markets due


to this deal Geographic

890 /
95428
(09/01)

United Business Media


plc
(Already found)
(Business media
company)

Roper Starch Worldwide

http://www.prnewswire.com/cgibin/stories.pl?ACCT=104&STORY=/www/story/08-032001/0001547962&EDATE= they gain an increased position in


the US advertising monitoring market Geographic

833 /
64122
(07/00)

Vattenfall Oy
(Private company)
(Sells electricity and
heat to private
costumers)

Hmeenlinnan Energia Oy

http://www.vattenfall.com/www/vf_com/vf_com/Gemeinsame_Inha
lte/DOCUMENT/360168vatt/386239fina/2000-AnnualReport.pdf they double their district-heating sales and triple their gas sales in
the Finish market Overcapacity

59559

Vest-Wood A/S wood

Swedoor Group

Not listed renamed jeld wen in 2006

(04/00)

furniture manufacturer

138403
(11/02)

von Essen Hotels Ltd


hotel operator

Cliveden House Hotel

Not listed,
Not enough financial data available not included

821 /
57792
(03/00)

Warner Estate
Holdings plc (WNER)
property investment

Winglaw Group Ltd

Accounts on orbis not collected


http://www.propertymall.com/press/article/2595 - secured portfolio
with predominance in southeast geographic

936 /
209569
(12/03)

Wolseley plc
plumbing and
equipment wholesaler

Tobler Management
Holding AG

874 /
84127
(04/01)

Xenova Group plc


(XEN)
pharmaceuticals
manufacturer

Cantab Pharmaceuticals
plc

Accounts and quotes already collected


Zephyr: Acquisition of leader in Swiss market
http://www.secinfo.com/dV59z.1b.b.htm - in line with strategy to
expand geographic reach market
Delisted august 2005
http://boards.fool.co.uk/Message.asp?mid=6431398 - merger due to
need for consolidation in the industry. The enlarged group better
skills in product discovery and development skills R&D

933 /
202486
(04/00)

ssur HF (OSSR but


not before 04/01)
prosthetics
manufacturer

Flex-Foot Inc.

Not enough accounts available

No accounts before 2004, account from 1999-2003 can be collected


from - http://www.ossur.com/?PageID=7580
http://www.ossur.com/lisalib/getfile.aspx?itemid=6283 - FF is a
company of hi-tech products, the company is built on innovation
and technical skills. R&D

Appendix B: Total list of deals - Daily Stock Prices


Deal No

Acquiror name

Acquiror
country code

Target name

Target country All Deal values Accouncement


code
th EUR
data

Completion
data

Strategy

Listed or not
listed

853

75927 3i Group plc

GB

Bank Austria TFV High TechUnternehmens Beteiligung GmbH

AT

75,337.74

09.10.2000

09.10.2000

Market

18

56600 3i Group plc

GB

THE Technologieholding GmbH

DE

170,769.20

03.02.2000

03.02.2000

Product

646

GB

Aim Trust plc, The

GB

110,313.02

04.06.2003

29.07.2003

Overcapacity

190

181603 3PC Investment Trust plc


74022 Abbey National plc

GB

Scottish Provident Institution, The

GB

2,918,634.97

07.09.2000

01.08.2001

Market

406

97295 Abbot Group plc

GB

Deutsche Tiefbohr AG

DE

187,402.92

31.08.2001

02.10.2001

Overcapacity

223

76125 Aberdeen Asset Management plc

GB

Murray Johnstone Holdings Limited GB

248,115.55

11.10.2000

30.11.2000

Overcapacity

342

87992 Aberdeen Asset Management plc

GB

Gresham Unit Trust Management


Ltd

GB

139,176.15

12.04.2001

30.04.2001

Overcapacity

854

76862 Aberdeen Asset Management plc

GB

EquitiLink Group

AU / GB / US

86584.00

20.10.2000

22.12.2000

Market

586

144385 Aktieselskabet Damskibsselskabet DK


Svendborg

Dampskibsselskabet AF 1912 AS

DK

6,510,389.37

06.05.2003

16.06.2003

Overcapacity

756

267934 Aktiv Kapital ASA

Olympia Capital ASA

NO

178,645.79

30.07.2004

30.07.2004

Overcapacity

x
x

NO

877

86533 Alfred McAlpine plc

GB

Kennedy Utility Management Ltd

GB

84,843.65

22.03.2001

22.03.2001

Overcapacity

468

109636 Alfred McAlpine plc

GB

Stiell Ltd

GB

140,755.05

01.03.2002

01.03.2002

Product

GB

Interpharm Groep

NL

223,700.00

05.10.2000

09.11.2000

Market

218

75841 Alliance Unichem plc

446

104055 Alliance Unichem plc

GB

Dudley Taylor Holdings's 59


pharmacies

GB

108,523.42

12.12.2001

12.12.2001

Product

888

92905 Allied Domecq plc

GB

Buena Vista Winery Inc.

US

95,913.90

29.06.2001

31.12.2001

Geographic

407

97369 Allied Domecq plc

GB

Kuemmerling GmbH

DE

203,494.17

04.09.2001

04.09.2001

Market

266

79884 Allied Domecq plc

GB

GH Mumm & Compagnie

FR

575,000.00

13.12.2000

01.01.2001

Product

816

56693 Alphameric plc

GB

Pennine Retail Holdings Ltd

GB

98,360.70

18.02.2000

18.02.2000

Product

59424 Amec plc

GB

Agra Inc.

CA

443,632.57

16.02.2000

13.04.2000

Product

49
548
291

132439 Amer-yhtym Oyj


82131 Amvescap plc

FI

Precor Inc.

US

180,000.00

04.10.2002

01.11.2002

Product

GB

National Asset Management


Company

US

334,740.00

01.03.2001

19.04.2001

Product

76

62289 Anglo American plc

GB

Shell Coal Holdings Ltd

AU

955,616.90

31.05.2000

27.07.2000

Overcapacity

495

115159 Anglo American plc

GB

Compania Minera Disputada de Las CL


Condes Limitada

1,402,676.00

02.05.2002

13.11.2002

Overcapacity

687

212516 Anglo American plc

GB

Roman Bauernfeind Holding AG

344,000.00

10.12.2003

12.02.2004

Overcapacity

AT

867

80469 Anite Group plc

GB

Calculus Solutions Ltd

GB

80,647.20

21.12.2000

21.12.2000

Geographic

830

61549 Anite Group plc

GB

Datavance Group SAS

FR

82,333.30

30.05.2000

30.05.2000

Product

764

272920 ARM Holdings plc

GB

Artisan Components Inc.

US

675,802.60

23.08.2004

24.12.2004

R&D

11

55996 Arriva plc

GB

MTL Services plc

GB

138,852.50

24.01.2000

17.02.2000

Overcapacity

93

63768 Ashtead Group plc

GB

BET USA Inc.

US

542,372.90

21.04.2000

01.06.2000

Market

32

57721 Assa Abloy AB

SE

Yale locks business

GB

1,352,459.00

07.03.2000

31.08.2000

Geographic

440

103477 Assa Abloy AB

SE

Tesa Hardware

ES / MX

135,704.46

20.09.2001

28.11.2001

Market

242

77750 Assa Abloy AB

SE

Hughes Identification Devices

US

325,127.73

06.11.2000

06.11.2000

R&D

574

139861 Associated British Foods plc

GB

Novartis AG's food and beverage


business

CH

272,500.00

08.10.2002

29.11.2002

Overcapacity

709

230806 Associated British Foods plc

GB

Tone Brothers Inc.

US

1,109,835.00

22.07.2004

03.09.2004

Overcapacity

940

231208 Associated British Foods plc

GB

Unilever Group's Mexican food oils


and fats brands

MX

90420.00

09.03.2004

06.05.2004

Market

702

227241 Atlas Copco AB

SE

Ingersoll-Rand Drilling Solutions

BM / US

184,522.50

19.02.2004

13.10.2004

Product

315

85693 Autologic Holdings plc

GB

Axial Logistics Ltd

GB

124,121.96

27.03.2001

05.06.2001

Geographic

873

83961 Babcock International Group plc

GB

Hunting Defence Services

GB

94,189.60

15.02.2001

09.03.2001

Overcapacity

699

222553 Babcock International Group plc

GB

Peterhouse Group plc

GB

158,029.20

22.03.2004

18.06.2004

Product

919

148818 BAE Systems plc

GB

Mevatec Corporation

US

77,465.40

05.02.2003

24.03.2003

Product

732

252666 BAE Systems plc

GB

Alvis plc

GB

354,521.71 *

03.06.2004

23-09-2004

Product

435

102757 Bakkavr Group HF

IS

Katsouris (Fresh Foods) Ltd

GB

163,500.00

20.11.2001

18.12.2001

Product

199

74748 Balfour Beatty plc

GB

Adtranz's rail electrification and


traction power business

DE

153,000.00

20.09.2000

11.09.2000

Overcapacity

664

200275 Barclays Bank plc

GB

Gerrard Management Services Ltd GB

298,942.48

27.10.2003

17.12.2003

Overcapacity

181

73430 Barclays plc

GB

Woolwich plc

GB

9,344,480.80

11.08.2000

25.10.2000

Overcapacity

761

272148 Barclays plc

GB

Juniper Financial Corporation

US

220,394.60

18.08.2004

01.12.2004

Market

750

264293 BBA Group plc

GB

Aircraft Service International Group US


Inc.

160,529.39

11.05.2001

11.05.2001

Overcapacity

822

58114 BBA Group plc

GB

Oxford Aviation Holdings Ltd

90,819.70

01.03.2000

01.03.2000

Convergence

GB

416

99708 BG Group plc

GB

Enron Oil & Gas India Ltd

675

206909 BG Group plc

GB

El Paso Oil & Gas Canada Inc.

CA

280,385.28

16.02.2004

24.03.2004

Overcapacity

706

228610 BG Group plc

GB

Mauritania Holdings BV

NL

112,627.65

19.02.2004

31.03.2004

Overcapacity

GB

Rio Algom Ltd

CA

1,961,180.13

25.08.2000

29.11.2000

Overcapacity

180
270

73429 Billiton plc


80015 Bodycote International plc

IN

400,505.00

03.10.2001

14.02.2002

Overcapacity

GB

Lindberg Corporation

US

168,359.62

14.12.2000

18.01.2001

Overcapacity

631

170707 Boliden AB

SE

Outokumpu's mining and smelting


operations within zinc and copper

FI / IE / NL /
NO

849,000.00

08.09.2003

30.12.2003

Overcapacity

550

132620 Bookham Technology plc

GB

CA / CH / GB
/ US

110,980.80

07.10.2002

08.11.2002

Product

656

191548 Bookham Technology plc

US

GB

Nortel Networks Corporation's


Optical Transmitter and Receiver
and Optical Amplifier Businesses
New Focus Inc.

166,381.75

22.09.03

08.03.2004

R&D

35

57835 BP Amoco plc

GB

Burmah Castrol plc

GB

5,647,541.00

14.03.2000

10.07.2000

Overcapacity

866

80383 BP Amoco plc

GB

Solvay SA's polypropylene business BE

80000.00

19.12.2000

01.11.2001

Overcapacity

389

93388 BP plc

GB

Cairns Ltd

GB

126,345.60

06.07.2001

06.07.2001

Overcapacity

105

64533 BPB plc

GB

Celotex Corporation's wallboard


and ceiling tile businesses

US

367,021.30

01.06.2000

01.07.2000

Overcapacity

474

110622 BPB plc

GB

James Hardie Industries NV's US


wallboard businesses

US

386,331.00

13.03.2002

25.04.2002

Overcapacity

823

GB

M&J Seafoods (Wholesale) Ltd

GB

77,868.90

13.03.2000

20.03.2000

Product

607

157967 Brit Insurance Holdings plc

GB

PRI Group plc

GB

223,986.57

09.04.2003

19.06.2003

Overcapacity

776

286861 British Land Company plc, The

GB

Spirit Group Ltd's 65 pubs

GB

250,750.86

20.10.2004

20.10.2004

Geographic

328

86787 British Land Company plc, The

GB

22 Homebase Ltd do-it-yourself


stores

GB

249,079.36

25.03.2001

06.04.2001

Product

139

68888 British Sky Broadcasting Group plc GB

Sports Internet Group plc

GB

502,166.70

16.05.2000

02.10.2000

Convergence

724

58132 Brake Bros plc

GB

Groupe Pierre Le Goff

FR

236,000.00

10.05.2004

10.05.2004

Market

127

245974 Bunzl plc


66894 Cable & Wireless plc

GB

POP Point of Presence GmbH

DE

106,609.81

18.07.2000

26.07.2000

Product

420

100150 Cable & Wireless plc

GB

Exodus Communications Inc.'s


assets

US

855,450.00

30.11.2001

06.03.2002

Product

209

75516 Cadbury Schweppes plc

GB

Orangina Schweppes SAS

FR

700,000.00

21.09.2001

31.10.2001

Overcapacity

353

89232 Cadbury Schweppes plc

GB

La Casera SA

ES

117,000.00

24.07.2001

31.12.2001

Geographic

590

147961 Cadbury Schweppes plc

GB

Warner Lambert (Adams) de


Mexico

MX

4,000,000.00

01.04.2003

01.04.2003

Geographic

195

74592 Cadbury Schweppes plc

GB

Snapple Beverage Corporation

US

1,725,779.58

18.09.2000

26.10.2000

Product

477

111350 Cadbury Schweppes plc

GB

Pfizer Inc.'s Adams division

US

3,890,880.00

15.12.2002

31.05.2003

Product

488

113766 Cadbury Schweppes plc

GB

Dandy A/S

DK

312,673.48

27.06.2002

27.06.2002

Product

151

71243 Capita Group plc, The

GB

IRG plc

GB

169,491.50

12.04.2000

30.04.2000

Product

312

85525 Carli Gry International AS

DK

InWear Group AS

DK

174,716.98

12.03.2001

30.04.2001

Product

241

77644 Carlsberg A/S

DK

Feldschlsschen Getrnke Holding CH


AG

563,398.89

03.11.2000

28.11.2000

Market

883

90862 Carphone Warehouse Group plc

GB

Cellcom Ltd

GB

89,152.53

25.05.2001

25.05.2001

Product

x
x

561

136659 Carphone Warehouse Group plc

GB

Opal Telecommunications plc

GB

168,812.26

06.11.2002

06.11.2002

Product

909

134212 Cattles plc

GB

Associates Capital Corporation plc's GB


motor finance loan portfolio

89,472.96

17.10.2002

17.10.2002

Product

688,925.82

06.07.2000

22.08.2000

Overcapacity

173

73029 Centrica plc

GB

Direct Energy Marketing Ltd

CA

457

106601 Centrica plc

GB

Enbridge Services Inc.

CA

694,377.15

28.01.2002

07.05.2002

Overcapacity

487

113615 Centrica plc

GB

Central Power and Light Company

US

142,277.00

17.04.2002

24.12.2002

Overcapacity

720

242742 Centrica plc

GB

Bastrop Energy Partners LP

US

116,816.70

22.04.2004

02.06.2004

Overcapacity

562

137068 Centrica plc

GB

Dynegy Storage Ltd

GB

497,251.10

14.11.2002

14.11.2002

Product

735

254128 Centrica plc

GB

Killingholme Power Ltd's CCGT


GB
power station in North Lincolnshire.

212,255.11

08.06.2004

08.06.2004

Product

951

271186 Centrica plc

GB

Dyno-Rod plc

83,921.29

01.10.2004

01.10.2004

Product

885

91556 Centrica plc

GB

One.Tel plc

GB

96,713.12

03.07.2001

03.07.2001

Convergence

319

86043 CGNU plc

GB

Mebit Rt

HU

102,000.00

20.03.2001

20.03.2001

Market

372

91588 CGNU plc

GB

Fortis Australia Ltd

AU

185,088.90

14.06.2001

03.07.2001

Market

61060 CGU plc

GB

Norwich Union plc

GB

15,471,394.04

21.02.2000

30.05.2000

Overcapacity

79755 Close Brothers Group plc

GB

Transamerica Insurance Finance


Company (Europe)

GB / IE / NL /
US

155,008.49

11.12.2000

11.12.2000

Overcapacity

67
264
91
257
701
414

GB

63755 CMG plc

GB

Admiral plc

GB

2,372,881.40

03.04.2000

05.06.2000

Market

79408 Cobham plc

GB

BAE Systems Electronics Ltd's


Power & Control Business

GB

100,528.94

04.12.2000

29.12.2000

Product

GB

Prebon Group Ltd

GB

182,103.56 *

03.06.2004

13.10.2004

Overcapacity

DK

SSL International plc's incontinence GB


products unit

129,345.19

29.09.2001

29.09.2001

Market

224685 Collins Stewart Tullett plc


99355 Coloplast A/S

399

95544 Compass Group plc

GB

Crothall Services Group

US

186,592.00

07.08.2001

31.08.2001

Product

572

139390 Computacenter plc

GB

GE CompuNet (Germany) AG

DE

185,717.76

28.11.2002

02.11.2003

Geographic

61

60629 Cookson Group plc

GB

ACHEM Laminates

CN / TW

142,553.20

27.04.2000

30.06.2000

Market

52

59531 Dairy Crest Group plc

GB

Unigate plc's dairy and cheese


business

GB

398,305.10

27.04.2000

19.07.2000

Overcapacity

544

131786 Dairy Crest Group plc

GB

Uniq's St Ivel Spreads business

GB

136,754.19

29.09.2002

01.11.2002

Product

899

115331 Danisco A/S

DK

Perlarom SA

BE

80,703.40

07.05.2002

07.05.2002

Overcapacity

400

96156 Danisco A/S

DK

Germantown International Ltd

AU

109,560.00

15.08.2001

15.08.2001

Market

682

211101 Danisco A/S

DK

Rhodia SA's food additives division FR

320,000.00

05.02.2004

01.06.2004

Product

479

111469 Davis Service Group plc, The

GB

Sophus Berendsen A/S

DK

689,710.52

22.03.2202

24.05.2002

Market

GB

93,435.73

06.12.2000

31.01.2001

Market

863

79541 De Vere Group plc

GB

Cavendish Hotel - London

354

89335 Dimension Data Holdings plc

GB

Proxicom Inc.

US

519,948.80

07.05.2001

15.06.2001

Product

323

86475 Dimension Data Holdings plc

GB

Premier Systems Integrators LLC

US

154,808.40

19.03.2001

31.12.2001

R&D

579

142326 DnB Holding ASA

NO

Nordlandsbanken ASA

NO

134,064.13

20.12.2002

14.03.2003

Overcapacity

612

159484 DnB Holding ASA

NO

Gjensidige Nor ASA

NO

2,239,699.50

18.03.2003

04.12.2003

Overcapacity

708

230006 DS Smith plc

GB

Linpac Containers Ltd

GB

253,737.86

31.03.2004

22.03.2004

Market

197

74617 DSV De Sammensluttede


Vognmaend AF 13-7 1976 A/S

DK

DFDS Dan Transport

DK

737,581.80

18.09.2000

31.09.2000

Market

385

92550 Easynet Group plc

GB

Ipsaris Ltd

GB

604,189.67

27.06.2001

05.07.2001

Product

403

96385 EDB Business Partner ASA

NO

Fellesdata AS

NO

306,642.27

24.02.2000

01.04.2000

Product

803

344772 Elcoteq Network Oyj

251

78501 Electrolux AB

494

114924 Electrolux AB

FI

Tellabs Oy's manufacturing


operations in Espoo

FI

SE

Email Ltd's household appliance


making unit

AU

100,000.00 *

15.11.2003

31.12.2003

Product

293,154.62

20.11.2000

26.02.2001

Overcapacity

SE

Diamant Boart International

BE

187,029.28

02.05.2002

02.07.2002

Product

313

85573 Eniro AB

SE

Panorama Polska

PL

134,967.27

12.03.2001

31.05.2001

Overcapacity

388

92848 Eniro AB

SE

Direktia Ltd

FI

100,912.76

03.09.2001

10.09.2001

Geographic

77

62786 Enterprise Inns plc

GB

Swallow's Inns and Restaurants

GB

198,333.30

16.05.2000

11.07.2000

Geographic

363

90099 Enterprise Inns plc

GB

Morgan Grenfell Private Equity's


439 pubs

GB

424,953.43

22.05.2001

12.06.2001

Geographic

379

92117 Enterprise Inns plc

GB

Scottish & Newcastle plc's 432


pubs

GB

446,118.76

18.06.2001

05.07.2001

Geographic

484

113219 Enterprise Inns plc

GB

Laurel Pub Group Ltd

GB

1,381,619.14

12.04.2002

24.05.2002

Geographic

627

168293 Enterprise Inns plc

GB

Unique Pub Company plc

GB

3,463,289.21

12.03.2004

31.03.2004

Geographic

954

281370 Erinaceous Group plc

GB

Hercules Property Services plc

GB

97,644.38

27.09.2004

22.10.2004

Overcapacity

736

255599 Exel plc

GB

Tibbett & Britten Group plc

GB

482,628.57

16.06.2004

28.09.2004

Overcapacity

316

85885 Exel plc

GB

FX Coughlin Group

US

364,498.53 *

15.03.2001

17.04.2001

Geographic

608

158234 Express Dairies plc

GB

Arla Foods plc

GB

166,850.99

27.03.2003

22.10.2003

Overcapacity

467

108558 Fastighets AB Tornet

SE

Amplion Fastigheter AB

SE

114,570.22

18.02.2002

01.03.2002

Geographic

422

100796 Fenner plc

GB

Unipoly Enerka Holdings UK Ltd

GB

131,194.33

22.10.2001

30.11.2001

Product

849

74989 Finnveden AB

SE

Bulten AB

SE

97,194.10

21.09.2000

17.11.2000

Market

814

56295 First Choice Holidays plc

GB

Holiday Hypermarkets (1998) Ltd

GB

76,393.40

15.12.1999

01.02.2000

Product

137

68362 Fortum Oyj

FI

Stora Enso Oyj's power assets

FI

1,811,428.60

27.01.2000

05.06.2000

Overcapacity

396

95183 George Wimpey plc

GB

Alfred McAlpine Homes Holdings


Ltd

GB

739,599.51

14.08.2001

01.10.2001

Market

375

91691 George Wimpey plc

GB

Laing Homes Ltd

GB

469,549.05

16.10.2002

01.11.2002

Product

604

154492 Getinge AB

SE

Siemens Medical Solutions's Life


Support Systems business unit

SE

180,000.00

15.08.2003

09.10.2003

Overcapacity

857

78408 Getinge AB

SE

Maquet AG

DE

91000.00

17.11.2000

01.01.2001

Convergence

848

73204 GKN plc

GB

Nissan Motor Co., Ltd's drive shaft


operations

JP

94,482.88

06.08.2000

01.11.2000

Product

136

68143 Glaxo Wellcome plc

GB

Smithkline Beecham plc

GB

69,635,433.09

17.01.2000

27.12.2000

Geographic

217

75802 GN Store Nord A/S

DK

Hello Direct Inc.

US

109,696.50

05.10.2000

24.04.2001

Geographic

408

97739 Greene King plc

GB

Old English Inns plc

GB

164,966.44

07.09.2001

24.10.2001

Geographic

466

108477 Greene King plc

GB

Morrells of Oxford Ltd

GB

104,975.59

18.06.2002

18.06.2002

Geographic

554

133538 Greene King plc

GB

Laurel Pub Company Ltd's 432


pubs

GB

989,350.97

08.07.2004

06.08.2004

Geographic

159

72307 Gunnebo AB

SE

Chubb Safes Group

GB

140,019.54

10.08.2000

01.09.2000

Overcapacity

352

89200 Gyrus Group plc

GB

Richards

US

108,912.30

04.05.2001

05.06.2001

Geographic

571

138459 H Lundbeck A/S

DK

Synaptic Pharmaceutical
Corporation

US

110,412.50

21.11.2002

06.03.2003

R&D

359

89435 Hafslund ASA

NO

Viken Energinett AS

NO

413,125.08

13.07.2001

20.03.2002

Product

298

83105 Halifax Group plc

GB

Equitable Life Assurance Society's


non-profit and unit-linked business,
operating assets and sales force
Bank of Scotland (Governor & Co
of)

GB

1,583,906.85

05.02.2001

01.03.2001

Overcapacity

15,799,960.39

04.05.2001

10.09.2001

Overcapacity

Bank One Corporation's British


credit card business

GB

360,260.28

22.06.2000

22.06.2000

Convergence

BE

346

88443 Halifax Group plc

GB

114

65490 Halifax plc

GB

908

133776 Halma plc

GB

Bureau D'Electronique Appliquee


SA

914

142772 Hammerson plc

GB

RT Group Developments Ltd

542

129734 Hammerson plc

GB

Grantchester Holdings plc

GB

95000.00

16.10.2002

16.10.2002

R&D

92,534.05

27.12.2002

28.02.2003

Overcapacity

305,306.12

09.09.2002

21.10.2002

Product

827

60215 Harvey Nash Group plc

GB

TechPartners International Limited

GB / US

82,366.78

25.04.2000

25.04.2000

Market

841

68050 Hays plc

GB

EPS Ltd

GB

89,532.80

21.01.2000

21.01.2000

Geographic

252

78517 Hexagon AB

SE

Brown & Sharpe Manufacturing


Company's metrology business

US

202,338.00

17.11.2000

30.04.2001

Convergence

837

66079 Highbury House Communications


plc

GB

Columbus Group plc's magazines


division

GB

80,645.20

26.06.2000

03.08.2000

Overcapacity

296

83065 Hit Entertainment plc

GB

Lyrick Corporation

US

294,332.50

09.02.2001

06.03.2001

Market

504

117729 Hit Entertainment plc

GB

Gullane Entertainment plc

GB

321,076.61

25.06.2002

03.09.2002

Product

132

67501 Holmen AB

SE

Papelera Peninsular SA

ES

244,042.60

06.04.2000

13.07.2000

Overcapacity

153

71994 Homestyle Group plc

GB

Harveys Furnishing plc

GB

233,806.72

14.07.2000

27.10.2000

Overcapacity

320

86268 HSBC Holdings plc

GB

Demirbank TAS

TR

386,960.00

20.07.2001

30.10.2001

Overcapacity

643

181176 HSBC Holdings plc

GB

Bank of Bermuda Ltd

BM

28.10.2003

18.02.2004

Geographic

1,012,830.00 *
564

137324 HSBC Holdings plc

GB

Household International Inc.

US

13,154,880.00

14.11.2002

31.03.2003

Market

642

180215 HSBC Holdings plc

GB

Losango Promotora de Vendas


Ltda

BR

696,900.19

17.07.2003

08.12.2003

Market

762

272533 HSBC Holdings plc

GB

Valeu Promotora de Vendas Ltda

BR

105,439.37

19.08.2004

30.09.2004

Market

913

142545 HSBC Holdings plc

GB

Keppel Insurance Pte Ltd

SG

81,998.40

20.12.2002

18.02.2003

product

747

262630 HSBC Holdings plc

2,877,941.92

12.07.2004

09.11.2004

Convergence

187,798.77

02.10.2000

02.10.2000

Overcapacity

210

75532 Huhtamaki Van Leer Oyj

GB

Marks and Spencer Retail Financial GB


Services Holdings Ltd

FI

Packaging Resources Inc.

US

470

109902 ICAP plc

GB

First Brokers Securities Inc.

US

125,831.79

04.03.2002

30.04.2002

Overcapacity

528

126434 ICAP plc

GB

BrokerTec Global LLC's trading


operations

US

255,990.70

05.08.2002

07.05.2003

Product

DK

Eicon Technology Corporation

CA

128,529.52

12.10.2000

08.11.2000

Product

227

76413 i-data International A/S

846

72616 Incepta Group plc

GB

Cunningham Communication Inc.

US

83,084.08

26.07.2000

24.08.2000

Overcapacity

707

229807 Informa Group plc

GB

Taylor & Francis Group plc

GB

849,415.60

02.03.2004

10.05.2004

Geographic

GB

Huon Holdings Ltd

AU

295,506.56

17.05.2001

17.06.2001

Market

303

84326 Innovation Group plc, The

253

78533 Intec Telecom Systems plc

GB

Computer Generation Inc.

US

274,841.00

21.11.2000

31.12.2001

Product

201

75240 Intercare Group plc, The

GB

Macarthy Group Ltd

GB

141,559.41

27.09.2000

20.10.2000

Product

373

91626 International Power plc

GB

Rugeley Power Station

GB

328,732.90

11.06.2001

13.07.2001

Overcapacity

148

70318 Invensys plc

GB

Baan Company NV

NL

762,000.00

31.05.2000

30.08.2000

Product

GB

Foreign & Colonial Investment Trust GB


plc

02.07.2004

11.10.2004

Product

744

260304 ISIS Asset Management plc

1,246,669.12 *

641

180111 iSOFT Group plc

GB

Torex plc

GB

489,845.05

25.09.2003

23.01.2004

Market

478

111381 ITV plc

GB

Carlton Communications plc

GB

2,121,803.49

08.12.2002

02.02.2004

Geographic

684

211463 ITV plc

GB

Granada plc

GB

5,048,428.99

08.12.2002

31.01.2004

Geographic

60237 John Mansfield Group plc

GB

Rexam plc's printing division

GB

144,067.80

04.04.2000

30.04.2000

Convergence

162

58

72605 John Menzies plc

GB

Ogden Aviation Services

US

123,071.87

25.07.2000

20.11.2000

Product

381

92276 Johnson Matthey plc

GB

Meconic plc

GB

234,993.45

21.06.2001

09.08.2001

Market

509

118545 Johnson Matthey plc

47

59185 Johnson Service Group plc

GB

Synetix Ltd

GB

411,053.04

23.09.2002

01.11.2002

Product

GB

Semara Holdings plc

GB

160,339.00

28.01.2000

20.04.2000

Overcapacity

473

110518 Johnston Press plc

GB

Regional Independent Media


Holdings Ltd

GB

910,285.38

12.03.2002

12.03.2002

Overcapacity

693

215348 Kauping banki HF

IS

FI-Holding A/S

DK

980,136.73

14.06.2004

29.09.2004

Geographic

447

104275 Kemira Oyj

FI

Vinings Industries

US

160,839.00

17.12.2001

31.01.2002

Market

GB

277

28 non-trading store development


sites

GB

349,566.61

22.12.2000

22.12.2000

Market

790

298310 Kingston Communications (Hull) plc GB

80544 Kingfisher plc

Omnetica Ltd

GB

238,624.61

30.11.2004

31.12.2004

R&D

911

141630 Kyro Oyj Abp

FI

Glasto Holding BV

NL

76000.00

13.12.2002

20.01.2003

Overcapacity

176

73265 Laird Group plc, The

GB

Instrument Specialities Co Inc

US

336,362.63

07.08.2000

26.08.2000

Convergence

240

77639 Land Securities plc

GB

Trillium Investments GP Ltd

GB

520,668.98

02.11.2000

09.01.2001

Product

871
9

83393 Land Securities plc

GB

Whitecliff Properties Ltd

GB

97,633.53

17.02.2001

17.04.2001

Product

55556 Lassila & Tikanoja Oyj

FI

WM Ymparistopalvelut Oy

FI

101,000.00

31.01.2000

28.04.2000

Overcapacity

160

72333 Lastminute.com plc

GB

Degriftour Group

FR

101,682.13

14.08.2000

23.10.2000

Market

305

84688 Lex Service plc

GB

Auto Windscreens Ltd

GB

183,784.18

30.03.2001

30.03.2001

Product

917

146167 LGP Telecom Holding AB

SE

Allgon AB

SE

83,093.75

21.01.2003

18.04.2003

R&D

565

137442 Liberty International plc

GB

Victoria Centre Partnership, The

GB

320,339.69

09.11.2002

09.11.2002

Geographic

442

103779 Lloyds TSB Group plc

GB

First National Vehicle Holdings Ltd

GB

725,446.31

18.04.2002

18.04.2002

Overcapacity

644

181230 Lloyds TSB Group plc

GB

Goldfish Bank Ltd's credit card and GB


personal loan businesses

159,340.00

01.08.2003

31.12.2003

Product

355

89385 Logica plc

GB

CMG plc

GB

738,159.67

05.11.2001

30.12.2002

Geographic

215

75769 Logica plc

GB

pdv Unternehmensberatung GmbH DE

623,227.72

05.11.2000

22.11.2000

Market

GB

Northern Leisure plc

GB

850,833.30

16.05.2000

11.07.2000

Product

553

79

133410 Man Group plc

GB

GNI Holdings Ltd

GB

156,307.64

21.10.2002

06.11.2002

Overcapacity

502

117345 Man Group plc

GB

RMF Investment Group

CH

889,227.50

23.05.2002

31.05.2002

Product

749

263872 Marks & Spencer Group plc

GB

Per Una

GB

181,524.26

13.07.2004

05.10.2004

Product

GB

Exchange FS Group plc

GB

141,732.74

19.09.2001

05.11.2001

Product

412

62793 Luminar plc

98515 Marlborough Stirling plc

184

73693 Marylebone Warwick Balfour Group GB


plc

Malmaison Hotel Ltd's properties


and business

GB

103,291.83

31.08.2000

10.09.2002

Geographic

955

282256 Marylebone Warwick Balfour Group GB


plc

Hotel du Vin Ltd

GB

96,282.39

04.10.2004

04.10.2004

Geographic

734

253651 Meggitt plc

Dunlop Standard Aerospace Group GB


Ltd's Design & Manufacturing
businesses

605,576.28

05.07.2004

25.08.2004

Product

GB

117

65860 Metso Oyj

FI

Svedala Industri AB

SE

1,649,578.80

21.06.2000

11.09.2001

Geographic

120

66406 Mets-Serla Oy

FI

MoDo Paper AB

SE

1,600,000.00

01.06.2000

09.08.2000

Overcapacity

225

76314 Miller Group Ltd

GB

Birch

GB

102,122.82

11.10.2000

11.10.2000

Market

382

92282 Misys plc

GB

DBS Management plc

GB

123,274.84

19.06.2001

13.07.2001

Product

383

92370 Misys plc

GB

Sunquest Information Systems Inc. US


(Old)

462,095.20

25.06.2001

30.07.2001

Product

GB

Parkman Group plc

GB

112,958.88

21.08.2003

17.10.2003

Overcapacity

648

185773 Mouchel plc

245

78147 Narvesen ASA

NO

REMA 1000 Norge AS

NO

613,845.31

07.11.2000

20.04.2001

Overcapacity

156

72164 National Express Group plc

GB

Prism Rail plc

GB

259,664.76

18.07.2000

17.01.2001

Overcapacity

512

120023 National Express Group plc

GB

Stock Transportation Ltd

CA

112,634.20

17.06.2002

09.07.2002

Market

55045 National Express Group plc

GB

ATC Group

US

174,590.20

04.01.2000

14.01.2000

Product

84

63092 National Express Group plc

GB

School Services & Leasing Inc.

US

227,833.30

31.05.2000

31.08.2000

Product

188

73897 National Grid Group plc, The

GB

Niagara Mohawk Holdings Inc.

US

10,372,950.00

05.09.2000

31.01.2002

Overcapacity

489

114017 National Grid Group plc, The

GB

Lattice Group plc

GB

10,304,081.63

22.04.2002

21.10.2002

Overcapacity

397

95336 Nestor Healthcare Group plc

GB

HCMS Ltd

GB

176,994.95

02.08.2001

14.09.2001

Product

231

76938 NewMedia SPARK plc

GB

Internet Indirect plc

GB

131,964.92

20.10.2000

15.12.2000

Overcapacity

25

57359 NewMedia SPARK plc

GB

Cell Internet Commerce


Development AB

SE

139,344.30

06.03.2000

06.03.2000

Product

SE

Gower Group Ltd

GB

98,349.64

01.12.2003

01.12.2003

Product

935

209562 Nobia AB

158

72200 Nokia Oyj

FI

DiscoveryCom Inc

US

245,207.31

08.08.2000

31.08.2000

Product

261

79551 Nokia Oyj

FI

Ramp Networks Inc.

US

134,152.20

07.12.2000

22.01.2001

Product

395

95018 Nokia Oyj

FI

Amber Networks

US

462,763.20

26.07.2001

29.08.2001

R&D

19

56655 Nokia Oyj

FI

Network Alchemy Inc.

US

341,836.70

01.02.2000

06.03.2000

Convergence

GB

Leapfrog Day Nurseries plc

GB

89,739.79

30.04.2004

30.06.2004

Overcapacity

945

244808 NordAnglia Education plc

394

94948 Nordbanken AB

SE

Postgirot Bank AB

SE

435,740.86

31.07.2001

09.11.2001

Product

300

83353 Norsk Hydro ASA

NO

VAW Aluminium AG

DE

3,095,000.00

07.01.2001

15.03.2002

Overcapacity

536

127971 Norsk Hydro ASA

NO

Technal SA

FR

116,000.00

01.12.2001

31.01.2002

Market

135

67661 Norske Skogindustrier ASA

NO

Fletcher Challenge Paper Ltd

NZ

2,659,574.50

03.04.2000

28.07.2000

Overcapacity

366

90456 Norske Skogindustrier ASA

NO

Walsum paper mill

DE

1,088,444.80

29.05.2001

30.11.2001

Market

518

122409 Northern Rock plc

686

212152 Northgate Information Solutions plc GB

3
233
419

GB

Legal & General Bank Ltd

GB

209,673.76

04.07.2002

01.08.2002

Overcapacity

Rebus HR Group

GB

221,917.95

17.12.2003

23.01.2004

Product

GB

120,983.60

28.01.2000

26.04.2000

Overcapacity

54979 NSB Retail Systems plc

GB

Real Time Control plc

76994 NSB Retail Systems plc

GB

STS Systems

CA

428,923.46

22.10.2000

29.12.2000

Market

SE

Bacon's Information Inc.

US

101,349.00

14.11.2001

29.11.2001

Market

100092 Observer AB

310

85334 Odfjell ASA

NO

West Delta

186

73797 Odfjell ASA

NO

Seachem

113

65473 Old Mutual PLC

GB

United Asset Management


Corporation

143

69467 Old Mutual PLC

GB

Gerrard Group plc

348

88777 Old Mutual PLC

GB

Fidelity and Guaranty Life Insurance US


Company

698,119.00

26.04.2001

28.09.2001

Market

517

121868 Outokumpu Oyj

FI

AvestaPolarit Oyj Abp

FI

555,000.00

01.07.2002

15.08.2002

Overcapacity

216

75782 Outokumpu Oyj

FI

Norzink AS

NO

201,402.00

05.10.2000

24.04.2001

Product

207

75324 Outokumpu Steel Oyj

FI

Avesta Sheffield AB

SE

1,362,167.30

28.09.2000

23.01.2001

Overcapacity

819

57591 Pandox AB

SE

Hotellus International

SE

89,471.97

08.02.2000

31.03.2000

Market

GB

Bon Marche Group Ltd

GB

116,670.60

03.07.2002

19.07.2002

Product

511

119958 Peacock Group plc, The

NO

117,667.00

02.03.2001

02.03.2001

Product

123,615.81
US

2,567,085.11

01.09.2000

31.12.2000

Convergence

20.06.2000

25.08.2000

Geographic

860,655.70

18.01.2000

16.05.2000

Market

43

58540 Pearson plc

GB

Dorling Kindersley Holdings plc

GB

509,836.10

31.03.2000

13.06.2000

Product

164

72702 Pearson plc

GB

National Computer Systems Inc.

US

2,758,662.27

31.07.2000

08.09.2000

Convergence

30

57549 Pendragon plc

GB

Lex Service plc's 32's franchised


car dealerships and 4 bodycentres

GB

155,737.70

08.03.2000

08.03.2000

Overcapacity

696

218611 Pendragon plc

GB

CD Bramall plc

GB

338,798.74

23.01.2004

16.03.2004

Overcapacity

287

81721 Persimmon plc

GB

Beazer Group plc

GB

871,104.92

24.01.2001

11.04.2001

Overcapacity

82073 ProSafe ASA

NO

Nortrans Offshore Ltd

BM / SG

223,966.34

22.01.2001

22.01.2001

Product

GB

Yes Car Credit Ltd

GB

219,045.53

18.12.2002

31.12.2002

Convergence

82283 Prudential plc

GB

Orico Life Insurance Co. Ltd

JP

207,846.95

23.01.2001

31.12.2001

Market

71941 Psion plc

GB

Teklogix International Inc.

CA

407,109.57

12.07.2000

20.09.2000

Product

Wembley (London) Ltd

GB

76,394.16

07.08.2002

07.08.2002

Product

290
460
293
152
903

107336 Provident Financial plc

126652 Quintain Estates and Development GB


plc

138

68876 QXL.com plc

GB

Bidlet AB

SE

568,852.50

27.03.2000

30.06.2000

Market

907

132688 Ramirent Oyj

FI

Altima AB

SE

87,434.40

10.12.2003

23.01.2004

Overcapacity

540

128804 Ramirent Oyj

FI

Bautas Maskinutleie ASA

NO

120,791.17

29.08.2002

30.09.2002

Market

665

201075 Randgold Resources Ltd

GB

Ashanti Goldfields Co., Ltd

GH

1,756,953.85

23.09.2003

23.09.2003

Overcapacity

GB

Mosquito Coil Group

ID

76,742.05

24.11.2000

24.11.2000

Market

GB

HQ Global Holdings Inc.

US

249,857.40

16.07.2004

20.08.2004

Market

861
753

78756 Reckitt Benckiser plc


266052 Regus Group plc

842

70102 Reuters Group plc

GB

Yankee Group Research Inc.

US

80,555.60

09.05.2000

05.06.2000

Overcapacity

327

86772 Reuters Group plc

GB

Bridge Information Systems Inc.

US

410,076.20

30.04.2001

28.09.2001

Market

596

150860 Reuters Group plc

GB

Multex.com Inc.

US

183,046.50

18.02.2003

26.03.2003

Convergence

552

133391 Rexam plc

GB

Nienburger Glas GmbH

DE

106,175.44

14.10.2002

29.11.2002

Overcapacity

140

69028 Rexam plc

GB

American National Can Group Inc.

US

2,091,525.40

02.04.2000

24.07.2000

Product

445

104015 Rexam plc

GB

Crown Cork & Seal Company Inc's US


beauty pumps business

121,600.80

13.12.2001

22.01.2002

Product

630

170514 Rexam plc

GB

Risdon Pharma SA

FR

125,000.00

04.06.2003

05.08.2003

Product

174

73101 Rio Tinto plc

GB

North Ltd

AU

1,835,121.05

03.08.2000

10.10.2000

Overcapacity

179

73381 Rio Tinto plc

GB

Ashton Mining Ltd

AU

364,336.35

28.08.2000

06.11.2000

Overcapacity

246

78168 Rio Tinto plc

GB

Ashton Mining Ltd

AU

421,621.20

10.11.2000

22.01.2001

Product

146

70148 Robotic Technology Systems plc

GB

Wright Industries Inc.

US

102,018.19 *

19.04.2000

17.05.2000

Geographic

66262 Rodime plc

GB

Littlewoods Leisure Ltd

GB

259,677.40

27.06.2000

27.06.2000

Convergence

GB

Expo Communications Ltd

GB

84,683.42

30.06.2004

28.07.2004

Product

118
941

232499 Roshni Investments plc

606

156106 Royal Bank of Scotland Group plc, GB


The

Churchill Insurance Group plc

GB

1,580,132.55

11.06.2003

01.09.2003

Overcapacity

626

166833 Royal Bank of Scotland Group plc, GB


The

Santander Direkt Bank AG's credit DE


card and personal loans operations

486,000.00

14.05.2003

31.07.2003

Overcapacity

757

269320 Royal Bank of Scotland Group plc, GB


The

Lynk Systems Inc.

431,970.00

04.08.2004

16.09.2004

Overcapacity

31.01.2000

11.02.2000

Geographic

38,907,961.39
887,000.00*

06.10.2003

05.01.2004

Geographic

126

66734 Royal Bank of Scotland Group plc, GB


The

652

188685 Royal Bank of Scotland Group plc, GB


The

US

National Westminster Bank plc

GB

First Active plc

IE

362

90091 Royal Bank of Scotland Group plc, GB


The

108,088.34

14.08.2001

24.09.2001

Market

623

165309 Royal Bank of Scotland Group plc, GB


The

Nordisk Renting AB

SE

104,000.00

07.05.2003

02.06.2003

Convergence

928

179240 Sage Group plc, The

Timberline Software Corporation

US

86,694.30

17.07.2003

22.09.2003

Overcapacity

926

175108 Sage Group plc, The

GB

Softline Ltd

ZA

94,813.14

01.08.2003

14.11.2003

Market

20

56704 Sage Group plc, The

GB

Best Software Inc.

US

445,901.60

12.01.2000

22.02.2000

Product

330

86837 Sage Group plc, The

GB

Interact Commerce Corporation

US

316,093.80

28.03.2001

02.05.2001

Product

GB

Euro Sales Finance plc

828
497

60242 Sanctuary Group plc, The

Castle Music Publishing Ltd

GB

75,409.80

30.03.2000

05.05.2000

Overcapacity

SE

Valenite Inc.

US

187,998.65

18.06.2002

09.08.2002

Geographic

391

94436 SanomaWSOY Oyj

FI

VNU NV's consumer magazine


publishing business

NL

1,206,000.00

20.07.2001

20.07.2001

Market

129

67122 Sapa AB (Old)

SE

Anodizing Inc.

US

122,235.80

01.08.2000

01.09.2000

Geographic

538
133

115382 Sandvik AB

GB

128131 SAS Group


67568 Schroders plc

SE

Braathens ASA

NO

110,560.75

19.08.2002

11.02.2002

Market

GB

Liberty International Pensions Ltd

GB

100,000.00

10.05.2000

27.07.2000

Product

GB

205,333.82

30.07.2004

30.07.2004

Overcapacity

469

109782 Scottish & Southern Energy plc

GB

Ferrybridge power station

659

194680 Scottish & Southern Energy plc

GB

Medway Power Ltd

GB

284,489.15

06.10.2003

07.11.2003

Overcapacity

672

206029 Scottish & Southern Energy plc

GB

Atlantic Electric & Gas Ltd

GB

136,188.19

28.04.2004

28.04.2004

Overcapacity

722

245372 Scottish & Southern Energy plc

GB

Atlantic Electricity and Gas Ltd

GB

134,548.24

04.05.2004

04.05.2004

Overcapacity

177

73272 Scottish & Southern Energy plc

GB

SWALEC

GB

357,214.97

07.08.2000

31.10.2000

Geographic

524

125922 Scottish & Southern Energy plc

GB

Dynegy Hornsea Ltd

GB

205,260.22

30.09.2002

30.09.2002

Product

534

127460 Scottish Power plc

GB

Damhead Creek power station

GB

476,374.72 *

02.06.2004

02.06.2004

Geographic

281

80727 Scottish Power plc

GB

Rye House Power Station

GB

335,931.00

22.12.2000

08.03.2001

Market

387

92727 Serco Group plc

GB

AEA Technology plc's consulting


division

GB

123,531.41

29.06.2001

10.09.2001

R&D

106

64634 Severn Trent plc

GB

UK Waste Management Ltd

GB

612,903.20

05.06.2000

30.09.2000

Overcapacity

57790 Shanks Group plc

GB

Waste Management Nederland BV NL

340,491.80

26.01.2000

10.03.2000

Market

79724 Shire Pharmaceuticals Group plc

GB

BioChem Pharma Inc.

CA

4,563,200.00

11.12.2000

11.05.2000

R&D

34
262
711

232456 SF HF

IS

Financire de Kiel SAS

FR

332,300.00 *

29.10.2004

04.12.2004

Geographic

800

318891 SF HF

IS

Labeyrie SA

FR

328,302.26

25.10.2004

26.10.2004

Geographic

104

64526 Signet Group plc

GB

Marks & Morgan

US

170,212.80

01.06.2000

31.07.2000

Market

183

73492 Skanska AB

SE

Kvaerner Construction Group


Limited

GB

579,944.02

29.08.2000

02.11.2000

Overcapacity

94

63776 Skanska AB

SE

Selmer AS

NO

282,398.79

13.04.2000

09.06.2000

Market

882

90717 Smith & Nephew plc

GB

Westaim Biomedical Corp's US


and Canadian Burns Dressing
Business

US

82,169.02

09.05.2001

09.05.2001

Product

463

108143 Smith & Nephew plc

GB

Oratec Interventions Inc

US

353,524.00

14.02.2002

22.03.2002

R&D

712

232846 Smith & Nephew plc

GB

Midland Medical Technologies Ltd

GB

147,364.65

12.03.2004

05.05.2004

R&D

85684 Smiths Group plc

GB

Barringer Technologies Inc.

US

99,934.08

09.03.2001

11.05.2001

Product

875
547

131989 Smiths Group plc

GB

Heimann Systems GmbH

DE

367,921.53

01.10.2001

02.12.2002

Product

956

287296 Smiths Group plc

GB

Integrated Aerospace Inc.

US

84117.00

19.10.2004

24.11.2004

Product

942

233226 Smiths Group plc

GB

Dynamic Gunver Technologies LLC US

85,445.40

15.03.2004

04.05.2004

R&D

944

242958 Smiths Group plc

GB

TRAK Communications Inc

US

94329.00

26.04.2004

26.04.2004

R&D

31

57594 Smiths Industries plc

GB

Marconi Actuation Systems Inc.

US

103,278.70

22.02.2000

08.03.2000

Product

196

74608 Smiths Industries plc

GB

TI Group plc

GB

3,118,666.23

18.09.2000

04.12.2000

Product

202

75271 Smiths Industries plc

GB

Fairchild Defense

US

118,063.75

27.09.2000

30.10.2000

Product

GB

Miller Brewing Company

US

5,653,760.00

30.05.2002

09.07.2002

Market

475

111154 South African Breweries plc

521

124038 Spectris plc

GB

Philips Analytical BV

NL

150,000.00

17.07.2002

18.09.2002

Product

191

74287 Spirent plc

GB

Zarak Systems Corporation

US

470,221.78

07.09.2000

01.08.2001

Product

249

78378 Spirent plc

GB

Hekimian Laboratories Inc.

US

1,760,062.50

16.11.2000

19.12.2000

Product

777
393
752

287356 Sportingbet plc


94924 Sportingbet.com (UK) plc

Paradisepoker

CR

336,191.72

28.10.2004

03.11.2004

Product

SportsBook.com

US

232,682.40

27.07.2001

27.07.2001

Market

GB

PrimeCredit (Asia) Ltd

HK

103,974.41

30.06.2004

30.06.2004

Market

73923 Standard Chartered plc

GB

Chase Manhattan Card Company


Limited

HK

1,545,667.45

01.09.2000

31.10.2000

Market

63697 Stora Enso Oyj

FI

Consolidated Papers Inc.

US

5,025,510.20

22.02.2000

01.09.2000

Overcapacity

273

80327 Svenska Handelsbanken AB

SE

SPP Livfrskring AB

SE

820,727.14

20.12.2000

20.02.2001

Overcapacity

338

87684 Svenska Handelsbanken AB

SE

Midtbank A/S

DK

280,694.24

11.04.2001

17.05.2001

Overcapacity

GB

McNeil Nutritionals' Alabama-based US


sucralose manufacturing plant

111,863.20

19.02.2004

30.04.2004

Geographic

189
88

703

265606 Standard Chartered Bank plc

GB
GB

227705 Tate & Lyle plc

818

57363 Taylor Nelson Sofres plc

GB

Competitive Media Reporting

US

91,666.70

09.10.2000

09.10.2000

Overcapacity

587

145100 Taylor Nelson Sofres plc

GB

NFO WorldGroup Inc.

US

382,365.00

14.05.2003

11.07.2003

Market

894

101851 Taylor Nelson Sofres plc

GB

TES/Rapid Chek Reporting

US

84,105.30

08.11.2001

20.11.2001

Product

292

82205 Taylor Woodrow plc

GB

Bryant Group plc

GB

1,047,969.55

22.01.2004

16.03.2001

Overcapacity

651

187490 Taylor Woodrow plc

GB

Wilson Connolly Holdings plc

GB

695,995.63

01.09.2003

16.01.2004

Overcapacity

920

150581 Tele2 AB

SE

Alpha Telecom (UK) Ltd

GB

85,629.53

17.02.2003

17.02.2003

Overcapacity

213

75680 Tele2 AB

SE

BaltCom GSM

LV

315,381.99

03.10.2000

03.10.2000

Market

893

101509 Tele2 AB

SE

FORA Telecom BV's Russian


operations

RU

88,862.62

14.11.2001

30.11.2001

Market

655

191166 Tele2 AB

SE

UTA Telekom AG

AT

213,000.00

22.09.2003

08.03.2004

Market

443

103786 Teleca AB

SE

AU-System AB

SE

146,277.52

10.12.2001

11.02.2002

R&D

226

76380 Telefonaktiebolaget LM Ericsson

SE

Microwave Power Devices Inc.

US

117,440.00

13.10.2000

27.11.2000

R&D

157

72193 Telelogic AB

SE

Quality Systems & Software Inc.

US

133,364.26

08.08.2000

12.09.2000

Product

326

86687 Telenor ASA

NO

COMSAT mobile communications

US

130,293.60

27.03.2001

14.01.2001

Market

367
532

90499 Telia AB
127203 TeliaSonera AB

SE

Sonera Oyj

FI

SE

Orange A/S

DK

7,450,000.00

26.03.2202

09.11.2002

Market

605,800.00

09.07.2004

11.10.2004

Overcapacity

54861 Tesco plc

GB

Somerfield plc's 45 larger stores

GB

500,000.00

26.01.2000

26.01.2000

Overcapacity

551

133133 Tesco plc

GB

Kipa Kitle Pazarlama Ticaret ve


Gida Sanayi AS

TR

109,090.91

27.02.2003

11.11.2003

Overcapacity

519

122552 Tesco plc

GB

HIT

PL

653,355.36

04.07.2002

19.07.2002

Market

559

135533 Tesco plc

GB

T&S Stores plc

GB

579,787.78 *

30.10.2002

09.01.2003

Market

GB

Building & Property (Holdings) Ltd

GB

134,319.33

14.12.2000

12.02.2001

Convergence

GB

Angarskaya Proizvodstvennaya
Kompaniya AS OOO

RU

75360.00

22.07.2004

30.11.2004

Overcapacity

268
949

79922 Tilbury Douglas plc


265857 Trans-Siberian Gold plc

248

78291 Trelleborg AB

SE

Laird Group plc's auto component


unit

GB

169,497.15

15.11.2000

02.01.2001

Overcapacity

568

138265 Trelleborg AB

SE

Manuli Dynaflex

FR

440,000.00

03.03.2004

03.03.2004

Overcapacity

639

179800 Trelleborg AB

SE

Polymer Sealing Solutions Ltd

GB

706,095.67

21.07.2003

01.10.2003

Product

237

77364 Trinity Mirror Regionals plc

GB

Southnews plc

GB

465,835.16

27.10.2000

28.11.2000

Geographic

168

72759 Tullow Oil plc

GB

BP Amoco's Southern North Sea


assets

GB

330,393.66

31.07.2000

25.08.2000

Overcapacity

714

236126 Tullow Oil plc

GB

Energy Africa Ltd

ZA

414,900.00 *

04.05.2004

04.08.2004

Overcapacity

384

92487 Ultraframe plc

GB

Four Seasons Group

US

144,656.52

26.06.2001

17.07.2001

Market

369

90808 Unite Group plc

GB

Unilodge Holdings (UK) Ltd

GB

179,930.94

01.06.2001

20.06.2001

Product

884

91114 United Business Media plc

GB

Allison-Fisher International Inc.

US

91,504.49

01.06.2001

27.06.2001

Geographic

890

95428 United Business Media plc

GB

Roper Starch Worldwide

US

96,958.40

03.08.2001

03.09.2001

Geographic

640

179865 United Business Media plc

GB

Aprovia UK Ltd

GB

111,570.07

21.07.2003

21.07.2003

Geographic

276

80438 United Utilities plc

GB

Hyder Industrial Ltd

GB

120,970.80

21.12.2000

21.12.2000

Product

182

73487 UPM-Kymmene Oyj

FI

Repap Enterprises Inc.

CA

1,010,000.00

29.08.2000

16.10.2000

Product

365

90442 UPM-Kymmene Oyj

FI

G Haindl'sche Papierfabriken KGaA DE

3,850,000.00

29.05.2001

30.11.2001

Product

60

60448 Valmet Corporation

FI

Beloit's service and aftermarket


business

US

170,212.80

20.04.2000

20.04.2000

Geographic

DK

Neg Micon A/S

DK

336,108.87

12.12.2003

31.05.2004

Overcapacity

605
89

155307 Vestas Wind Systems A/S

GB

Mannesmann AG

DE

############

04.02.2000

30.06.2000

Market

638

178693 Vodafone Group plc

GB

Project Telecom plc

GB

223,609.53

05.08.2003

17.10.2003

Overcapacity

259

79544 Vodafone Group plc

GB

Eircell Ltd

IE

4,500,000.00

21.12.2000

14.05.2001

Market

SE

Mack

US

1,860,000.00

25.04.2000

03.01.2001

Product

GB

Merlin Communications Group Ltd

GB

151,803.13

14.11.2001

03.12.2001

R&D

72
431
279

63699 Vodafone Airtouch plc

61243 Volvo AB
102027 Vosper Thornycroft Holdings plc

GB

Hanson Waste Management

GB

288,093.50

22.12.2000

31.01.2001

Market

452

105472 Wecan Electronics Oyj

80696 Waste Recycling Group plc

FI

Scanfil Oyj

FI

329,000.00

26.02.2002

01.10.2002

Product

499

116697 Westbury plc

GB

Prowting plc

GB

307,540.03

17.05.2002

27.06.2002

Geographic

654

190005 Whitbread plc

GB

Premier Lodge Ltd

GB

764,624.40

20.07.2004

24.07.2004

Geographic

671

205927 Wilson Bowden plc

GB

Ward Homes Group Ltd

GB

100,846.71

14.11.2003

14.11.2003

Geographic

576

141054 Wincanton plc

GB

P&O Trans European Ltd

GB

233,360.47

09.12.2002

31.12.2002

Market

537

127974 Wolseley Centers Ltd

GB

Brooks Manson

GB

188,714.77

19.08.2002

30.08.2002

Geographic

613

160406 Wolseley plc

GB

Pinault Bois et Materiaux SA

FR

565,000.00

30.04.2003

07.07.2003

Overcapacity

364

90292 Wolseley plc

GB

Westburne Group Inc., The

CA / US

429,218.04

23.05.2001

02.07.2001

Market

936

209569 Wolseley plc

GB

Tobler Management Holding AG

CH

76,205.29

01.12.2003

01.12.2003

Market

55209 Wolseley plc

GB

Terry Companies

US

102,459.00

11.01.2000

11.01.2000

Product

486

113604 Wolseley plc

GB

Clayton Acquisition Company

US

726

246688 Wolseley plc

GB

Brooks Group Ltd

IE

710

232034 Wolverhampton & Dudley


Breweries plc

GB

Wizard Inns Ltd

GB

61916 WPP Group plc

GB

Young & Rubicam Inc.

US

402

96227 WPP Group plc

GB

Tempus Group plc

GB

616,640.70

20.08.2001

06.12.2001

Market

498

116593 WPP Group plc

GB

Cordiant Communications Group


plc

GB

381,456.60

19.06.2003

01.08.2003

Product

358

89433 WSP Group plc

GB

Jacobson & Widmark AB

SE

112,545.02

11.05.2001

20.07.2001

Market

74

206
430
64
874

75319 Wyevale Garden Centres plc


101985 Wrtsil Oyj Abp
61009 Xansa plc
84127 Xenova Group plc

123,519.00

18.04.2002

18.04.2002

Product

183,000.00 *

30.07.2004

135,887.75

14.06.2004

31.08.2004

Product

14.06.2004

Geographic

5,479,295.36

12.05.2000

4.10.2000

Geographic

GB

Country Gardens plc

GB

213,647.56

25.09.2000

08.11.2000

Overcapacity

FI

John Crane-Lips

GB

353,567.30

30.01.2002

15.04.2002

Product

GB

Druid Group plc

GB

1,014,396.82

17.01.2000

15.05.2000

Convergence

GB

Cantab Pharmaceuticals plc

GB

99,152.75

19.02.2001

06.04.2001

R&D

570

138394 Xstrata plc

GB

MIM Holdings Ltd

AU

2,875,093.69

07.04.2003

30.06.2003

Overcapacity

645

181572 Xstrata plc

GB

Las Bambas copper project

PE

100,405.80

31.08.2004

31.08.2004

Product

636

176719 YIT-Yhtym Oyj

FI

ABB Ltd's Building Systems


DK / EE / FI /
business in the Nordic countries, the LT / LV / NO /
Baltics and Russia
RU / SE

169,200.00

04.07.2003

29.08.2003

Convergence

Appendix C: Total list of deals - Accounting Figures.


Deal No

Acquiror name

Acquiror
country code

Target name

Target country All Deal values Accouncement


code
th EUR
data

Completion
data

Strategy

Listed or not
listed

406

97295 Abbot Group plc

GB

Deutsche Tiefbohr AG

DE

187,402.92

31.08.2001

02.10.2001

Overcapacity

124

66592 Ahlstrom Paper Group Oy

FI

Dexter Corporation's nonwovenmaterials business

US

292,553.20

22.06.2000

31.08.2000

Overcapacity

586

144385 Aktieselskabet Damskibsselskabet


Svendborg

DK

Dampskibsselskabet AF 1912 AS

DK

6,510,389.37

06.05.2003

16.06.2003

Overcapacity

756

267934 Aktiv Kapital ASA

NO

Olympia Capital ASA

NO

178,645.79

30.07.2004

30.07.2004

Overcapacity

468

109636 Alfred McAlpine plc

GB

Stiell Ltd

GB

140,755.05

01.03.2002

01.03.2002

Product

877

86533 Alfred McAlpine plc

GB

Kennedy Utility Management Ltd

GB

84,843.65

22.03.2001

22.03.2001

Overcapacity

218

75841 Alliance Unichem plc

GB

Interpharm Groep

NL

223,700.00

05.10.2000

09.11.2000

Market

446

104055 Alliance Unichem plc

GB

Dudley Taylor Holdings's 59


pharmacies

GB

108,523.42

12.12.2001

12.12.2001

Product

888

92905 Allied Domecq plc

GB

Buena Vista Winery Inc.

US

95,913.90

29.06.2001

31.12.2001

Geographic

407

97369 Allied Domecq plc

GB

Kuemmerling GmbH

DE

203,494.17

04.09.2001

04.09.2001

Market

266

79884 Allied Domecq plc

GB

GH Mumm & Compagnie

FR

575,000.00

13.12.2000

01.01.2001

Product

816

56693 Alphameric plc

GB

Pennine Retail Holdings Ltd

GB

98,360.70

18.02.2000

18.02.2000

Product

59424 Amec plc

GB

Agra Inc.

CA

443,632.57

16.02.2000

13.04.2000

Product

FI

Precor Inc.

US

180,000.00

04.10.2002

01.11.2002

Product

GB

Trimark Financial Corporation

CA

1,959,645.81

25.07.2000

20.11.2000

Market

49
548
161

132439 Amer-yhtym Oyj


72599 Amvescap plc

230

76831 Amvescap plc

GB

Perpetual plc

GB

1,716,247.14

19.10.2000

04.12.2000

Product

291

82131 Amvescap plc

GB

National Asset Management


Company

US

334,740.00

01.03.2001

19.04.2001

Product

349

88781 Amvescap plc

GB

Pell Rudman & Co Inc.

US

224,640.00

27.04.2001

27.04.2001

Product

98

64040 Anglian Water plc

GB

Aguas Puerto

CL

143,412.07

06.07.2000

06.07.2000

Market

175

73253 Anglian Water plc

GB

Morrison plc

GB

436,990.18

24.08.2000

06.10.2000

Convergence

76

62289 Anglo American plc

GB

Shell Coal Holdings Ltd

AU

955,616.90

31.05.2000

27.07.2000

Overcapacity

495

115159 Anglo American plc

GB

Compania Minera Disputada de Las CL


Condes Limitada

1,402,676.00

02.05.2002

13.11.2002

Overcapacity

687

212516 Anglo American plc

GB

Roman Bauernfeind Holding AG

AT

344,000.00

10.12.2003

12.02.2004

Overcapacity

867

80469 Anite Group plc

GB

Calculus Solutions Ltd

GB

80,647.20

21.12.2000

21.12.2000

Geographic

830

61549 Anite Group plc

GB

Datavance Group SAS

FR

82,333.30

30.05.2000

30.05.2000

Product

75296 AP Fastigheter AB

204

SE

Dios-Anders Dios AB

SE

207,996.34

27.09.2000

19.12.2000

Overcapacity

589

147328 Aquavit plc

GB

Atlantic Water Ltd

GB

3,200,000.00

16.05.2003

16.05.2003

Overcapacity

931

199321 Archant Regional Ltd

GB

Independent News and Media Ltd's GB


North London division

88,084.43

11.12.2003

30.12.2003

Overcapacity

764

272920 ARM Holdings plc

GB

Artisan Components Inc.

US

675,802.60

23.08.2004

24.12.2004

R&D

11

55996 Arriva plc

GB

MTL Services plc

GB

138,852.50

24.01.2000

17.02.2000

Overcapacity

32

57721 Assa Abloy AB

SE

Yale locks business

GB

1,352,459.00

07.03.2000

31.08.2000

Geographic

440

103477 Assa Abloy AB

SE

Tesa Hardware

ES / MX

135,704.46

20.09.2001

28.11.2001

Market

491

114589 Assa Abloy AB

SE

Besam AB

SE

335,910.56

29.04.2002

01.07.2002

Product

242

77750 Assa Abloy AB

SE

Hughes Identification Devices

US

325,127.73

06.11.2000

06.11.2000

R&D

90420.00

09.03.2004

06.05.2004

Market

940

231208 Associated British Foods plc

GB

Unilever Group's Mexican food oils MX


and fats brands

574

139861 Associated British Foods plc

GB

Novartis AG's food and beverage


business

CH

272,500.00

08.10.2002

29.11.2002

Overcapacity

709

230806 Associated British Foods plc

GB

Tone Brothers Inc.

US

1,109,835.00

22.07.2004

03.09.2004

Overcapacity

702

227241 Atlas Copco AB

SE

Ingersoll-Rand Drilling Solutions

BM / US

184,522.50

19.02.2004

13.10.2004

Product

315

85693 Autologic Holdings plc

GB

Axial Logistics Ltd

GB

124,121.96

27.03.2001

05.06.2001

Geographic

873

83961 Babcock International Group plc

GB

Hunting Defence Services

GB

94,189.60

15.02.2001

09.03.2001

Overcapacity

732

252666 BAE Systems plc

GB

Alvis plc

GB

354,521.71 *

03.06.2004

23-09-2004

Product

919

148818 BAE Systems plc

GB

Mevatec Corporation

US

77,465.40

05.02.2003

24.03.2003

Product

760

271982 Barchester Healthcare Ltd

GB

Westminster Healthcare Ltd

GB

756,441.21

19.10.2004

31.10.2004

Overcapacity

937

214367 Barclaycard

GB

Clydesdale Financial Services Ltd

GB

89,512.11

26.09.2003

26.09.2003

Overcapacity

822

58114 BBA Group plc

GB

Oxford Aviation Holdings Ltd

GB

90,819.70

01.03.2000

01.03.2000

Convergence

750

264293 BBA Group plc

GB

Aircraft Service International Group US


Inc.

160,529.39

11.05.2001

11.05.2001

Overcapacity

318

85910 Benfield Greig Ltd

GB

EW Blanch Holdings, Inc.

US

209,662.70

16.04.2001

29.05.2001

Overcapacity

416

99708 BG Group plc

GB

Enron Oil & Gas India Ltd

IN

400,505.00

03.10.2001

14.02.2002

Overcapacity

675

206909 BG Group plc

GB

El Paso Oil & Gas Canada Inc.

CA

280,385.28

16.02.2004

24.03.2004

Overcapacity

706

228610 BG Group plc

GB

Mauritania Holdings BV

NL

112,627.65

19.02.2004

31.03.2004

Overcapacity

180

73429 Billiton plc

GB

Rio Algom Ltd

CA

1,961,180.13

25.08.2000

29.11.2000

Overcapacity

270

80015 Bodycote International plc

GB

Lindberg Corporation

US

168,359.62

14.12.2000

18.01.2001

Overcapacity

631

SE

Outokumpu's mining and smelting


operations within zinc and copper

FI / IE / NL /
NO

849,000.00

08.09.2003

30.12.2003

Overcapacity

35

57835 BP Amoco plc

GB

Burmah Castrol plc

GB

5,647,541.00

14.03.2000

10.07.2000

Overcapacity

866

80383 BP Amoco plc

GB

Solvay SA's polypropylene


business

BE

80000.00

19.12.2000

01.11.2001

Overcapacity

389

93388 BP plc

GB

Cairns Ltd

GB

126,345.60

06.07.2001

06.07.2001

Overcapacity

105

64533 BPB plc

GB

Celotex Corporation's wallboard


and ceiling tile businesses

US

367,021.30

01.06.2000

01.07.2000

Overcapacity

474

110622 BPB plc

GB

James Hardie Industries NV's US


wallboard businesses

US

386,331.00

13.03.2002

25.04.2002

Overcapacity

GB

M&J Seafoods (Wholesale) Ltd

GB

77,868.90

13.03.2000

20.03.2000

Product

823

170707 Boliden AB

58132 Brake Bros plc

439

103352 British Gas Trading Ltd

GB

Enron Direct Ltd

GB

157,676.92

04.12.2001

03.04.2002

Overcapacity

527

126400 British Gas Trading Ltd

GB

Electricity Direct (UK) Ltd

GB

100,335.88

06.08.2002

06.08.2002

Overcapacity

776

286861 British Land Company plc, The

GB

Spirit Group Ltd's 65 pubs

GB

250,750.86

20.10.2004

20.10.2004

Geographic

328

86787 British Land Company plc, The

GB

22 Homebase Ltd do-it-yourself


stores

GB

249,079.36

25.03.2001

06.04.2001

Product

139

68888 British Sky Broadcasting Group plc GB

Sports Internet Group plc

GB

502,166.70

16.05.2000

02.10.2000

Convergence

GB

Groupe Pierre Le Goff

FR

236,000.00

10.05.2004

10.05.2004

Market

724

245974 Bunzl plc

127

66894 Cable & Wireless plc

GB

POP Point of Presence GmbH

DE

106,609.81

18.07.2000

26.07.2000

Product

420

100150 Cable & Wireless plc

GB

Exodus Communications Inc.'s


assets

US

855,450.00

30.11.2001

06.03.2002

Product

353

89232 Cadbury Schweppes plc

GB

La Casera SA

ES

117,000.00

24.07.2001

31.12.2001

Geographic

590

147961 Cadbury Schweppes plc

GB

Warner Lambert (Adams) de


Mexico

MX

4,000,000.00

01.04.2003

01.04.2003

Geographic

195

74592 Cadbury Schweppes plc

GB

Snapple Beverage Corporation

US

1,725,779.58

18.09.2000

26.10.2000

Product

477

111350 Cadbury Schweppes plc

GB

Pfizer Inc.'s Adams division

US

3,890,880.00

15.12.2002

31.05.2003

Product

488

113766 Cadbury Schweppes plc

GB

Dandy A/S

DK

312,673.48

27.06.2002

27.06.2002

Product

209

75516 Cadbury Schweppes plc

GB

Orangina Schweppes SAS

FR

700,000.00

21.09.2001

31.10.2001

Overcapacity

151

71243 Capita Group plc, The

GB

IRG plc

GB

169,491.50

12.04.2000

30.04.2000

Product

59

60443 CapMan Oyj

FI

Vestcap Oyj

FI

119,000.00

19.04.2000

19.04.2000

Market

29

57485 Caradon plc

GB

Brand-Rex Ltd

GB

237,704.90

06.03.2000

31.03.2000

Product

561

136659 Carphone Warehouse Group plc

GB

Opal Telecommunications plc

GB

168,812.26

06.11.2002

06.11.2002

Product

883

90862 Carphone Warehouse Group plc

GB

Cellcom Ltd

GB

89,152.53

25.05.2001

25.05.2001

Product

562

137068 Centrica plc

GB

Dynegy Storage Ltd

GB

497,251.10

14.11.2002

14.11.2002

Product

735

254128 Centrica plc

GB

Killingholme Power Ltd's CCGT


GB
power station in North Lincolnshire.

212,255.11

08.06.2004

08.06.2004

Product

951

271186 Centrica plc

GB

Dyno-Rod plc

GB

83,921.29

01.10.2004

01.10.2004

Product

885

91556 Centrica plc

GB

One.Tel plc

GB

96,713.12

03.07.2001

03.07.2001

Convergence

173

73029 Centrica plc

GB

Direct Energy Marketing Ltd

CA

688,925.82

06.07.2000

22.08.2000

Overcapacity

457

106601 Centrica plc

GB

Enbridge Services Inc.

CA

694,377.15

28.01.2002

07.05.2002

Overcapacity

487

113615 Centrica plc

GB

Central Power and Light Company

US

142,277.00

17.04.2002

24.12.2002

Overcapacity

720

242742 Centrica plc

GB

Bastrop Energy Partners LP

US

116,816.70

22.04.2004

02.06.2004

Overcapacity

257

79408 Cobham plc

GB

BAE Systems Electronics Ltd's


Power & Control Business

GB

100,528.94

04.12.2000

29.12.2000

Product

414

99355 Coloplast A/S

DK

SSL International plc's incontinence GB


products unit

129,345.19

29.09.2001

29.09.2001

Market

299

83281 Compass Group plc

GB

Morrison Management Specialists


Inc.

US

629,828.10

06.02.2001

05.04.2001

Geographic

302

83644 Compass Group plc

GB

Selecta Group AG

CH

576,036.84

12.02.2001

20.05.2001

Geographic

392

94671 Compass Group plc

GB

Vendepac Ltd

GB

142,768.30

23.07.2001

23.07.2001

Geographic

399

95544 Compass Group plc

GB

Crothall Services Group

US

186,592.00

07.08.2001

31.08.2001

Product

572

139390 Computacenter plc

GB

GE CompuNet (Germany) AG

DE

185,717.76

28.11.2002

02.11.2003

Geographic

61

60629 Cookson Group plc

GB

ACHEM Laminates

CN / TW

142,553.20

27.04.2000

30.06.2000

Market

544

131786 Dairy Crest Group plc

GB

Uniq's St Ivel Spreads business

GB

136,754.19

29.09.2002

01.11.2002

Product

52

59531 Dairy Crest Group plc

GB

Unigate plc's dairy and cheese


business

GB

398,305.10

27.04.2000

19.07.2000

Overcapacity

400

96156 Danisco A/S

DK

Germantown International Ltd

AU

109,560.00

15.08.2001

15.08.2001

Market

682

211101 Danisco A/S

DK

Rhodia SA's food additives division FR

320,000.00

05.02.2004

01.06.2004

Product

899

115331 Danisco A/S

DK

Perlarom SA

BE

80,703.40

07.05.2002

07.05.2002

Overcapacity

479

111469 Davis Service Group plc, The

GB

Sophus Berendsen A/S

DK

689,710.52

22.03.2202

24.05.2002

Market

200

75169 Dimension Data Holdings plc

GB

TimeBridge Technologies Inc.

US

253,079.13

27.09.2000

01.11.2000

Market

354

89335 Dimension Data Holdings plc

GB

Proxicom Inc.

US

519,948.80

07.05.2001

15.06.2001

Product

323

86475 Dimension Data Holdings plc

GB

Premier Systems Integrators LLC

US

154,808.40

19.03.2001

31.12.2001

R&D

708

230006 DS Smith plc

GB

Linpac Containers Ltd

GB

253,737.86

31.03.2004

22.03.2004

Market

496

115312 Easyjet plc

GB

GO Fly Ltd

GB

598,610.57

16.05.2002

01.08.2002

Product

NO

Fellesdata AS

NO

306,642.27

24.02.2000

01.04.2000

Product

403

96385 EDB Business Partner ASA

803

344772 Elcoteq Network Oyj

FI

Tellabs Oy's manufacturing


operations in Espoo

FI

100,000.00 *

15.11.2003

31.12.2003

Product

901

125005 Electra Partners Europe Ltd

GB

Newhill Ltd

IE

75000.00

19.07.2002

19.07.2002

Product

494

114924 Electrolux AB

SE

Diamant Boart International

BE

187,029.28

02.05.2002

02.07.2002

Product

251

78501 Electrolux AB

SE

Email Ltd's household appliance


making unit

AU

293,154.62

20.11.2000

26.02.2001

Overcapacity

90000.00

02.04.2003

30.06.2003

Overcapacity

906

132009 Emap plc

GB

Excelsior Publications SA

FR

388

92848 Eniro AB

SE

Direktia Ltd

FI

100,912.76

03.09.2001

10.09.2001

Geographic

267

79908 Eniro AB

SE

Wer liefert was? GmbH

DE

120,048.84

13.12.2000

25.01.2001

Product

313

85573 Eniro AB

SE

Panorama Polska

PL

134,967.27

12.03.2001

31.05.2001

Overcapacity

77

62786 Enterprise Inns plc

GB

Swallow's Inns and Restaurants

GB

198,333.30

16.05.2000

11.07.2000

Geographic

363

90099 Enterprise Inns plc

GB

Morgan Grenfell Private Equity's


439 pubs

GB

424,953.43

22.05.2001

12.06.2001

Geographic

379

92117 Enterprise Inns plc

GB

Scottish & Newcastle plc's 432


pubs

GB

446,118.76

18.06.2001

05.07.2001

Geographic

484

113219 Enterprise Inns plc

GB

Laurel Pub Group Ltd

GB

1,381,619.14

12.04.2002

24.05.2002

Geographic

627

168293 Enterprise Inns plc

GB

Unique Pub Company plc

GB

3,463,289.21

12.03.2004

31.03.2004

Geographic

GB

FX Coughlin Group

US

364,498.53 *

15.03.2001

17.04.2001

Geographic

316

85885 Exel plc

467

108558 Fastighets AB Tornet

SE

Amplion Fastigheter AB

SE

114,570.22

18.02.2002

01.03.2002

Geographic

422

100796 Fenner plc

GB

Unipoly Enerka Holdings UK Ltd

GB

131,194.33

22.10.2001

30.11.2001

Product

GB

Bentalls plc

GB

112,871.60

28.06.2001

10.08.2001

Overcapacity

374

91664 Fenwick Ltd

621

163593 Finning UK Ltd

GB

Lex Harvey Ltd

GB

141,954.06

28.04.2003

02.07.2003

Market

849

74989 Finnveden AB

SE

Bulten AB

SE

97,194.10

21.09.2000

17.11.2000

Market

814

56295 First Choice Holidays plc

GB

Holiday Hypermarkets (1998) Ltd

GB

76,393.40

15.12.1999

01.02.2000

Product

145

69991 Fitch IBCA

FR / GB

Duff & Phelps Credit Rating Co

US

501,834.66

07.03.2000

30.05.2000

Market

526

126148 Four Seasons Health Care Ltd

GB

Omega Worldwide Inc.

US

121,249.10

01.08.2002

09.09.2002

Product

746

262396 Galen Holdings plc

GB

US

112,250.32

02.07.2001

09.07.2001

R&D

115

65635 Gallaher Group plc

GB

Bristol-Myers Squibb Company's


Estrace tablets hormone
replacement therapy business
Liggett-Ducat Ltd

RU

415,425.50

15.06.2000

04.08.2000

Market

GB

SMG Publishing Ltd

GB

315,700.14

23.12.2002

04.04.2003

Market

482

113041 Gannett UK Ltd

396

95183 George Wimpey plc

GB

Alfred McAlpine Homes Holdings


Ltd

GB

739,599.51

14.08.2001

01.10.2001

Market

375

91691 George Wimpey plc

GB

Laing Homes Ltd

GB

469,549.05

16.10.2002

01.11.2002

Product

283

80817 Gerber Foods Holdings Ltd

GB

Emig AG's fruit juice business

DE

103,792.25

20.12.2000

09.02.2001

Overcapacity

857

78408 Getinge AB

SE

Maquet AG

DE

91000.00

17.11.2000

01.01.2001

Convergence

604

154492 Getinge AB

SE

Siemens Medical Solutions's Life


Support Systems business unit

SE

180,000.00

15.08.2003

09.10.2003

Overcapacity

848
615

73204 GKN plc


160694 Gladedale Holdings plc

GB

Nissan Motor Co., Ltd's drive shaft


operations

JP

94,482.88

06.08.2000

01.11.2000

Product

GB

Bett plc

GB

133,043.79

09.04.2003

24.06.2003

Market

136

68143 Glaxo Wellcome plc

GB

Smithkline Beecham plc

GB

69,635,433.09

17.01.2000

27.12.2000

Geographic

217

75802 GN Store Nord A/S

DK

Hello Direct Inc.

US

109,696.50

05.10.2000

24.04.2001

Geographic

408

97739 Greene King plc

GB

Old English Inns plc

GB

164,966.44

07.09.2001

24.10.2001

Geographic

466

108477 Greene King plc

GB

Morrells of Oxford Ltd

GB

104,975.59

18.06.2002

18.06.2002

Geographic

554

133538 Greene King plc

GB

Laurel Pub Company Ltd's 432


pubs

GB

989,350.97

08.07.2004

06.08.2004

Geographic

103

64506 Guardian IT plc

GB

Safetynet Group plc

GB

274,193.50

14.06.2000

14.06.2000

Market

159

72307 Gunnebo AB

SE

Chubb Safes Group

GB

140,019.54

10.08.2000

01.09.2000

Overcapacity

GB

Homebase Ltd

GB

1,413,698.08

21.11.2002

18.12.2002

Overcapacity

569

138270 GUS plc

571

138459 H Lundbeck A/S

DK

Synaptic Pharmaceutical
Corporation

US

110,412.50

21.11.2002

06.03.2003

R&D

359

89435 Hafslund ASA

NO

Viken Energinett AS

NO

413,125.08

13.07.2001

20.03.2002

Product

111

65141 Hagemeyer UK Ltd

GB

WF Electrical plc

GB

137,903.20

13.06.200

25.08.2000

Geographic

908

133776 Halma plc

GB

Bureau D'Electronique Appliquee


SA

BE

95000.00

16.10.2002

16.10.2002

R&D

542

129734 Hammerson plc

GB

Grantchester Holdings plc

GB

305,306.12

09.09.2002

21.10.2002

Product

914

142772 Hammerson plc

GB

RT Group Developments Ltd

92,534.05

27.12.2002

28.02.2003

Overcapacity

284

80940 Hanson plc

GB

Davon Inc

US

105,221.16

04.01.2001

04.01.2001

Overcapacity

507

118052 Hanson plc

GB

Choctaw Inc.

US

145,368.00

29.05.2002

29.05.2002

Overcapacity

619

162336 Hanson plc

GB

Better Materials Corporation

US

138,368.50

16.04.2003

18.07.2003

Overcapacity

60215 Harvey Nash Group plc

GB

TechPartners International Limited GB / US

82,366.78

25.04.2000

25.04.2000

Market

827

60641 Haslemere Estates plc

GB

Scottish Metropolitan Property plc

GB

176,829.27

27.04.2000

14.07.2000

Geographic

841

62

68050 Hays plc

GB

EPS Ltd

GB

89,532.80

21.01.2000

21.01.2000

Geographic

252

78517 Hexagon AB

SE

Brown & Sharpe Manufacturing


Company's metrology business

US

202,338.00

17.11,2000

30.04.2001

Convergence

837

66079 Highbury House Communications


plc

GB

Columbus Group plc's magazines


division

GB

80,645.20

26.06.2000

03.08.2000

Overcapacity

343

88155 Hilton Group plc

GB

Scandic Hotels AB

SE

995,234.80

23.04.2001

21.05.2001

Overcapacity

296

83065 Hit Entertainment plc

GB

Lyrick Corporation

US

294,332.50

09.02.2001

06.03.2001

Market

GB

Kuoni Reisen Holding AG's BTI


Central Europe business travel
division

AT / CH / DE /
HU / LI

226,813.48 *

05.12.2003

30.01.2004

Market

SE

Papelera Peninsular SA

ES

244,042.60

06.04.2000

13.07.2000

Overcapacity

683

132

211303 Hogg Robinson plc

67501 Holmen AB

520

122592 Home Service GB Limited

GB

Highway Emergency Services Ltd

GB

103,075.63

05.07.2002

05.07.2002

Product

808

499321 Hufvudstaden AB

SE

Vasaterminalen AB

SE

104,119.19

01.01.2000

01.01.2000

Product

455

106547 Hydro Aluminium AS

NO

Technal SA

FR

110,756.36

30.10.2001

25.01.2002

Overcapacity

650

186753 Hydro Aluminium AS

NO

Alpart alumina refinery

JM

258,331.50

22.01.2004

01.07.2004

Overcapacity

GB

Cunningham Communication Inc.

US

83,084.08

26.07.2000

24.08.2000

Overcapacity

846

72616 Incepta Group plc

336

87320 Ineos Group Ltd

GB

Degussa AG's Phenolchemie unit

DE

422,000.00

04.04.2001

18.05.2001

Product

707

229807 Informa Group plc

GB

Taylor & Francis Group plc

GB

849,415.60

02.03.2004

10.05.2004

Geographic

303

84326 Innovation Group plc, The

GB

Huon Holdings Ltd

AU

295,506.56

17.05.2001

17.06.2001

Market

886

92736 Innovation Group plc, The

GB

MTW Corporation

US

95751.00

06.07.2001

18.07.2001

R&D

148

70318 Invensys plc

GB

Baan Company NV

NL

762,000.00

31.05.2000

30.08.2000

Product

GB

Foreign & Colonial Investment


Trust plc

GB

02.07.2004

11.10.2004

Product

GB

Torex plc

GB

489,845.05

25.09.2003

23.01.2004

Market

744
641

260304 ISIS Asset Management plc


180111 iSOFT Group plc

1,246,669.12 *

889

93986 ISS A/S

DK

M&M Medical

SE

92,302.04

12.07.2001

12.07.2001

Geographic

583

143841 ISS A/S

DK

Eurogestion

FR

155,000.00

23.04.2002

23.04.2002

Convergence

865

80236 ISS A/S

DK

Lavold Groep

NL

83,840.88

19.12.2000

20.02.2001

Overcapacity

60237 John Mansfield Group plc

GB

Rexam plc's printing division

GB

144,067.80

04.04.2000

30.04.2000

Convergence

58
705

228107 John Swire & Sons Ltd

GB

James Finlay Ltd

GB

118,640.04 *

18.05.2000

26.09.2000

Geographic

381

92276 Johnson Matthey plc

GB

Meconic plc

GB

234,993.45

21.06.2001

09.08.2001

Market

509
47

118545 Johnson Matthey plc


59185 Johnson Service Group plc

GB

Synetix Ltd

GB

411,053.04

23.09.2002

01.11.2002

Product

GB

Semara Holdings plc

GB

160,339.00

28.01.2000

20.04.2000

Overcapacity

473

110518 Johnston Press plc

GB

Regional Independent Media


Holdings Ltd

GB

910,285.38

12.03.2002

12.03.2002

Overcapacity

483

113059 JOT Automation Group Oyj

FI

Elektrobit Oy

FI

160,000.00

11.04.2002

15.05.2002

Convergence

447

104275 Kemira Oyj

FI

Vinings Industries

US

160,839.00

17.12.2001

31.01.2002

Market

244

78112 Kemira Oyj

FI

Alcro-Beckers AB

SE

200,000.00

07.11.2000

12.02.2001

Product

277

80544 Kingfisher plc

GB

28 non-trading store development


sites

GB

349,566.61

22.12.2000

22.12.2000

Market

238,624.61

30.11.2004

31.12.2004

R&D

790

298310 Kingston Communications (Hull) plc GB

Omnetica Ltd

GB

911

141630 Kyro Oyj Abp

FI

Glasto Holding BV

NL

76000.00

13.12.2002

20.01.2003

Overcapacity

176

73265 Laird Group plc, The

GB

Instrument Specialities Co Inc

US

336,362.63

07.08.2000

26.08.2000

Convergence

763

272895 Laird Group plc, The

GB

Centurion Wireless Technologies


Inc.

US

155,094.33

23.08.2004

05.10.2004

Convergence

55556 Lassila & Tikanoja Oyj

FI

WM Ymparistopalvelut Oy

FI

101,000.00

31.01.2000

28.04.2000

Overcapacity

84688 Lex Service plc

GB

Auto Windscreens Ltd

GB

183,784.18

30.03.2001

30.03.2001

Product

GB

Victoria Centre Partnership, The

GB

320,339.69

09.11.2002

09.11.2002

Geographic

Railtrack (UK) Ltd

GB

596,457.16

27.06.2002

03.10.2002

Product

9
305
565

137442 Liberty International plc

515

121513 London & Continental Railways Ltd GB

331

86842 London & Regional Properties Ltd

GB

Strand Palace Hotel

GB

170,874.47

28.03.2001

28.03.2001

Product

131

67178 London Vista Hotel Ltd

GB

Corus & Regal Hotels plc

GB

136,242.68

11.07.2000

17.10.2000

Product

62793 Luminar plc

GB

Northern Leisure plc

GB

850,833.30

16.05.2000

11.07.2000

Product

GB

Per Una

GB

181,524.26

13.07.2004

05.10.2004

Product

GB

Exchange FS Group plc

GB

141,732.74

19.09.2001

05.11.2001

Product

Malmaison Hotel Ltd's properties


and business

GB

103,291.83

31.08.2000

10.09.2002

Geographic

79
749

263872 Marks & Spencer Group plc

412

98515 Marlborough Stirling plc

184

73693 Marylebone Warwick Balfour Group GB


plc

955

282256 Marylebone Warwick Balfour Group GB


plc

Hotel du Vin Ltd

GB

96,282.39

04.10.2004

04.10.2004

Geographic

523

125561 MBNA Europe Bank Ltd

GB

Alliance & Leicester plc's credit


card business

GB

356,895.34

26.07.2002

29.07.2002

Product

321

86455 MBNA Europe Bank Ltd

GB

Abbey National plc's retail credit


card assets

GB

463,894.14

19.03.2001

19.03.2001

Overcapacity

697

221687 MBNA Europe Bank Ltd

GB

Vendcrown Ltd

GB

260,343.63

28.01.2004

28.01.2004

Overcapacity

734

253651 Meggitt plc

GB

605,576.28

05.07.2004

25.08.2004

Product

1,734,000.00

28.02.2000

05.05.2000

Product

56255 Merkantildata ASA

NO

Dunlop Standard Aerospace Group GB


Ltd's Design & Manufacturing
businesses
Avenir ASA
NO

117

65860 Metso Oyj

FI

Svedala Industri AB

SE

1,649,578.80

21.06.2000

11.09.2001

Geographic

120

66406 Mets-Serla Oy

FI

MoDo Paper AB

SE

1,600,000.00

01.06.2000

09.08.2000

Overcapacity

225

76314 Miller Group Ltd

GB

Birch

GB

102,122.82

11.10.2000

11.10.2000

Market

15

915

142816 Minelco AB

SE

Stinnes AG's Frank & Schulte and


Minerals Division

DE

75000.00

20.12.2002

17.04.2003

Product

382

92282 Misys plc

GB

DBS Management plc

GB

123,274.84

19.06.2001

13.07.2001

Product

383

92370 Misys plc

GB

Sunquest Information Systems Inc. US


(Old)

462,095.20

25.06.2001

30.07.2001

Product

695

216316 Mondi Packaging (UK) Ltd

GB

Bauernfeind's corrugated paper and AT / BE / DE /


packaging businesses
IT / PL

344,000.00

10.03.2003

28.02.2004

Overcapacity

648

185773 Mouchel plc

GB

Parkman Group plc

GB

112,958.88

21.08.2003

17.10.2003

Overcapacity

306

84749 Mlnlycke Health Care AB

SE

Johnson & Johnson's surgical


products business

MX

114,341.53

19.02.2001

19.02.2001

Product

512

120023 National Express Group plc

GB

Stock Transportation Ltd

CA

112,634.20

17.06.2002

09.07.2002

Market

55045 National Express Group plc

GB

ATC Group

US

174,590.20

04.01.2000

14.01.2000

Product

84

63092 National Express Group plc

GB

School Services & Leasing Inc.

US

227,833.30

31.05.2000

31.08.2000

Product

156

72164 National Express Group plc

GB

Prism Rail plc

GB

259,664.76

18.07.2000

17.01.2001

Overcapacity

188

73897 National Grid Group plc, The

GB

Niagara Mohawk Holdings Inc.

US

10,372,950.00

05.09.2000

31.01.2002

Overcapacity

489

114017 National Grid Group plc, The

GB

Lattice Group plc

GB

10,304,081.63

22.04.2002

21.10.2002

Overcapacity

GB

Orbis Technology Ltd

GB

89,651.64

01.12.2000

01.12.2000

Product

GB

Northern Foods plc's Ski and


Munch Bunch brands

GB

237,169.64

31.01.2002

03.04.2002

Geographic

GB

HCMS Ltd

GB

176,994.95

02.08.2001

14.09.2001

Product

DK

ALTO International A/S

DK

121,044.72

04.05.2004

31.07.2004

Product

862
493
397
713

79475 NDS Group plc


114850 Nestle UK Ltd
95336 Nestor Healthcare Group plc
234286 Nilfisk-Advance A/S

935

209562 Nobia AB

SE

Gower Group Ltd

GB

98,349.64

01.12.2003

01.12.2003

Product

158

72200 Nokia Oyj

FI

DiscoveryCom Inc

US

245,207.31

08.08.2000

31.08.2000

Product

261

79551 Nokia Oyj

FI

Ramp Networks Inc.

US

134,152.20

07.12.2000

22.01.2001

Product

395

95018 Nokia Oyj

FI

Amber Networks

US

462,763.20

26.07.2001

29.08.2001

R&D

19

56655 Nokia Oyj

FI

Network Alchemy Inc.

US

341,836.70

01.02.2000

06.03.2000

Convergence

945

244808 NordAnglia Education plc

GB

Leapfrog Day Nurseries plc

GB

89,739.79

30.04.2004

30.06.2004

Overcapacity

536

127971 Norsk Hydro ASA

NO

Technal SA

FR

116,000.00

01.12.2001

31.01.2002

Market

300

83353 Norsk Hydro ASA

NO

VAW Aluminium AG

DE

3,095,000.00

07.01.2001

15.03.2002

Overcapacity

366

90456 Norske Skogindustrier ASA

NO

Walsum paper mill

DE

1,088,444.80

29.05.2001

30.11.2001

Market

135

67661 Norske Skogindustrier ASA

NO

Fletcher Challenge Paper Ltd

NZ

2,659,574.50

03.04.2000

28.07.2000

Overcapacity

Rebus HR Group

GB

221,917.95

17.12.2003

23.01.2004

Product

686

212152 Northgate Information Solutions plc GB

233

76994 NSB Retail Systems plc

GB

STS Systems

CA

428,923.46

22.10.2000

29.12.2000

Market

54979 NSB Retail Systems plc

GB

Real Time Control plc

GB

120,983.60

28.01.2000

26.04.2000

Overcapacity

SE

Bacon's Information Inc.

US

101,349.00

14.11.2001

29.11.2001

Market

GB

NFC plc

GB

2,302,394.74

21.02.2000

15.06.2000

Overcapacity

SE

HEX Oyj

FI

171,000.00

20.05.2003

06.10.2003

Overcapacity

419
65
624

100092 Observer AB
61036 Ocean Group plc
165517 OM AB

255

78829 Orkla Media AS

NO

Det Berlingske Officin A/S

DK

210,510.79

28.11.2000

01.02.2000

Geographic

216

75782 Outokumpu Oyj

FI

Norzink AS

NO

201,402.00

05.10.2000

24.04.2001

Product

517

121868 Outokumpu Oyj

FI

AvestaPolarit Oyj Abp

FI

555,000.00

01.07.2002

15.08.2002

Overcapacity

75324 Outokumpu Steel Oyj

FI

Avesta Sheffield AB

SE

1,362,167.30

28.09.2000

23.01.2001

Overcapacity

57591 Pandox AB

SE

Hotellus International

SE

89,471.97

08.02.2000

31.03.2000

Market

GB

Bon Marche Group Ltd

GB

116,670.60

03.07.2002

19.07.2002

Product

207
819
511

119958 Peacock Group plc, The

43

58540 Pearson plc

GB

Dorling Kindersley Holdings plc

GB

509,836.10

31.03.2000

13.06.2000

Product

164

72702 Pearson plc

GB

National Computer Systems Inc.

US

2,758,662.27

31.07.2000

08.09.2000

Convergence

30

57549 Pendragon plc

GB

Lex Service plc's 32's franchised


car dealerships and 4 bodycentres

GB

155,737.70

08.03.2000

08.03.2000

Overcapacity

696

218611 Pendragon plc

GB

CD Bramall plc

GB

338,798.74

23.01.2004

16.03.2004

Overcapacity

287

81721 Persimmon plc

GB

Beazer Group plc

GB

871,104.92

24.01.2001

11.04.2001

Overcapacity

224

76135 Petrochem UK Ltd

GB

Carless Refining & Marketing Ltd

GB

187,918.34

10.10.2000

19.01.2001

Product

421

100257 Posten AB

SE

DSV Parcel Holding A/S

DK

135,602.61

10.10.2001

27.12.2001

Product

669

202407 Premier Foods plc

GB

Unilever Group's Ambrosia


business

GB

153,645.07

03.11.2003

31.12.2003

Product

290

82073 ProSafe ASA

NO

Nortrans Offshore Ltd

BM / SG

223,966.34

22.01.2001

22.01.2001

Product

152

71941 Psion plc

GB

Teklogix International Inc.

CA

407,109.57

12.07.2000

20.09.2000

Product

809

551896 QinetiQ Group plc

GB

Westar Aerospace and Defense


Group Inc.

US

105,482.00

14.09.2004

30.09.2004

Convergence

953

278193 QinetiQ Ltd

GB

Westar Corporation

US

97630.00

14.09.2004

10.12.2004

Product

769

276924 QinetiQ Ltd

GB

Foster-Miller Inc.

US

131,899.68

08.09.2004

09.11.2004

Convergence

903

126652 Quintain Estates and Development GB


plc

Wembley (London) Ltd

GB

76,394.16

07.08.2002

07.08.2002

Product

314

85583 Reckitt Benckiser plc

GB

Oxy Co Ltd

KR

134,932.91

12.03.2001

12.03.2001

Geographic

861

78756 Reckitt Benckiser plc

GB

Mosquito Coil Group

ID

76,742.05

24.11.2000

24.11.2000

Market

753

266052 Regus Group plc

GB

HQ Global Holdings Inc.

US

249,857.40

16.07.2004

20.08.2004

Market

932

200036 REIT Asset Management Ltd

GB

Azorim Properties Ltd

IL

75,815.45

23.10.2003

23.10.2003

Market

679

209000 REIT Asset Management Ltd

GB

St Katharine Docks

GB

432,224.11

26.11.2003

26.11.2003

Convergence

327

86772 Reuters Group plc

GB

Bridge Information Systems Inc.

US

410,076.20

30.04.2001

28.09.2001

Market

596

150860 Reuters Group plc

GB

Multex.com Inc.

US

183,046.50

18.02.2003

26.03.2003

Convergence

842

70102 Reuters Group plc

GB

Yankee Group Research Inc.

US

80,555.60

09.05.2000

05.06.2000

Overcapacity

140

69028 Rexam plc

GB

American National Can Group Inc.

US

2,091,525.40

02.04.2000

24.07.2000

Product

445

104015 Rexam plc

GB

Crown Cork & Seal Company Inc's US


beauty pumps business

121,600.80

13.12.2001

22.01.2002

Product

630

170514 Rexam plc

GB

Risdon Pharma SA

FR

125,000.00

04.06.2003

05.08.2003

Product

552

133391 Rexam plc

GB

Nienburger Glas GmbH

DE

106,175.44

14.10.2002

29.11.2002

Overcapacity

246

78168 Rio Tinto plc

GB

Ashton Mining Ltd

AU

421,621.20

10.11.2000

22.01.2001

Product

174

73101 Rio Tinto plc

GB

North Ltd

AU

1,835,121.05

03.08.2000

10.10.2000

Overcapacity

179

73381 Rio Tinto plc

GB

Ashton Mining Ltd

AU

364,336.35

28.08.2000

06.11.2000

Overcapacity

GB

Softline Ltd

ZA

94,813.14

01.08.2003

14.11.2003

Market

926

175108 Sage Group plc, The

20

56704 Sage Group plc, The

GB

Best Software Inc.

US

445,901.60

12.01.2000

22.02.2000

Product

330

86837 Sage Group plc, The

GB

Interact Commerce Corporation

US

316,093.80

28.03.2001

02.05.2001

Product

928

179240 Sage Group plc, The

GB

Timberline Software Corporation

US

86,694.30

17.07.2003

22.09.2003

Overcapacity

497

115382 Sandvik AB

SE

Valenite Inc.

US

187,998.65

16.06.2002

09.08.2002

Geographic

391

94436 SanomaWSOY Oyj

FI

VNU NV's consumer magazine


publishing business

NL

1,206,000.00

20.07.2001

20.07.2001

Market

129

67122 Sapa AB (Old)

SE

Anodizing Inc.

US

122,235.80

01.08.2000

01.09.2000

Geographic

177

73272 Scottish & Southern Energy plc

GB

SWALEC

GB

357,214.97

07.08.2000

31.10.2000

Geographic

524

125922 Scottish & Southern Energy plc

GB

Dynegy Hornsea Ltd

GB

205,260.22

30.09.2002

30.09.2002

Product

469

109782 Scottish & Southern Energy plc

GB

Ferrybridge power station

GB

205,333.82

30.07.2004

30.07.2004

Overcapacity

659

194680 Scottish & Southern Energy plc

GB

Medway Power Ltd

GB

284,489.15

06.10.2003

07.11.2003

Overcapacity

672

206029 Scottish & Southern Energy plc

GB

Atlantic Electric & Gas Ltd

GB

136,188.19

28.04.2004

28.04.2004

Overcapacity

722

245372 Scottish & Southern Energy plc

GB

Atlantic Electricity and Gas Ltd

GB

134,548.24

04.05.2004

04.05.2004

Overcapacity

534

127460 Scottish Power plc

GB

Damhead Creek power station

GB

476,374.72 *

02.06.2004

02.06.2004

Geographic

281

80727 Scottish Power plc

GB

Rye House Power Station

GB

335,931.00

22.12.2000

08.03.2001

Market

121

66505 Sealed Air Limited

GB

Dolphin Packaging plc

GB

127,419.40

28.06.2000

31.08.2000

Market

387

92727 Serco Group plc

GB

AEA Technology plc's consulting


division

GB

123,531.41

29.06.2001

10.09.2001

R&D

106

64634 Severn Trent plc

GB

UK Waste Management Ltd

GB

612,903.20

05.06.2000

30.09.2000

Overcapacity

34

57790 Shanks Group plc

GB

Waste Management Nederland BV NL

340,491.80

26.01.2000

10.03.2000

Market

262

79724 Shire Pharmaceuticals Group plc

GB

BioChem Pharma Inc.

CA

4,563,200.00

11.12.2000

11.05.2000

R&D

104

64526 Signet Group plc

GB

Marks & Morgan

US

170,212.80

01.06.2000

31.07.2000

Market

448

GB

Lynx Group plc

GB

343,669.87

19.12.2001

04.03.2002

Convergence

94

63776 Skanska AB

SE

Selmer AS

NO

282,398.79

13.04.2000

09.06.2000

Market

183

73492 Skanska AB

SE

Kvaerner Construction Group


Limited

GB

579,944.02

29.08.2000

02.11.2000

Overcapacity

SE

Willy Vogel AG

DE

77,305.82

04.05.2004

08.07.2004

Product

82,169.02

09.05.2001

09.05.2001

Product

946

104378 Skandia Insurance Co., Ltd

244966 SKF AB

882

90717 Smith & Nephew plc

GB

Westaim Biomedical Corp's US and US


Canadian Burns Dressing Business

463

108143 Smith & Nephew plc

GB

Oratec Interventions Inc

US

353,524.00

14.02.2002

22.03.2002

R&D

712

232846 Smith & Nephew plc

GB

Midland Medical Technologies Ltd

GB

147,364.65

12.03.2004

05.05.2004

R&D

GB

Block Drug Company Inc.

US

1,540,915.00

09.10.2000

16.01.2001

Product

222

76060 Smithkline Beecham plc

547

131989 Smiths Group plc

GB

Heimann Systems GmbH

DE

367,921.53

01.10.2001

02.12.2002

Product

875

85684 Smiths Group plc

GB

Barringer Technologies Inc.

US

99,934.08

09.03.2001

11.05.2001

Product

956

287296 Smiths Group plc

GB

Integrated Aerospace Inc.

US

84117.00

19.10.2004

24.11.2004

Product

942

233226 Smiths Group plc

GB

Dynamic Gunver Technologies LLC US

85,445.40

15.03.2004

04.05.2004

R&D

944

242958 Smiths Group plc

GB

TRAK Communications Inc

US

94329.00

26.04.2004

26.04.2004

R&D

US

103,278.70

22.02.2000

08.03.2000

Product

31

57594 Smiths Industries plc

GB

Marconi Actuation Systems Inc.

196

74608 Smiths Industries plc

GB

TI Group plc

GB

3,118,666.23

18.09.2000

04.12.2000

Product

202

75271 Smiths Industries plc

GB

Fairchild Defense

US

118,063.75

27.09.2000

30.10.2000

Product

475

111154 South African Breweries plc

GB

Miller Brewing Company

US

5,653,760.00

30.05.2002

09.07.2002

Market

521

124038 Spectris plc

GB

Philips Analytical BV

NL

150,000.00

17.07.2002

18.09.2002

Product

229

76574 Spirent plc

GB

Net-HOPPER Systems Inc

US

110,494.50

17.10.2000

10.11.2000

Market

191

74287 Spirent plc

GB

Zarak Systems Corporation

US

470,221.78

07.09.2000

01.08.2001

Product

249
88

78378 Spirent plc

GB

Hekimian Laboratories Inc.

US

1,760,062.50

16.11.2000

19.12.2000

Product

63697 Stora Enso Oyj

FI

Consolidated Papers Inc.

US

5,025,510.20

22.02.2000

01.09.2000

Overcapacity

505

117753 Svenska Cellulosa AB

SE

Verpackung + Display Stabernack


Jr Partner GmbH & Co. KG

DE

131,000.00

30.07.2002

30.07.2002

Product

289

82028 Svenska Cellulosa AB

SE

Away From Home's tissue


operations

US

904,995.00

22.01.2001

22.01.2001

Overcapacity

434

102408 Svenska Cellulosa AB

SE

Encore Paper Company Inc

US

104,640.80

21.11.2001

21.11.2001

Overcapacity

436

102800 Svenska Cellulosa AB

SE

Cartoinvest SpA

IT

472,000.00

20.11.2001

18.12.2001

Overcapacity

694

215952 Svenska Cellulosa AB

SE

Carter Holt Harvey Ltd's tissue


business

NZ

551,839.21

26.03.2004

25.04.2004

Overcapacity

42

58418 Sdra Cell AB

SE

Norske Skog AS' Tofte pulp plant

NO

207,623.44

23.03.2000

01.07.2000

Product

703

227705 Tate & Lyle plc

GB

McNeil Nutritionals' Alabama-based US


sucralose manufacturing plant

111,863.20

19.02.2004

30.04.2004

Geographic

587

145100 Taylor Nelson Sofres plc

GB

NFO WorldGroup Inc.

US

382,365.00

14.05.2003

11.07.2003

Market

894

101851 Taylor Nelson Sofres plc

GB

TES/Rapid Chek Reporting

US

84,105.30

08.11.2001

20.11.2001

Product

818

57363 Taylor Nelson Sofres plc

GB

Competitive Media Reporting

US

91,666.70

09.10.2000

09.10.2000

Overcapacity

292

82205 Taylor Woodrow plc

GB

Bryant Group plc

GB

1,047,969.55

22.01.2004

16.03.2001

Overcapacity

651

187490 Taylor Woodrow plc

GB

Wilson Connolly Holdings plc

GB

695,995.63

01.09.2003

16.01.2004

Overcapacity

213

75680 Tele2 AB

SE

BaltCom GSM

LV

315,381.99

03.10.2000

03.10.2000

Market

655

191166 Tele2 AB

SE

UTA Telekom AG

AT

213,000.00

22.09.2003

08.03.2004

Market

893

101509 Tele2 AB

SE

FORA Telecom BV's Russian


operations

RU

88,862.62

14.11.2001

30.11.2001

Market

920

150581 Tele2 AB

SE

Alpha Telecom (UK) Ltd

GB

85,629.53

17.02.2003

17.02.2003

Overcapacity

443

103786 Teleca AB

SE

AU-System AB

SE

146,277.52

10.12.2001

11.02.2002

R&D

226

76380 Telefonaktiebolaget LM Ericsson

SE

Microwave Power Devices Inc.

US

117,440.00

13.10.2000

27.11.2000

R&D

157

72193 Telelogic AB

SE

Quality Systems & Software Inc.

US

133,364.26

08.08.2000

12.09.2000

Product

326

86687 Telenor ASA

NO

COMSAT mobile communications

US

130,293.60

27.03.2001

14.01.2001

Market

367

90499 Telia AB

SE

Sonera Oyj

FI

7,450,000.00

26.03.2202

09.11.2002

Market

532

127203 TeliaSonera AB

SE

Orange A/S

DK

605,800.00

09.07.2004

11.10.2004

Overcapacity

519

122552 Tesco plc

GB

HIT

PL

653,355.36

04.07.2002

19.07.2002

Market

559

135533 Tesco plc

GB

T&S Stores plc

GB

579,787.78 *

30.10.2002

09.01.2003

Market

54861 Tesco plc

GB

Somerfield plc's 45 larger stores

GB

500,000.00

26.01.2000

26.01.2000

Overcapacity

551

133133 Tesco plc

GB

Kipa Kitle Pazarlama Ticaret ve


Gida Sanayi AS

TR

109,090.91

27.02.2003

11.11.2003

Overcapacity

949

265857 Trans-Siberian Gold plc

GB

Angarskaya Proizvodstvennaya
Kompaniya AS OOO

RU

75360.00

22.07.2004

30.11.2004

Overcapacity

168

72759 Tullow Oil plc

GB

BP Amoco's Southern North Sea


assets

GB

330,393.66

31.07.2000

25.08.2000

Overcapacity

714

236126 Tullow Oil plc

GB

Energy Africa Ltd

ZA

414,900.00 *

04.05.2004

04.08.2004

Overcapacity

384

92487 Ultraframe plc

GB

Four Seasons Group

US

144,656.52

26.06.2001

17.07.2001

Market

369

90808 Unite Group plc

GB

Unilodge Holdings (UK) Ltd

GB

179,930.94

01.06.2001

20.06.2001

Product

640

179865 United Business Media plc

GB

Aprovia UK Ltd

GB

111,570.07

21.07.2003

21.07.2003

Geographic

884

91114 United Business Media plc

GB

Allison-Fisher International Inc.

US

91,504.49

01.06.2001

27.06.2001

Geographic

890

95428 United Business Media plc

GB

Roper Starch Worldwide

US

96,958.40

03.08.2001

03.09.2001

Geographic

182

73487 UPM-Kymmene Oyj

FI

Repap Enterprises Inc.

CA

1,010,000.00

29.08.2000

16.10.2000

Product

365

90442 UPM-Kymmene Oyj

FI

G Haindl'sche Papierfabriken KGaA DE

3,850,000.00

29.05.2001

30.11.2001

Product

833
605
72

64122 Vattenfall Oy
155307 Vestas Wind Systems A/S
61243 Volvo AB

FI

Hmeenlinnan Energia Oy

FI

84,934.90

04.07.2000

04.07.2000

Overcapacity

DK

Neg Micon A/S

DK

336,108.87

12.12.2003

31.05.2004

Overcapacity

SE

Mack

US

1,860,000.00

25.04.2000

03.01.2001

Product

431

102027 Vosper Thornycroft Holdings plc

GB

Merlin Communications Group Ltd

GB

151,803.13

14.11.2001

03.12.2001

R&D

719

242264 VPC AB

SE

Suomen Arvopaperikeskus Oy

FI

114,552.77

22.04.2004

30.11.2004

Overcapacity

614

160473 Waitrose Ltd

GB

Wm Morrison Supermarkets plc's


15 stores

GB

236,069.90

25.03.2004

08.08.2004

Overcapacity

GB

Hanson Waste Management

GB

288,093.50

22.12.2000

31.01.2001

Market

FI

Scanfil Oyj

FI

329,000.00

26.02.2002

01.10.2002

Product

279
452

80696 Waste Recycling Group plc


105472 Wecan Electronics Oyj

499

116697 Westbury plc

GB

Prowting plc

GB

307,540.03

17.05.2002

27.06.2002

Geographic

654

190005 Whitbread plc

GB

Premier Lodge Ltd

GB

764,624.40

20.07.2004

24.07.2004

Geographic

SE

Postfastigheter AB

SE

286,699.79

02.10.2001

03.12.2001

Product

417

99862 Wihlborgs Fastigheter AB (old)

671

205927 Wilson Bowden plc

GB

Ward Homes Group Ltd

GB

100,846.71

14.11.2003

14.11.2003

Geographic

689

213877 Wm Morrison Supermarkets plc

GB

Safeway plc

GB

6,146,890.82

15.12.2003

08.03.2004

Overcapacity

537

127974 Wolseley Centers Ltd

GB

Brooks Manson

GB

188,714.77

19.08.2002

30.08.2002

Geographic

429,218.04

23.05.2001

02.07.2001

Market

76,205.29

01.12.2003

01.12.2003

Market

364

90292 Wolseley plc

GB

Westburne Group Inc., The

CA / US

936

209569 Wolseley plc

GB

Tobler Management Holding AG

CH

55209 Wolseley plc

GB

Terry Companies

US

102,459.00

11.01.2000

11.01.2000

Product

486

113604 Wolseley plc

GB

Clayton Acquisition Company

US

123,519.00

18.04.2002

18.04.2002

Product

726

246688 Wolseley plc

GB

Brooks Group Ltd

IE

183,000.00 *

30.07.2004

31.08.2004

Product

613

160406 Wolseley plc

GB

Pinault Bois et Materiaux SA

FR

565,000.00

30.04.2003

07.07.2003

Overcapacity

710

232034 Wolverhampton & Dudley


Breweries plc

GB

Wizard Inns Ltd

GB

135,887.75

14.06.2004

14.06.2004

Geographic

74

61916 WPP Group plc

GB

Young & Rubicam Inc.

US

5,479,295.36

12.05.2000

4.10.2000

Geographic

402

96227 WPP Group plc

GB

Tempus Group plc

GB

616,640.70

20.08.2001

06.12.2001

Market

498

116593 WPP Group plc

GB

Cordiant Communications Group


plc

GB

381,456.60

19.06.2003

01.08.2003

Product

358

89433 WSP Group plc

GB

Jacobson & Widmark AB

SE

112,545.02

11.05.2001

20.07.2001

Market

206

75319 Wyevale Garden Centres plc

GB

Country Gardens plc

GB

213,647.56

25.09.2000

08.11.2000

Overcapacity

430

101985 Wrtsil Oyj Abp

FI

John Crane-Lips

GB

353,567.30

30.01.2002

15.04.2002

Product

645

181572 Xstrata plc

GB

Las Bambas copper project

PE

100,405.80

31.08.2004

31.08.2004

Product

458

107171 Xstrata plc

GB

Glencore International AG's


Australian and South African coal
businesses

AU / ZA

2,824,750.00

20.02.2002

20.03.2002

Overcapacity

570

138394 Xstrata plc

GB

MIM Holdings Ltd

AU

2,875,093.69

07.04.2003

30.06.2003

Overcapacity

636

176719 YIT-Yhtym Oyj

FI

ABB Ltd's Building Systems


business in the Nordic countries,
the Baltics and Russia

DK / EE / FI /
LT / LV / NO /
RU / SE

169,200.00

04.07.2003

29.08.2003

Convergence

Appendix D1: Example of SAS code (T-test) used in relation to daily stock prices.
T-test:
/*We start by creating a library called skrivb*/
libname skriveb 'C:\Documents and Settings\Louise Mller\skrivebord\';
/*We import our excel dataset into SAS and save this file in our library using
the name Geog. This is the dataset we use
when estimating the betas as a result of regressing the stock returns on the
market returns.*/
data skriveb.GEOG;
set GEOG;
/*This is the dataset containing the market returns in the relevant time
periods to each stock.*/
data skriveb.geogrm;
set geogrm;
/*This is the dataset containing the individual stock returns.*/
data skriveb.geogra;
set geogra;
/*Here we start the IML procedure using matrices in the calculations.*/
proc iml;
/*We want to use the dataset containing both market returns and stock returns
and we add all the numbers in
the matrix called z. It is a 261x55 matrix due to the estimation period of
T=250 days and the event window of
+/- 5 days.*/
use skriveb.geog;
T=250;
read all var _num_ into z;
z=z[1:261,];
print z;
/*Now we estimate beta by creating a 55x2 matrix containing the alpha and beta
in the 55 regressions we generate due
to the 55 companies included into this group. At the end we also construct the
two vectors A and B which contains
the alphas and betas and are use later on in the calculations.*/
beta=J(55,2,0);
count=0;
do i=1 to 110 by 2;
X=J(T,2,1);
Y=J(T,1,1);

do j=1 to T;
if abs(z[j,i])> 0 then do;
count=count+1;
X[j,]=J(1,1,1)||z[j,i];
Y[j,1]=z[j,i+1];
end;
end;
X=X[1:count,];
Y=Y[1:count,];
count=0;
beta[(i+1)/2,]=(INV(X`*X)*X`*y)`;
end;
print beta;
A=beta[,1];
B=beta[,2];
Print B;
Print A;
/*Here we create the M matrix which contains the market returns in the event
window in relation to the 55 companies.*/
use skriveb.geogrm;
T=11;
read all var _num_ into m;
M=m[251:261,];
print m;
/*By use of the A, B and M matrices we calculate the expected return for each
company at all 11 days in the event window.*/
RMny=J(11,55,0);
do i=1 to 55 by 1;
bet=B[i];
RM=M[,i];
Al=A[i];
RMny[,i]=RM*bet+Al;
end;
print RMny;
/*Here we create the AK matrix which contains the actual stock returns inside
the event window in relation to
the 55 companies.*/
use skriveb.geogra;
T=11;
read all var _num_ into AK;
AK=AK[251:261,];
print AK;
/*Now we can calculate the Abnormal Return (AR)for each stock at all 11 days
inside the event window, which is the
difference between the actual return and the expected return.*/

AR=AK-RMny;
print AR;
/*Below we calculate the Cumulative Abnormal Returns (CAR), which are the sum
of the different company's returns
during the event window.*/
CAR=J(1,55,0);
do i=1 to 55 by 1;
CAR[,i]=sum(AR[,i]);
end;
print CAR;
CART=J(55,1,0);
CART=CAR`;
print CART;
create GeoAR1 from AR;
append from AR;
create GeoCAR1 from CAR;
append from CAR;
/*Finally we calculate the average Abnormal Returns and the average CAR.*/
ARmean=CAR/11;
print ARmean;
CARmean=sum(ARmean);
print CARmean;
/*We need to estimate the CAR variance before we can test whether or not any
Abnormal Returns are generated. We start
by generating the ARES matrix containing the actual returns during the
estimation period and afterwards the MES matrix
is generated containing the market returns during the estimation period.*/
use skriveb.geogra;
T=250;
read all var _num_ into AKES;
AKES=AKES[1:250,];
print AKES;
use skriveb.geogrm;
T=250;
read all var _num_ into MES;
MES=MES[1:250,];
print MES;
/*By use of the A, B and MES matrices we calculate the expected return for
each company during all 250 days
within the event period.*/
RMES=J(250,55,0);
do i=1 to 19 by 1;
bet=B[i];

RME=MES[,i];
Al=A[i];
RMES[,i]=RME*bet+Al;
end;
print RMES;
/*Generating the squared Abnormal Returns during the estimation period.*/
AKSQ=(AKES-RMES)##2;
Print AKSQ;
/*Sum up the squared error terms and find the estimated variance for each
company.*/
VarError=J(1,55,0);
do i=1 to 55 by 1;
VarError[,i]=(1/(250-2))*(sum(AKSQ[,i]));
end;
print VarError;
VarCAR=J(1,55,0);
do i=1 to 55 by 1;
VarCAR=(5+5+1)*VarError;
end;
print VarCAR;
VarCARmean=(1/(55##2))*(sum(VarCAR));
print VarCARmean;
Tobs=(CARmean/(VarCARmean)##0.5);
print Tobs;
pvalue=2*probnorm(-abs(Tobs));
print pvalue;
quit;

Appendix D2: Example of SAS code (Rank) used in relation to daily stock prices.
Rank test:
/*We start by creating a library called skrivb*/
libname skriveb 'C:\Documents and Settings\Louise Mller\skrivebord\';
/*We import our excel dataset into SAS and save this file in our library using
the name Geog. This is the dataset we use
when estimating the betas as a result of regressing the stock returns on the
market returns.*/
data skriveb.GEOG;
set GEOG;
/*This is the dataset containing the market returns in the relevant time
periods to each stock.*/
data skriveb.geogrm;
set geogrm;
/*This is the dataset containing the individual stock returns.*/
data skriveb.geogra;
set geogra;
/*Here we start the IML procedure using matrices in the calculations.*/
proc iml;
/*We want to use the dataset containing both market returns and stock returns
and we add all the numbers in
the matrix called z. It is a 261x55 matrix due to the estimation period of
T=250 days and the event window of
+/- 5 days.*/
use skriveb.geog;
T=250;
read all var _num_ into z;
z=z[1:250,];
/*Now we estimate beta by creating a 55x2 matrix containing the alpha and beta
in the 55 regressions we generate due
to the 55 companies included into this group. At the end we also construct the
two vectors A and B which contains
the alphas and betas and are use later on in the calculations.*/
beta=J(55,2,0);
count=0;
do i=1 to 110 by 2;
X=J(T,2,1);
Y=J(T,1,1);

do j=1 to T;
if abs(z[j,i])> 0 then do;
count=count+1;
X[j,]=J(1,1,1)||z[j,i];
Y[j,1]=z[j,i+1];
end;
end;
X=X[1:count,];
Y=Y[1:count,];
count=0;
beta[(i+1)/2,]=(INV(X`*X)*X`*y)`;
end;
print beta;
A=beta[,1];
B=beta[,2];
/*Here we create the M matrix which contains the market returns over 1M period
in relation to the 55 companies.*/
use skriveb.GeogRm;
T=11;
read all var _num_ into m;
M=m[251:261,];
/*By use of the A, B and M matrices we calculate the expected return for each
company at all 11 days during the event
period.*/
RMny=J(11,55,0);
do i=1 to 55 by 1;
bet=B[i];
RM=M[,i];
Al=A[i];
RMny[,i]=RM*bet+Al;
end;
/*Here we create the AK matrix which contains the actual stock returns over 11
days in relation to
the 55 companies.*/
use skriveb.GeogRa;
T=11;
read all var _num_ into AK;
AK=AK[251:261,];
/*Now we can calculate the Abnormal Return (AR)for each stock at all 11 days
during the event period,
which is the difference between the actual return and the expected return.*/
AR=AK-RMny;
/*We create a matrix that rank the excess returns created in the matrix
above.*/

RankAR=J(11,55,0);
do i=1 to 55 by 1;
RankAR[,i]=rank(AR[,i]);
end;
/*We count the number of times the ith stock return is zero in each jth row.*/
ARnon=J(11,55,0);
do i=1 to 55 by 1;
do j=1 to 11 by 1;
if AK[j,i]>0 then ARnon[j,i]=0;
else if AK[j,i]<0 then ARnon[j,i]=0;
else ARnon[j,i]=1;
end;
end;
/*Counting the number of missing stock returns in each ith column.*/
ARcounti=J(1,55,0);
Do i=1 to 55 by 1;
ARcounti[,i]=ARnon[+,i];
end;
RankARm=J(11,55,0);
do i=1 to 55 by 1;
RankARm[,i]=RankAR[,i]/(1+(11-ARcounti[,i]));
end;
/*We subtract the average rank (one half plus half the number of observed
returns)from the ranked excess returns.*/
Dsign=J(11,55,0);
do i=1 to 55 by 1;
ARM=RankARm[,i];
Dsign[,i]=ARM-0.5;
end;
/*Counting the number of missing stock returns in each jth row.*/
ARcountj=J(11,1,0);
Do j=1 to 11 by 1;
ARcountj[j,]=ARnon[j,+];
end;
/*We calculate the standard deviation.*/
sumj=J(11,1,0);
avej=J(11,1,0);
do j=1 to 11 by 1;
sumj[j,]=sum(Dsign[j,]);
avej[j,]=sumj[j,]/sqrt(55-ARcountj[j,]);
end;
Stddev=sqrt((1/11)*sum(avej##2));
print Stddev;
/*Calculation of the test statistic.*/

Tobs=((1/sqrt(55))*sum(Dsign[11,]))/Stddev;
print Tobs;
pvalue=2*probnorm(-abs(Tobs));
print pvalue;
quit;

Appendix D3: Example of SAS code (Sign) used in relation to daily stock prices.
Sign test:
/*We start by creating a library called skrivb*/
libname Skriveb 'C:\Documents and Settings\Louise Mller\skrivebord';
/*We import our excel dataset into SAS and save this file in our library using
the name Geog. This is the dataset we use
when estimating the betas as a result of regressing the stock returns on the
market returns.*/
data Skriveb.Geog;
set Geog;
/*This is the dataset containing the market returns in the relevant time
periods to each stock.*/
data Skriveb.GeogRm;
set GeogRm;
/*This is the dataset containing the individual stock returns.*/
data Skriveb.GeogRa;
set GeogRa;
/*Here we start the IML procedure using matrices in the calculations.*/
proc iml;
/*We want to use the dataset containing both market returns and stock returns
and we add all the numbers in
the matrix called z. It is a 261x55 matrix due to the estimation period of
T=250 days.*/
use skriveb.Geog;
T=250;
read all var _num_ into z;
z=z[1:250,];
/*Now we estimate beta by creating a 55x2 matrix containing the alpha and beta
in the 55 regressions we generate due
the the 55 companies included into this group. Calculating beta we adjust for
trade-to-trade.
At the end we also construct the two vectors A and B which contains the alphas
and betas and are
use later on in the calculations.*/
beta=J(55,2,0);
count=0;
do i=1 to 110 by 2;
X=J(T,2,1);
Y=J(T,1,1);

do j=1 to T;
if abs(z[j,i])> 0 then do;
count=count+1;
X[j,]=J(1,1,1)||z[j,i];
Y[j,1]=z[j,i+1];
end;
end;
X=X[1:count,];
Y=Y[1:count,];
count=0;
beta[(i+1)/2,]=(INV(X`*X)*X`*y)`;
end;
print beta;
A=beta[,1];
B=beta[,2];
/*Here we create the M matrix which contains the market returns at all 261
days in the
estimation period and in the event window in relation to the 55 companies.*/
use skriveb.GeogRm;
T=261;
read all var _num_ into m;
M=m[1:261,];
/*By use of the A, B and M matrices we calculate the expected return for each
company at all 261 days in the
estimation period and the event window.*/
RMny=J(261,55,0);
do i=1 to 55 by 1;
bet=B[i];
RM=M[,i];
Al=A[i];
RMny[,i]=RM*bet+Al;
end;
/*Here we create the AK matrix which contains the actual stock returns inside
the estimation period and
the event window in relation to the 55 companies.*/
use skriveb.GeogRa;
T=261;
read all var _num_ into AK;
AK=AK[1:261,];
/*Now we can calculate the Abnormal Return (AR)for each stock at all 261 days
in the estimation period and
the event window, which is the difference between the actual return and the
expected return.*/
AR=AK-RMny;

/*We find the median within each coloum in the AR matrix*/


P=J(1,55,0);
do i=1 to 55 by 1;
P[,i]=median(AR[,i]);
end;
Dsign=J(261,55,0);
do i=1 to 55 by 1;
PM=P`[i];
ARM=AR[,i];
Dsign[,i]=ARM-PM;
end;
/*We assign the sign of the excess returns.*/
ARsign=J(261,55,0);
do i=1 to 55 by 1;
do j=1 to 261 by 1;
if Dsign[j,i]>0 then ARsign[j,i]=1;
else if Dsign[j,i]<0 then ARsign[j,i]=-1;
else ARsign[j,i]=0;
end;
end;
/*We count the number of times the ith stock return is zero in each jth row.*/
ARnon=J(261,55,0);
do i=1 to 55 by 1;
do j=1 to 261 by 1;
if AK[j,i]>0 then ARnon[j,i]=0;
else if AK[j,i]<0 then ARnon[j,i]=0;
else ARnon[j,i]=1;
end;
end;
ARcount=J(261,1,0);
Do j=1 to 261 by 1;
ARcount[j,]=ARnon[j,+];
end;
/*We calculate the standard deviation.*/
sumj=J(261,1,0);
avej=J(261,1,0);
do j=1 to 261 by 1;
sumj[j,]=sum(ARsign[j,]);
avej[j,]=sumj[j,]/sqrt(55-ARcount[j,]);
end;
Stddev=sqrt((1/261)*sum(avej##2));
print Stddev;
/*Calculation of the test statistic.*/
Tobs=((1/sqrt(55))*sum(ARsign[256,]))/Stddev;
print Tobs;

/*Finally the calculation of the p-value.*/


pvalue=2*probnorm(-abs(Tobs));
print pvalue;
quit;

Appendix D4: Example of SAS code (Gen. Sign) used in relation to daily stock
prices.
Generalized Sign test:
/*We start by creating a library called skrivb*/
libname Skriveb 'C:\Documents and Settings\Louise Mller\skrivebord';
/*We import our excel dataset into SAS and save this file in our library using
the name Geog. This is the dataset we use
when estimating the betas as a result of regressing the stock returns on the
market returns.*/
data Skriveb.Geog;
set Geog;
/*This is the dataset containing the market returns in the relevant time
periods to each stock.*/
data Skriveb.GeogRm;
set GeogRm;
/*This is the dataset containing the individual stock returns.*/
data Skriveb.GeogRa;
set GeogRa;
/*Here we start the IML procedure using matrices in the calculations.*/
proc iml;
/*We want to use the dataset containing both market returns and stock returns
and we add all the numbers in
the matrix called z. It is a 250x55 matrix due to the estimation period of
T=250 days.*/
use skriveb.Geog;
T=250;
read all var _num_ into z;
z=z[1:250,];
/*Now we estimate beta by creating a 55x2 matrix containing the alpha and beta
in the 55 regressions we generate due
the the 55 companies included into this group. In calculation beta we adjust
for trade-to-trade.
At the end we also construct the two vectors A and B which contains the alphas
and betas and are
use later on in the calculations.*/
beta=J(55,2,0);
count=0;
do i=1 to 110 by 2;
X=J(T,2,1);

Y=J(T,1,1);
do j=1 to T;
if abs(z[j,i])> 0 then do;
count=count+1;
X[j,]=J(1,1,1)||z[j,i];
Y[j,1]=z[j,i+1];
end;
end;
X=X[1:count,];
Y=Y[1:count,];
count=0;
beta[(i+1)/2,]=(INV(X`*X)*X`*y)`;
end;
print beta;
A=beta[,1];
B=beta[,2];
/*Here we create the M matrix which contains the market returns at all 261
days in the
estimation period and in the event window in relation to the 55 companies.*/
use skriveb.GeogRm;
T=261;
read all var _num_ into m;
M=m[1:261,];
/*By use of the A, B and M matrices we calculate the expected return for each
company at all 261 days in the
estimation period and the event window.*/
RMny=J(261,55,0);
do i=1 to 55 by 1;
bet=B[i];
RM=M[,i];
Al=A[i];
RMny[,i]=RM*bet+Al;
end;
/*Here we create the AK matrix which contains the actual stock returns inside
the estimation period and
the event window in relation to the 55 companies.*/
use skriveb.GeogRa;
T=261;
read all var _num_ into AK;
AK=AK[1:261,];
/*Now we can calculate the Abnormal Return (AR)for each stock at all 261 days
in the estimation period and
the event window, which is the difference between the actual return and the
expected return.*/
AR=AK-RMny;

/*Calculation of CAR for each stock during the event window as well as CAAR.*/
CARevent=J(1,55,0);
do i=1 to 55 by 1;
do j=251 to 261 by 1;
CARevent[,i]=sum(AR[j,i]);
end;
end;
CAARevent=sum(CARevent)/55;
/*We find the expected fraction of positive abnormal returns in the estimation
period. */
ARsign=J(250,55,0);
do i=1 to 55 by 1;
do j=1 to 250 by 1;
if AR[j,i]>0 then ARsign[j,i]=1;
else if AR[j,i]<0 then ARsign[j,i]=0;
else ARsign[j,i]=0;
end;
end;
Sumsigni=J(1,55,0);
do i=1 to 55 by 1;
Sumsigni[,i]=sum(ARsign[,i])/250;
end;
probpos=sum(Sumsigni)/55;
/*Calculation of w (The number of stock in the event window where the CAR >
0.)*/
CARsign=J(1,55,0);
do i=1 to 55 by 1;
if CARevent[,i]>0 then CARsign[,i]=1;
else if CARevent[,i]<0 then CARsign[,i]=0;
else CARsign[,i]=0;
end;

CARcount=sum(CARsign);
print CARcount;
/*Calculation of the test statistic.*/
Zobs=(CARcount-(55*probpos))/(((55*probpos)*(1-probpos))##0.5);
print Zobs;
pvalue=2*probnorm(-abs(Zobs));
print pvalue;
quit;

Appendix D5: Example of SAS code (ANOVA) used in relation to daily stock prices.
ANOVA:
proc print
data=FT;
/* this will print out the raw data for checking */
title2 'raw data';
proc sort
by type;

data=FT;

proc means
data=FT;
/* get simple summary statistics (sample size, sample mean and SD) */
title2 'simple summary statistics';
by type; /* statistics computed for each strategy type... */
var AR; /* ... on the variable 'Abnormal Return' */

proc plot
data=FT;
/* request a plot of the raw data */
title2 'plot of the raw data';
plot AR*type;
proc anova

data=FT;

title2 'Analysis';
class type;
/* class statement indicates that 'Strategy type' is a factor */
model AR = type;
/* assumes 'strategy type' influences 'Abnormal Return' */
means type /hovtest ;
/*Levene's test irt equal variances*/
means type /tukey ;
run;
proc glm
data=FT;
title2 'Proc glm Analysis';
/* same as 'proc anova' except
'glm' allows residual plots but gives more junk output */
class type;
model AR = type;
output
out=fit p=yhat r=resid;
/* store fitted values and fitted residuals
in dataset called 'fit' for later use */
proc univariate
data=fit plot normal;
var resid;
/* plot qq-plot of fitted residuals */
proc plot;
plot resid*type;
plot resid*yhat;
/* two residual plots to check
independence and constant variance */
run;

Appendix E1: Example of SAS code (T-test) used in relation to acc. fig.
T-test:
/*We start by creating a library called skrivb*/
libname skriveb 'C:\Documents and Settings\Louise Mller\skrivebord\';
/*We import our excel dataset into SAS and save this file in our library using
the name Geog.*/
data skriveb.Geog;
set Geog;
/*Here we start the IML procedure using matrices in the calculations.*/
proc iml;
/*We want to use the dataset containing the abnormal performance for each
company and we add all the numbers into
the matrix called z. It is a 1x51 matrix due to the estimation period of one
year before the event.*/
use skriveb.Geog;
T=1;
read all var _num_ into z;
z=z[1:1,];
print z;

/*We calculate the CAR.*/


CAR=sum(z);
print CAR;
create Geocar1 from CAR;
append from CAR;
/* We need to calculate the standard deviation.*/
dif=z##2;
print dif;
sumdif=sum(dif);
print sumdif;
stddev=sqrt((1/(51-1))*sumdif);
print stddev;
/*Calculating the observator and the p-value.*/
Tobs=(CAR/(stddev)##0.5);
print Tobs;
pvalue=2*probnorm(-abs(Tobs));

print pvalue;
quit;
title 'Normality Geographic (ROA - Event)';
legend2 FRAME CFRAME=ligr CBORDER=black POSITION=center;
proc capability data=GeoROA1;
histogram
/ normal(color=yellow w=3)
midpoints = 3.4 to 3.6 by 0.025
vscale
= count
cfill
= blue
legend
= legend2
cframe
= ligr
nospeclegend ;
inset lsl usl
/ cfill = ywh;
inset n mean (5.2) cpk (5.2) / cfill = ywh;
run;

Appendix E2: Example of SAS code (Wilcoxon) used in relation to acc. fig.
Wilcoxon Signed Rank test:
/*We start by creating a library called skrivb*/
libname skriveb 'C:\Documents and Settings\Louise Mller\skrivebord';
/*We import our excel dataset into SAS and save this file in our library using
the name Geog.*/
data skriveb.Geog;
set Geog;
/*Here we start the IML procedure using matrices in the calculations.*/
proc iml;
/*We want to use the dataset containing the abnormal performance for each
company and we add all the numbers into
the matrix called z. It is a 1x51 matrix due to the estimation period of one
year before the event.*/
use skriveb.Geog;
T=1;
read all var _num_ into z;
z=z[1:1,];
print z;

/*We create a matrix consisting of 1 and -1 to save the signs of the Abnormal
Performance.*/
APSign=J(1,51,0);
do i=1 to 51 by 1;
do j=1 to 1 by 1;
if z[j,i]>0 then APSign[j,i]=1;
else if z[j,i]<0 then APSign[j,i]=-1;
else APSign[j,i]=0;
end;
end;
print APSign;
Countzero=51-sum(Abs(APSign));
print Countzero;
/*We create a matrix with the absolute values of each difference in z.*/
Absz=J(1,51,0);
Absz=Abs(z);
print Absz;
/*We create a matrix that rank the absolute values created in the matrix
above.*/
Rankz=J(1,51,0);
Rankz=rank(Absz);
print Rankz;

Rankb=Rankz-countzero;
print Rankb;
/*We create a matrix where the signed ranks are created,
based on elementvise multiplikation of the sign matrix, APsign, and
the rank matrix, Rankb.*/
SignedRank=J(1,51,0);
SignedRank=APSign#Rankb;
print SignedRank;
/*We create a matrix containing only the rank with positive signs.*/
SignedRankPos=J(1,51,0);
do i=1 to 51 by 1;
do j=1 to 1 by 1;
SignedRankPos[j,i]=SignedRank[j,i];
if SignedRank[j,i] <0 then SignedRankPos[j,i]= .;
if SignedRank[j,i]>0 then SignedRankPos[j,i]=SignedRank[j,i];
end;
end;
print SignedRankPos;
/*We create a matrix containing only the rank with negative signs.*/
SignedRankNeg=J(1,51,0);
do i=1 to 51 by 1;
do j=1 to 1 by 1;
SignedRankNeg[j,i]=SignedRank[j,i];
if SignedRank[j,i] <0 then SignedRankNeg[j,i]= SignedRank[j,i];
if SignedRank[j,i]>0 then SignedRankNeg[j,i]= .;
end;
end;
print SignedRankNeg;
/*We generate the sum of the ranks with positive signs and the sum of the
ranks
with negative signs*/
SignedRankPosSum=sum(SignedRankPos);
print SignedRankPosSum;
SignedRankNegSum=sum(SignedRankNeg);
print SignedRankNegSum;
/*We generate the sum of ranks, which is the one we test against Ho: MyW=0.*/
SignedRankSUM=SignedRankPosSum+SignedRankNegSum;
print SignedRankSUM;
/*We calculate the st.dev on the total sample.*/
k=1*51;
stdSum=sqrt(((k*(k+1)*((2*k)+1))/6));
print stdSum;
/*We calculate the Zobs using a std.normal distribution.*/
Zobs=((SignedRankSum-0)-0.5)/stdSum;
print Zobs;

pvalue=2*probnorm(-abs(Zobs));
print pvalue;
quit;

Appendix E3: Example of SAS code (ANOVA) used in relation to acc. fig.
ANOVA:
proc print
data=FT;
/* this will print out the raw data for checking */
title2 'raw data';
proc sort
by type;

data=FT;

proc means
data=FT;
/* get simple summary statistics (sample size, sample mean and SD) */
title2 'simple summary statistics';
by type; /* statistics computed for each strategy type... */
var AR; /* ... on the variable 'Abnormal Return' */

proc plot
data=FT;
/* request a plot of the raw data */
title2 'plot of the raw data';
plot AR*type;
proc anova

data=FT;

title2 'Analysis';
class type;
/* class statement indicates that 'Strategy type' is a factor */
model AR = type;
/* assumes 'strategy type' influences 'Abnormal Return' */
means type /hovtest ;
/*Levene's test irt equal variances*/
means type /tukey ;
run;
proc glm
data=FT;
title2 'Proc glm Analysis';
/* same as 'proc anova' except
'glm' allows residual plots but gives more junk output */
class type;
model AR = type;
output
out=fit p=yhat r=resid;
/* store fitted values and fitted residuals
in dataset called 'fit' for later use */
proc univariate
data=fit plot normal;
var resid;
/* plot qq-plot of fitted residuals */
proc plot;
plot resid*type;
plot resid*yhat;
/* two residual plots to check
independence and constant variance */
run;

Appendix F: Normality in AR for the Geographic strategy (Daily Stock)

300

250

200
C
o
u 150
n
t
100

50

0
- 0. 138

- 0. 088

- 0. 038

0. 012
Abnor m
al

Cur ve:

0. 063

0. 113

0. 163

Ret uns

Nor m
al ( M
u=- 45E- 5 Si gm
a=0. 0258)

800
700
600
500
C
o
u 400
n
t
300
200
100
0
- 0. 16

- 0. 12

- 0. 08

- 0. 04

0. 00

Abnor m
al
Cur ve:

0. 04

0. 08

Ret ur ns

Nor m
al ( M
u=- 76E- 5 Si gm
a=0. 0238)

0. 12

0. 16

1750

1500

1250
C
o 1000
u
n
t
750

500

250

0
- 0. 210

- 0. 165

- 0. 120

- 0. 075

- 0. 030
Abnor m
al

Cur ve:

0. 015

0. 060

0. 105

0. 150

Ret ur ns

Nor m
al ( M
u=- 81E- 5 Si gm
a=0. 0229)

3000

2500

2000
C
o
u 1500
n
t
1000

500

0
- 0. 168

- 0. 120

- 0. 072

- 0. 024
Abnor m
al

Cur ve:

0. 024

0. 072

Ret ur ns

Nor m
al ( M
u=- 7E- 4 Si gm
a=0. 0222)

0. 120

0. 168

0. 195

7000

6000

5000
C
o 4000
u
n
t 3000

2000

1000

0
- 0. 315

- 0. 240

- 0. 165

- 0. 090
Abnor m
al

Cur ve:

- 0. 015

0. 060

Ret ur ns

Nor m
al ( M
u=- 38E- 5 Si gm
a=0. 0214)

0. 135

0. 210

Appendix G: Normality in AR for the Geographic strategy (Acc. Fig.)

30

25

20

C
o
u 15
n
t

10

0
- 55

- 45

- 35

- 25

- 15

-5

RO
A ( EBI T)
Cur ve:

Nor m
al ( M
u=- 2. 307 Si gm
a=8. 0612)

100

80

C
o
u
n
t

60

40

20

0
- 60

- 48

- 36

- 24

- 12

RO
A ( EBI T)
Cur ve:

Nor m
al ( M
u=- 0. 646 Si gm
a=7. 1884)

12

24

36

140

120

100

C 80
o
u
n
t
60

40

20

0
- 60

- 48

- 36

- 24

- 12

12

24

36

15

25

35

RO
A ( EBI T)
Cur ve:

Nor m
al ( M
u=- 0. 252 Si gm
a=6. 4345)

140

120

100

C 80
o
u
n
t
60

40

20

0
- 45

- 35

- 25

- 15

-5

RO
A ( EBI T)
Cur ve:

Nor m
al ( M
u=- 0. 323 Si gm
a=6. 1499)

25

20

C
o
u
n
t

15

10

0
- 10. 0

- 7. 5

- 5. 0

- 2. 5

0. 0

2. 5

5. 0

RO
A ( EBI TDA)
Cur ve:

Nor m
al ( M
u=- 0. 991 Si gm
a=2. 9627)

50

40

C
o
u
n
t

30

20

10

0
- 8. 75

- 6. 25

- 3. 75

- 1. 25

1. 25

RO
A ( EBI TDA)
Cur ve:

Nor m
al ( M
u=- 0. 304 Si gm
a=2. 6001)

3. 75

6. 25

100

80

C
o
u
n
t

60

40

20

0
- 18

- 15

- 12

-9

-6

-3

12

10

14

RO
A ( EBI TDA)
Cur ve:

Nor m
al ( M
u=- 0. 214 Si gm
a=2. 959)

120

100

80

C
o
u 60
n
t

40

20

0
- 26

- 22

- 18

- 14

- 10

-6

-2

RO
A ( EBI TDA)
Cur ve:

Nor m
al ( M
u=- 0. 419 Si gm
a=3. 4433)

45

40

35

30

C
25
o
u
n
t 20

15

10

0
- 60

- 48

- 36

- 24

- 12

12

RO
S ( EBI T)
Cur ve:

Nor m
al ( M
u=- 3. 418 Si gm
a=12. 223)

60

50

40

C
o
u 30
n
t

20

10

0
- 52. 5

- 37. 5

- 22. 5

- 7. 5

7. 5

RO
S ( EBI T)
Cur ve:

Nor m
al ( M
u=0. 4978 Si gm
a=12. 172)

22. 5

37. 5

70

60

50

C 40
o
u
n
t
30

20

10

0
- 54

- 42

- 30

- 18

-6

18

30

42

18

30

42

RO
S ( EBI T)
Cur ve:

Nor m
al ( M
u=0. 6947 Si gm
a=10. 711)

100

80

C
o
u
n
t

60

40

20

0
- 54

- 42

- 30

- 18

-6

RO
S ( EBI T)
Cur ve:

Nor m
al ( M
u=0. 4137 Si gm
a=10. 25)

25

20

C
o
u
n
t

15

10

0
- 12

-8

-4

12

RO
S ( EBI TDA)
Cur ve:

Nor m
al ( M
u=- 0. 78 Si gm
a=4. 4215)

80

70

60

50
C
o
u 40
n
t
30

20

10

0
- 12

-6

12

18

RO
S ( EBI TDA)
Cur ve:

Nor m
al ( M
u=0. 4503 Si gm
a=5. 2257)

24

30

36

120

100

80

C
o
u 60
n
t

40

20

0
- 12

-6

12

18

24

30

36

21

27

33

RO
S ( EBI TDA)
Cur ve:

Nor m
al ( M
u=0. 3772 Si gm
a=4. 8396)

120

100

80

C
o
u 60
n
t

40

20

0
- 15

-9

-3

15

RO
S ( EBI TDA)
Cur ve:

Nor m
al ( M
u=0. 1377 Si gm
a=4. 8041)

40

35

30

25
C
o
u 20
n
t
15

10

0
- 75

- 60

- 45

- 30

- 15

15

15

CF
Cur ve:

Nor m
al ( M
u=- 2. 555 Si gm
a=17. 468)

80

70

60

50
C
o
u 40
n
t
30

20

10

0
- 75

- 60

- 45

- 30

- 15

CF
Cur ve:

Nor m
al ( M
u=- 1. 151 Si gm
a=13. 231)

120

100

80

C
o
u 60
n
t

40

20

0
- 90

- 75

- 60

- 45

- 30

- 15

15

30

CF
Cur ve:

Nor m
al ( M
u=- 0. 274 Si gm
a=11. 869)

140

120

100

C 80
o
u
n
t
60

40

20

0
- 98

- 83

- 68

- 53

- 38

- 23

-8

CF
Cur ve:

Nor m
al ( M
u=- 0. 22 Si gm
a=11. 52)

23

38

53

35

30

25

C 20
o
u
n
t
15

10

0
- 0. 60

- 0. 45

- 0. 30

- 0. 15

0. 00

0. 15

0. 30

TQ
Cur ve:

Nor m
al ( M
u=- 0. 018 Si gm
a=0. 1305)

60

50

40

C
o
u 30
n
t

20

10

0
- 0. 75

- 0. 60

- 0. 45

- 0. 30

- 0. 15

0. 00

TQ
Cur ve:

Nor m
al ( M
u=- 0. 041 Si gm
a=0. 1994)

0. 15

0. 30

0. 45

90

80

70

60

C
50
o
u
n
t 40

30

20

10

0
- 0. 8

- 0. 6

- 0. 4

- 0. 2

0. 0

0. 2

0. 4

0. 6

0. 8

TQ
Cur ve:

Nor m
al ( M
u=- 0. 004 Si gm
a=0. 23)

100

80

C
o
u
n
t

60

40

20

0
- 0. 60

- 0. 45

- 0. 30

- 0. 15

0. 00

0. 15

0. 30

0. 45

TQ
Cur ve:

Nor m
al ( M
u=- 89E- 5 Si gm
a=0. 2327)

0. 60

0. 75

0. 90

Appendix H: Assumptions regarding the ANOVA for daily stock prices (Event)
Histogram
0.475+*
.
.*
.**
.**
.****
.****
.********
.********************
.*******************************************
.****************************************
.*********************
.********
.*****
.****
.*
.**
-0.375+*
----+----+----+----+----+----+----+----+--* may represent up to 4 counts

#
2

Boxplot
*

4
5
8
14
14
29
78
171
160
82
31
18
15
3
6
4

*
0
0
0
0
|
|
+--+--+
+-----+
|
|
0
0
0
0
*

Normal Probability Plot


0.475+
*
|
|
**
|
***
|
*** +++
|
****+++
|
+**+
|
+++***
|
++******
|
********
|
********
|
******++
|
****+++
|
***+
|
++****
|+++ *
| ***
-0.375+*
+----+----+----+----+----+----+----+----+----+----+
-2
-1
0
+1
+2

The ANOVA Procedure


Levene's Test for Homogeneity of AR Variance
ANOVA of Squared Deviations from Group Means

Source

DF

Sum of
Squares

Mean
Square

type
Error

7
636

0.00402
0.4493

0.000575
0.000706

F Value

Pr > F

0.81

0.5763

The ANOVA Procedure


Level of
type

Converge
Geograph
MP
Market
Overcapa
Product
R&D
RC

19
55
196
79
121
117
19
38

--------------AR------------Mean
Std Dev
0.02935646
-0.00492231
0.00149897
-0.00350992
0.01578923
0.00488057
-0.02009893
0.00462876

0.14687735
0.09558854
0.11200080
0.10591460
0.10102435
0.11625572
0.12304931
0.13597387

Appendix I1: Assumptions regarding the ANOVA for acc. fig., ROA (EBIT) (2Y)
Histogram
17.5+*
.*****
.***************
.**********************************************
.*************************
-7.5+******
.***
.**
.*
.*
-32.5+*
.
.
.
.
-57.5+
.
.
.*
.*
-82.5+
.
.
.
.*
-107.5+*
----+----+----+----+----+----+----+----+----+* may represent up to 6 counts

#
4
26
89
275
145
33
16
9
5
2
2

Boxplot
0
0
|
+--+--+
+-----+
|
0
0
*
*
*

1
1

*
*

1
2

*
*

Normal Probability Plot


17.5+
++++
*
|
+++++ ********
|
++++********
|
**************
|
*********+++
-7.5+
**** +++++
|
****+++++
|
***+++
| +***+
|++ *
-32.5+ **
|
|
|
|
-57.5+
|
|
| *
|*
-82.5+
|
|
|
|*
-107.5+*
+----+----+----+----+----+----+----+----+----+----+
-2
-1
0
+1
+2
The ANOVA Procedure
Levene's Test for Homogeneity of AR Variance
ANOVA of Squared Deviations from Group Means

Source

DF

Sum of
Squares

Mean
Square

type
Error

7
603

3790344
4.2615E8

541478
706721

F Value

Pr > F

0.77

0.6159

The ANOVA Procedure


Level of
type

Converge
Geograph
MP
Market
Overcapa
Product
R&D
RC

19
51
185
64
116
121
18
37

--------------AR------------Mean
Std Dev
2.87415087
-0.75525556
-2.03066935
-4.77993093
-0.25446803
-0.57651447
-4.97628001
-0.94497767

5.0395557
4.8603017
11.6193627
17.5729752
11.2136965
6.2230525
8.7717223
8.0533557

t Tests (LSD) for AR


NOTE: This test controls the Type I comparisonwise error rate, not the experimentwise error
rate.

Alpha
0.05
Error Degrees of Freedom
603
Error Mean Square
113.9071
Critical Value of t
1.96391

Comparisons significant at the 0.05 level are indicated by ***.

type
Comparison
Converge
Converge
Converge
Converge
Converge
Converge
Converge
Overcapa
Overcapa
Overcapa
Overcapa
Overcapa
Overcapa
Overcapa
Product
Product
Product
Product
Product
Product
Product
Geograph
Geograph
Geograph
Geograph
Geograph
Geograph
Geograph
RC
RC
RC
RC
RC
RC
RC
MP
MP
MP
MP

Overcapa
Product
Geograph
RC
MP
Market
R&D
Converge
Product
Geograph
RC
MP
Market
R&D
Converge
Overcapa
Geograph
RC
MP
Market
R&D
Converge
Overcapa
Product
RC
MP
Market
R&D
Converge
Overcapa
Product
Geograph
MP
Market
R&D
Converge
Overcapa
Product
Geograph

Difference
Between
Means
3.129
3.451
3.629
3.819
4.905
7.654
7.850
-3.129
0.322
0.501
0.691
1.776
4.525
4.722
-3.451
-0.322
0.179
0.368
1.454
4.203
4.400
-3.629
-0.501
-0.179
0.190
1.275
4.025
4.221
-3.819
-0.691
-0.368
-0.190
1.086
3.835
4.031
-4.905
-1.776
-1.454
-1.275

95% Confidence
Limits
-2.059
-1.722
-2.004
-2.097
-0.145
2.178
0.956
-8.316
-2.402
-3.021
-3.267
-0.706
1.262
-0.588
-8.623
-3.046
-3.321
-3.569
-0.996
0.964
-0.895
-9.263
-4.022
-3.678
-4.337
-2.040
0.090
-1.525
-9.735
-4.648
-4.306
-4.716
-2.689
-0.494
-1.992
-9.954
-4.259
-3.905
-4.590

8.316
8.623
9.263
9.735
9.954
13.130
14.745
2.059
3.046
4.022
4.648
4.259
7.789
10.032
1.722
2.402
3.678
4.306
3.905
7.443
9.695
2.004
3.021
3.321
4.716
4.590
7.959
9.967
2.097
3.267
3.569
4.337
4.860
8.164
10.055
0.145
0.706
0.996
2.040

***
***

***

***

***

MP
MP
MP
Market
Market
Market
Market
Market
Market
Market
R&D
R&D
R&D
R&D
R&D
R&D
R&D

RC
Market
R&D
Converge
Overcapa
Product
Geograph
RC
MP
R&D
Converge
Overcapa
Product
Geograph
RC
MP
Market

-1.086
2.749
2.946
-7.654
-4.525
-4.203
-4.025
-3.835
-2.749
0.196
-7.850
-4.722
-4.400
-4.221
-4.031
-2.946
-0.196

-4.860
-0.290
-2.230
-13.130
-7.789
-7.443
-7.959
-8.164
-5.789
-5.396
-14.745
-10.032
-9.695
-9.967
-10.055
-8.121
-5.788

2.689
5.789
8.121
-2.178
-1.262
-0.964
-0.090
0.494
0.290
5.788
-0.956
0.588
0.895
1.525
1.992
2.230
5.396

***
***
***
***

***

The ANOVA Procedure


Bonferroni (Dunn) t Tests for AR
NOTE: This test controls the Type I experimentwise error rate, but it generally has a higher Type
II error rate than Tukey's for all pairwise comparisons.

Alpha
0.05
Error Degrees of Freedom
603
Error Mean Square
113.9071
Critical Value of t
3.13772

Comparisons significant at the 0.05 level are indicated by ***.

type
Comparison
Converge
Converge
Converge
Converge
Converge
Converge
Converge
Overcapa
Overcapa
Overcapa
Overcapa
Overcapa
Overcapa
Overcapa
Product
Product
Product
Product

Overcapa
Product
Geograph
RC
MP
Market
R&D
Converge
Product
Geograph
RC
MP
Market
R&D
Converge
Overcapa
Geograph
RC

Difference
Between
Means
3.129
3.451
3.629
3.819
4.905
7.654
7.850
-3.129
0.322
0.501
0.691
1.776
4.525
4.722
-3.451
-0.322
0.179
0.368

Simultaneous
95% Confidence
Limits
-5.159
-4.813
-5.371
-5.632
-3.163
-1.095
-3.164
-11.417
-4.029
-5.126
-5.632
-2.190
-0.689
-3.762
-11.715
-4.674
-5.412
-5.923

11.417
11.715
12.630
13.271
12.972
16.403
18.865
5.159
4.674
6.127
7.013
5.742
9.740
13.205
4.813
4.029
5.770
6.660

Product
Product
Product
Geograph
Geograph
Geograph
Geograph
Geograph
Geograph
Geograph
RC
RC
RC
RC
RC
RC
RC
MP
MP
MP
MP
MP
MP
MP
Market
Market
Market
Market
Market
Market
Market
R&D
R&D
R&D
R&D
R&D
R&D
R&D

MP
Market
R&D
Converge
Overcapa
Product
RC
MP
Market
R&D
Converge
Overcapa
Product
Geograph
MP
Market
R&D
Converge
Overcapa
Product
Geograph
RC
Market
R&D
Converge
Overcapa
Product
Geograph
RC
MP
R&D
Converge
Overcapa
Product
Geograph
RC
MP
Market

1.454
4.203
4.400
-3.629
-0.501
-0.179
0.190
1.275
4.025
4.221
-3.819
-0.691
-0.368
-0.190
1.086
3.835
4.031
-4.905
-1.776
-1.454
-1.275
-1.086
2.749
2.946
-7.654
-4.525
-4.203
-4.025
-3.835
-2.749
0.196
-7.850
-4.722
-4.400
-4.221
-4.031
-2.946
-0.196

-2.461
-0.973
-4.060
-12.630
-6.127
-5.770
-7.042
-4.021
-2.261
-4.960
-13.271
-7.013
-6.660
-7.422
-4.945
-3.081
-5.592
-12.972
-5.742
-5.370
-6.572
-7.117
-2.107
-5.323
-16.403
-9.740
-9.379
-10.311
-10.751
-7.606
-8.738
-18.865
-13.205
-12.860
-13.402
-13.655
-11.214
-9.131

5.370
9.379
12.860
5.371
5.126
5.412
7.422
6.572
10.311
13.402
5.632
5.632
5.923
7.042
7.117
10.751
13.655
3.163
2.190
2.461
4.021
4.945
7.606
11.214
1.095
0.689
0.973
2.261
3.081
2.107
9.131
3.164
3.762
4.060
4.960
5.592
5.323
8.738

The ANOVA Procedure


Tukey's Studentized Range (HSD) Test for AR
NOTE: This test controls the Type I experimentwise error rate.

Alpha
0.05
Error Degrees of Freedom
603
Error Mean Square
113.9071
Critical Value of Studentized Range 4.30147

Comparisons significant at the 0.05 level are indicated by ***.

type

Difference
Between

Simultaneous
95% Confidence

Comparison
Converge
Converge
Converge
Converge
Converge
Converge
Converge
Overcapa
Overcapa
Overcapa
Overcapa
Overcapa
Overcapa
Overcapa
Product
Product
Product
Product
Product
Product
Product
Geograph
Geograph
Geograph
Geograph
Geograph
Geograph
Geograph
RC
RC
RC
RC
RC
RC
RC
MP
MP
MP
MP
MP
MP
MP
Market
Market
Market
Market
Market
Market
Market
R&D
R&D
R&D
R&D
R&D
R&D
R&D

Overcapa
Product
Geograph
RC
MP
Market
R&D
Converge
Product
Geograph
RC
MP
Market
R&D
Converge
Overcapa
Geograph
RC
MP
Market
R&D
Converge
Overcapa
Product
RC
MP
Market
R&D
Converge
Overcapa
Product
Geograph
MP
Market
R&D
Converge
Overcapa
Product
Geograph
RC
Market
R&D
Converge
Overcapa
Product
Geograph
RC
MP
R&D
Converge
Overcapa
Product
Geograph
RC
MP
Market

Means
3.129
3.451
3.629
3.819
4.905
7.654
7.850
-3.129
0.322
0.501
0.691
1.776
4.525
4.722
-3.451
-0.322
0.179
0.368
1.454
4.203
4.400
-3.629
-0.501
-0.179
0.190
1.275
4.025
4.221
-3.819
-0.691
-0.368
-0.190
1.086
3.835
4.031
-4.905
-1.776
-1.454
-1.275
-1.086
2.749
2.946
-7.654
-4.525
-4.203
-4.025
-3.835
-2.749
0.196
-7.850
-4.722
-4.400
-4.221
-4.031
-2.946
-0.196

Limits
-4.906
-4.560
-5.096
-5.343
-2.916
-0.827
-2.827
-11.163
-3.896
-4.953
-5.439
-2.068
-0.529
-3.502
-11.461
-4.540
-5.241
-5.730
-2.341
-0.814
-3.801
-12.354
-5.955
-5.598
-6.821
-3.859
-2.069
-4.679
-12.981
-6.820
-6.467
-7.200
-4.760
-2.869
-5.297
-12.725
-5.621
-5.250
-6.409
-6.932
-1.958
-5.069
-16.135
-9.580
-9.221
-10.118
-10.539
-7.457
-8.464
-18.528
-12.945
-12.601
-13.121
-13.360
-10.961
-8.857

11.163
11.461
12.354
12.981
12.725
16.135
18.528
4.906
4.540
5.955
6.820
5.621
9.580
12.945
4.560
3.896
5.598
6.467
5.250
9.221
12.601
5.096
4.953
5.241
7.200
6.409
10.118
13.121
5.343
5.439
5.730
6.821
6.932
10.539
13.360
2.916
2.068
2.341
3.859
4.760
7.457
10.961
0.827
0.529
0.814
2.069
2.869
1.958
8.857
2.827
3.502
3.801
4.679
5.297
5.069
8.464

Appendix I2: Assumptions for the ANOVA for acc. fig. (trans.), ROA (EBIT) (2Y)
Histogram
4.5+**
.************
.*************************
1.5+**************************************
.************************
.**************************************
-1.5+***********************************
.*******************
.*******
-4.5+***
.**
.
-7.5+
.*
.*
-10.5+*
----+----+----+----+----+----+----+--* may represent up to 3 counts

#
5
35
75
112
71
113
105
57
19
9
5

Boxplot
|
|
|
+-----+
| + |
*-----*
+-----+
|
|
|
|

2
1
2

Normal Probability Plot


4.5+
+++++**
|
+*********
|
*******
1.5+
*******
|
****+
|
*****
-1.5+
*******
|
******
|
*****+
-4.5+ ++***
|+***
|
-7.5+
|**
|*
-10.5+*
+----+----+----+----+----+----+----+----+----+----+
-2
-1
0
+1
+2

0
0
0

The ANOVA Procedure


Levene's Test for Homogeneity of AR Variance
ANOVA of Squared Deviations from Group Means

Source

DF

Sum of
Squares

Mean
Square

type
Error

7
603

713.0
48874.0

101.9
81.0513

F Value

Pr > F

1.26

0.2696

The ANOVA Procedure


Level of
type

Converge
Geograph
MP
Market
Overcapa
Product
R&D
RC

19
51
185
64
116
121
18
37

--------------AR------------Mean
Std Dev
0.85546119
-0.26142165
-0.35385705
-0.76670170
0.17936621
-0.13549294
-1.21932024
-0.15389194

1.77377238
1.78824405
2.23883942
2.66916466
2.02564957
1.95099207
2.43751551
2.34181541

The ANOVA Procedure


t Tests (LSD) for AR
NOTE: This test controls the Type I comparisonwise error rate, not the experimentwise error
rate.

Alpha
0.05
Error Degrees of Freedom
603
Error Mean Square
4.667856
Critical Value of t
1.96391

Comparisons significant at the 0.05 level are indicated by ***.

type
Comparison
Converge
Converge
Converge
Converge
Converge
Converge
Converge
Overcapa
Overcapa
Overcapa
Overcapa

Overcapa
Product
RC
Geograph
MP
Market
R&D
Converge
Product
RC
Geograph

Difference
Between
Means
0.6761
0.9910
1.0094
1.1169
1.2093
1.6222
2.0748
-0.6761
0.3149
0.3333
0.4408

95% Confidence
Limits
-0.3740
-0.0561
-0.1882
-0.0235
0.1871
0.5136
0.6792
-1.7262
-0.2365
-0.4679
-0.2721

1.7262
2.0380
2.2069
2.2573
2.2315
2.7307
3.4704
0.3740
0.8662
1.1344
1.1537

***
***
***

Overcapa
Overcapa
Overcapa
Product
Product
Product
Product
Product
Product
Product
RC
RC
RC
RC
RC
RC
RC
Geograph
Geograph
Geograph
Geograph
Geograph
Geograph
Geograph
MP
MP
MP
MP
MP
MP
MP
Market
Market
Market
Market
Market
Market
Market
R&D
R&D
R&D
R&D
R&D
R&D
R&D

MP
Market
R&D
Converge
Overcapa
RC
Geograph
MP
Market
R&D
Converge
Overcapa
Product
Geograph
MP
Market
R&D
Converge
Overcapa
Product
RC
MP
Market
R&D
Converge
Overcapa
Product
RC
Geograph
Market
R&D
Converge
Overcapa
Product
RC
Geograph
MP
R&D
Converge
Overcapa
Product
RC
Geograph
MP
Market

0.5332
0.9461
1.3987
-0.9910
-0.3149
0.0184
0.1259
0.2184
0.6312
1.0838
-1.0094
-0.3333
-0.0184
0.1075
0.2000
0.6128
1.0654
-1.1169
-0.4408
-0.1259
-0.1075
0.0924
0.5053
0.9579
-1.2093
-0.5332
-0.2184
-0.2000
-0.0924
0.4128
0.8655
-1.6222
-0.9461
-0.6312
-0.6128
-0.5053
-0.4128
0.4526
-2.0748
-1.3987
-1.0838
-1.0654
-0.9579
-0.8655
-0.4526

0.0307
0.2854
0.3238
-2.0380
-0.8662
-0.7787
-0.5825
-0.2777
-0.0246
0.0119
-2.2069
-1.1344
-0.8155
-0.8088
-0.5642
-0.2635
-0.1539
-2.2573
-1.1537
-0.8343
-1.0238
-0.5786
-0.2912
-0.2054
-2.2315
-1.0357
-0.7145
-0.9641
-0.7635
-0.2025
-0.1822
-2.7307
-1.6068
-1.2870
-1.4891
-1.3017
-1.0282
-0.6794
-3.4704
-2.4736
-2.1557
-2.2848
-2.1212
-1.9131
-1.5847

1.0357
1.6068
2.4736
0.0561
0.2365
0.8155
0.8343
0.7145
1.2870
2.1557
0.1882
0.4679
0.7787
1.0238
0.9641
1.4891
2.2848
0.0235
0.2721
0.5825
0.8088
0.7635
1.3017
2.1212
-0.1871
-0.0307
0.2777
0.5642
0.5786
1.0282
1.9131
-0.5136
-0.2854
0.0246
0.2635
0.2912
0.2025
1.5847
-0.6792
-0.3238
-0.0119
0.1539
0.2054
0.1822
0.6794

***
***
***

***

***
***

***
***

***
***
***

The ANOVA Procedure


Bonferroni (Dunn) t Tests for AR
NOTE: This test controls the Type I experimentwise error rate, but it generally has a higher Type
II error rate than Tukey's for all pairwise comparisons.

Alpha
0.05
Error Degrees of Freedom
603
Error Mean Square
4.667856
Critical Value of t
3.13772

Comparisons significant at the 0.05 level are indicated by ***.

type
Comparison
Converge
Converge
Converge
Converge
Converge
Converge
Converge
Overcapa
Overcapa
Overcapa
Overcapa
Overcapa
Overcapa
Overcapa
Product
Product
Product
Product
Product
Product
Product
RC
RC
RC
RC
RC
RC
RC
Geograph
Geograph
Geograph
Geograph
Geograph
Geograph
Geograph
MP
MP

Overcapa
Product
RC
Geograph
MP
Market
R&D
Converge
Product
RC
Geograph
MP
Market
R&D
Converge
Overcapa
RC
Geograph
MP
Market
R&D
Converge
Overcapa
Product
Geograph
MP
Market
R&D
Converge
Overcapa
Product
RC
MP
Market
R&D
Converge
Overcapa

Difference
Between
Means
0.6761
0.9910
1.0094
1.1169
1.2093
1.6222
2.0748
-0.6761
0.3149
0.3333
0.4408
0.5332
0.9461
1.3987
-0.9910
-0.3149
0.0184
0.1259
0.2184
0.6312
1.0838
-1.0094
-0.3333
-0.0184
0.1075
0.2000
0.6128
1.0654
-1.1169
-0.4408
-0.1259
-0.1075
0.0924
0.5053
0.9579
-1.2093
-0.5332

Simultaneous 95%
Confidence Limits
-1.0017
-0.6819
-0.9040
-0.7052
-0.4238
-0.1489
-0.1550
-2.3539
-0.5660
-0.9467
-0.6982
-0.2696
-0.1095
-0.3187
-2.6638
-1.1958
-1.2551
-1.0058
-0.5742
-0.4166
-0.6288
-2.9227
-1.6132
-1.2919
-1.3564
-1.0209
-0.7872
-0.8827
-2.9389
-1.5798
-1.2577
-1.5715
-0.9797
-0.7672
-0.9007
-2.8425
-1.3361

2.3539
2.6638
2.9227
2.9389
2.8425
3.3933
4.3046
1.0017
1.1958
1.6132
1.5798
1.3361
2.0016
3.1160
0.6819
0.5660
1.2919
1.2577
1.0110
1.6790
2.7964
0.9040
0.9467
1.2551
1.5715
1.4208
2.0129
3.0136
0.7052
0.6982
1.0058
1.3564
1.1646
1.7777
2.8165
0.4238
0.2696

MP
MP
MP
MP
MP
Market
Market
Market
Market
Market
Market
Market
R&D
R&D
R&D
R&D
R&D
R&D
R&D

Product
RC
Geograph
Market
R&D
Converge
Overcapa
Product
RC
Geograph
MP
R&D
Converge
Overcapa
Product
RC
Geograph
MP
Market

-0.2184
-0.2000
-0.0924
0.4128
0.8655
-1.6222
-0.9461
-0.6312
-0.6128
-0.5053
-0.4128
0.4526
-2.0748
-1.3987
-1.0838
-1.0654
-0.9579
-0.8655
-0.4526

-1.0110
-1.4208
-1.1646
-0.5703
-0.8083
-3.3933
-2.0016
-1.6790
-2.0129
-1.7777
-1.3959
-1.3560
-4.3046
-3.1160
-2.7964
-3.0136
-2.8165
-2.5392
-2.2613

0.5742
1.0209
0.9797
1.3959
2.5392
0.1489
0.1095
0.4166
0.7872
0.7672
0.5703
2.2613
0.1550
0.3187
0.6288
0.8827
0.9007
0.8083
1.3560

The ANOVA Procedure


Tukey's Studentized Range (HSD) Test for AR
NOTE: This test controls the Type I experimentwise error rate.

Alpha
0.05
Error Degrees of Freedom
603
Error Mean Square
4.667856
Critical Value of Studentized Range 4.30147

Comparisons significant at the 0.05 level are indicated by ***.

type
Comparison
Converge
Converge
Converge
Converge
Converge
Converge
Converge
Overcapa
Overcapa
Overcapa
Overcapa
Overcapa
Overcapa
Overcapa
Product
Product
Product

Overcapa
Product
RC
Geograph
MP
Market
R&D
Converge
Product
RC
Geograph
MP
Market
R&D
Converge
Overcapa
RC

Difference
Between
Means
0.6761
0.9910
1.0094
1.1169
1.2093
1.6222
2.0748
-0.6761
0.3149
0.3333
0.4408
0.5332
0.9461
1.3987
-0.9910
-0.3149
0.0184

Simultaneous 95%
Confidence Limits
-0.9503
-0.6307
-0.8454
-0.6493
-0.3738
-0.0947
-0.0867
-2.3025
-0.5391
-0.9075
-0.6633
-0.2450
-0.0772
-0.2661
-2.6126
-1.1688
-1.2161

2.3025
2.6126
2.8641
2.8831
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Product
Product
Product
Product
RC
RC
RC
RC
RC
RC
RC
Geograph
Geograph
Geograph
Geograph
Geograph
Geograph
Geograph
MP
MP
MP
MP
MP
MP
MP
Market
Market
Market
Market
Market
Market
Market
R&D
R&D
R&D
R&D
R&D
R&D
R&D

Geograph
MP
Market
R&D
Converge
Overcapa
Product
Geograph
MP
Market
R&D
Converge
Overcapa
Product
RC
MP
Market
R&D
Converge
Overcapa
Product
RC
Geograph
Market
R&D
Converge
Overcapa
Product
RC
Geograph
MP
R&D
Converge
Overcapa
Product
RC
Geograph
MP
Market

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