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Lessons from a case study for Greek banking M&A negotiations

Article  in  Management Decision · September 2009

DOI: 10.1108/00251740910984550

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MD
47,8 Lessons from a case study for
Greek banking M&A negotiations
Nikolaos Konstantopoulos
1300 Department of Business Administration, University of the Aegean,
Chios, Greece
Received November 2007 Damianos Sakas
Revised July 2008
Accepted July 2008
Department of Computer Science, University of the Peloponnese,
Piraeus, Greece, and
Yiannis Triantafyllopoulos
Department of Business Administration, University of the Aegean,
Chios, Greece

Abstract
Purpose – The purpose of this paper is to examine the factor “Staff’s beliefs, attitudes and social
representations” vis-à-vis the part it plays during the negotiation process in the effort of the two leaders
of the Greek banking branch to merge.
Design/methodology/approach – The codification is attempted by means of software, so as to
clarify the trends for negotiations in win-win conditions. Data were collected by the negotiation
process of two large banking companies.
Findings – The paper concludes that the private or public character of each banking organization
involved in the negotiation process of aiming at a merger will affect its strategic choices in relation to
the role played by human beliefs and professional attitudes during the negotiations. Additionally, the
research has pointed out some elements that are explained and justified by the existing circumstances
in the particular banking area. The fear of change, the stress, the insecurity and the loss of morale are
also pointed out as being significant factors.
Originality/value – The paper is based on research of two different sectors – private and public –
and how the employees of two organizations belonging to these sectors react and affect the result of
the merger.
Keywords Negotiating, Acquisitions and mergers, Human resource management, Greece, Banking
Paper type Research paper

Management Decision
Vol. 47 No. 8, 2009
pp. 1300-1312
q Emerald Group Publishing Limited
0025-1747
DOI 10.1108/00251740910984550
Introduction
The world credit system has gone through a process of restructuring and repositioning
both at the industry and organizational levels. The banking sector is in the centre of
this process. Bank mergers and acquisitions, globalization and internationalization of
their services and products, changes in their organizational structures, innovations in
their human resources practices, are just few of the examples of changes in the banking
institutions.
The authors would like to express their special thanks to Professor Gary D. Geroy, who acted as
“research outreach support emissary” on behalf of Emerald, coaching them to review this paper.
With his contribution and constructive suggestions, they managed not only to revise and submit
this paper in a structured form, but also to communicate their research more efficiently.
 However, until the early nineties, the Greek banking system was functioning in a Greek banking
status quo of rules and regulations, which constrained the development of an expanded M&A
and integrated bank structure. Hence, business suppleness was a difficult affair in
Greek banking (Andrikopoulou, 2002). negotiations
The changes in structure in the banking branch occurred mainly through
privatization and M&A processes, but frequently the outcome had limited control and
ability to act especially after conforming to dictates by EU directives (Angelis et al., 1301
2005).
At the same time expectations were created that banking in Europe had entered a
period of restructuring. One influence of the expectation for restructuring is the result
of the European Financial Market exerting pressure for an increase in the average bank
size (Gianopoulos, CFO Alpha Bank, 2006) so that they have bigger scope.
The number of Greek banks declined after 2002, from 20 to ten, with the basic
traders being: National Bank of Greece, Eurobank, Alpha, Emporiki Bank and Piraeus
Bank. In the banking branch, the moving force for the merger process was
privatization. All the previously mentioned banks have merged with smaller banks in
the Balkans. However, by consolidating their presence in a resurgent market they have
made themselves at the same time targets for larger European Union banks
(Andrikopoulou, 2002).

Guiding propositions
While M&A banking activity is on the rise, a positive outcome is not always assured.
Proposition: Our proposition is that the human factors (i.e. the administrative groups,
and specific HR circumstances – among others) often present issues of great potential
impediment to a successful M&A negotiation endeavour. The historic motive within
M&A’s negotiations was to engage scale economies, whose development and exploitation
presupposes the support of the corporations. Yet, the problems that may need to be
addressed in Bank M&A’s negotiation process frequently are not just the associated legal
and financial factors (the focus of traditional negotiations). In fact, an erroneous
assumption concerning the degree and type of support of the corporations’ human factors
can lead to ultimate failure of the M&A negotiation. Therefore, we suggest that another
critical dimension to be embraced in the negotiation is the human factor.
Given the previously mentioned proposition, an increased examination of the role
played by human factors in successful mergers and acquisitions negotiations within
the Greek Banking system is due. However, not only are human factors in the M&A
negotiation process an embodied influence in the negotiation procedure process itself –
they are critical to the successful post negotiation implementation of the M&A.
Proposition: It is comprehensible that the negotiation procedure itself – which
contributes to the merger between two banks – is a critical influence of the functional
ability of the specific branch to implement the outcome emerging from completion of
the M&A negotiation (Schraeder and Self, 2003).
Sitkin et al. (1996) suggest the negotiation process is the critical mediator between
the strategic decision about the merger of two banking organization – or the
acquisition of one bank by another – at one end of the M&A continuum, and the
operational results from the merger or acquisition at the other end of the continuum.
During this negotiation process, many important strategic decisions occur. As noted
MD previously, the negotiation process historically is dominated by the need to optimize
47,8 scale economies – a non-human factors orientation.
By embracing human factors’ considerations in the negotiation process,
consideration and awareness is attained regarding the role of human factors in the
implementation of the outcome of the negotiation of the M&A agreement.
Human resources (employee and top management behaviour) and the way they
1302 adapt, react and function in a M&A process and the implications for the success of
post-negotiation implimentation is an importan study issue for many researchers.

Problem for the study

Specific to the M&A phenomena in Greek banking, there are a number of things which
are not known. These include:
.
what human factors are important influences on the M&A negotiation process
occurring within Greek banking; and
.
what human factors are important influences on the ability to implement a
completed M&A negotiation within Greek banking.

Purpose of this essay

In this essay we report a case-study-form exploratory research which examined human
factors under the broad category of HR, for their role and influence in M&A negotiation
and implementation in Greek banking.
As way of introduction to the formulation and design of the study, it is useful
present a literature based overview of the influential dimensions that HR can bring to
the M&A process.

Implications of current research: the human resources considerations on

mergers and acquisitions in Greek banking
An analysis of current literature indicates that there are two distinct domains of
research. The first, examines man as another factor that may cause the failure of M&A.
This domain of inquiry attempts to evolve an explanation for man’s contibution for
probable breakdown and the appropriate strategies for success (Hunt, 1988). The
second domains examines how people are involved in the process – but does not
attempt to explain why a M&A was successful or unsuccessful. Rather these research
efforts try to fully comprehend the process. From the examination of these domains of
research in the literature, several dominant themes and notions emerged, are advanced,
and discussed in the following.
Napier et al. (1989) and Schuler and Jackson (2001) developed a context explaining
that the motives and the characteristics of the involved corporations are related with
the type of merger in connection with the degree of integration. Alternatively, the type
of merger will affect the place and the time where changes take place in the practices
where staff is involved. The three main variables in this context are:
(1) The type of merger (extension, collaborative or redesign).
(2) The practices and the policies of human resources.
(3) Results of the merger (financial performance, employee reactions, employee
performance).
These variables are also considered as strictly mutually dependent, that is, they can Greek banking
only function through their dependance. M&A
By analyzing thoroughly the previously mentioned, it appears that in the Greek
banking area the labour regime acts as one of the breaks of the system, since it negotiations
complicates the restructuring of the work-force, in case of merger or acquisition.
Among other influences, according to the EU rules, the administration is obliged to
warn the employed about what will happen in case of merger or acquisition and to 1303
negotiate with them the new working posts and the labour adjustments. If the
negotiations do not manage to lead to an agreement, then the companies act under the
current labour legislation (Andrikopoulou, 2002). According to the Greek labour
legislation the companies may dismiss up to 2 per cent of their staff every month, the
top limit being 30 people.
What is most important, though, as proven in various cases of M&A between credit
banks in Greece, and especially between public and private ones, is the degree of
willingness of the employed to cooperate, a factor that may influcence every
restructuring attempt to cancellation (Angelis et al., 2005).
Hollis (2002) adopts the view of Seth Leiber (CEO of The Center of Effective
Performance) that a substantial portion of the 75 per cent of the corporations that fail
(meaning that they do not produce the expected results) in a M&A, is due to problems
concerning human resources. The odd thing about it is the fact that although they are
expected and thus predictable, they are not mitigated and cause trouble. The same
applies to the Greek banking area, where the majority of M&As, even those considered
successful in the long run, needed such a long and time-consuming processes of
unification that had a negative effect on the goals of the institutions.
Example: A big private bank (A) – created after privatization – that acquires
another private bank (B) – creating a bank AB – for a price eight times its book value,
since the latter was launching products that were innovative for Greek standards (i.e.
internal consumer credit and financing professionals). However, they did not take good
stock of the situation and were overtaken by competition. At the same period a Trust
was created between a big insurance organization (C) and a foreign private bank (B) (it
is worth mentioning that it was the first banking enterprise established from scratch
after 30 years in Greece). The latter (CD) was planning to launch products to compete
the products of the acquired bank (B), aiming in fact at creating a number of branch
offices. And on top of all that, the trust, taking advantage of the insecurity and the
uncertainty created to the executives of the acquired bank during transition period, and
knowing its profitability and its innovative actions regarding the specific products,
managed to detach many of its basic administrative executives.
The threat of dismissal after a M&A often leads to disorganization, drop of
efficiency and of course the withdrawal of experienced executives. Krug (2003),
continuing the research of Walsh (1989) concluding that 70 per cent of high executives
withdraw within years of the M&A, resulting in increased withdrawals and moves of
high executives – even nine years after a merger or acquisition.
Further examination by Krug and Nigh (2001), resulted in identification of five main
reasons why an executive chooses to remain in an organization:
(1) Job satisfaction.
(2) Increased job status.
MD (3) Job security.
47,8 (4) Autonomy.
(5) Personal issues.
This is in contrast with the three main reasons which Krug and Nigh (2001) advanced
as to why an executive would choose to withdraw from his position:
1304 (1) Acquired company top management lack leadership and direction.
(2) Dishonesty and lacked morale.
(3) Treating the employees poorly.
In another example, an aggressive acquisition by a large private bank in 2000, towards
the second-larger bank of the private sector through the Stock Market, illustrates the
impact on human resources. In this case, the acquisition cost reached almost 655
million euro. Co-operation after the acquisition was bound to be effective. The acquired
bank was focusing on small and medium scale enterprises and owned several
subsidiary financial companies, such as a successful company of financial credit, that
the private bank did not possess an equal of at that time. On the other hand, the strong
point of the private bank was the quality of service rendered to consumers and large
enterprises.
According to market analysts, the outcome of this agreement was not at all positive
due to the conflict between different cultures in administrative level. The personnel of
the acquired bank were allowed to develop strong relationships with their clients, thus
following a much more liberal lending policy. On the contrary, the private bank,
through its structure, was following a more disciplined approach, the decisions being
taken by top executives and transmitted to lower levels, or at least had to be approved
by top administrative executives.
The result was the withdrawal of many middle-level executives of the acquired
bank seeking occupation to other organizations, or, in certain occasions, creating their
own competitive enterprises of financial credit. Because of the power of the trade union
of bank employees, the bank that resulted from the merger was not in a position to
discharge the extra personnel in time. As a consequence, the bank did not manage to
restructure properly the resulting branch office network (Angelis et al., 2005).
Stress is one of the most oftenly recognized reactions in M&A (Buono, 2003).
Because of the possibility of significant changes and losses, M&A is considered to be
very stressful. In a stress intensity scale of max 100, in such cases the number might
reach 100 (Siehl, 1990). However, it is not only the M&A that worries the employed, but
also the inability to anticipate when it will take place, the lack of positions of
employment, or other factors that prevent the employed to leave, causing even more
stress (Balmer and Dinnie, 1999).
Employee empowerment is one of the key management concepts of our days,
without this concept becoming part of the corporate culture. In order to make it
possible for managers to utilize empowerement concepts there have been developed
models based on an organizational and individual context (Geroy et al., 1998).
Each time an organization mergers with another, the employed feel they are losing
control over important matters relating with their lives. In an effort to surpass this
difficult phase, they put themselves under a lot of pressure, a fact which leads in turn to
lower productivity and lower job satisfaction (Davy et al., 1989).
 The buy-off of the 51 per cent of a public bank by a large private one in the context Greek banking
of expanding its activities and strengthening its position in the market, raised the M&A
market share of the latter from 12 to 20 per cent, but put a significant strain on the
cost-income ratio, thus narrowing the increase rate of earnings. The merger had good negotiations
results, since the top administrative executives appointed by the state were dismissed
from the beginning, leaving to the executives of the private sector the space to apply
their policy. 1305
However, part of the deal was that there were not going to be any job losses, which
entails a long and hard restructuring process, through which the best middle
administrative executives of both association were chosen, while the rest were either
repositioned or retrained.
But there were also asymmetries regarding the benefits towards the personnel. The
employees of the public bank had a subsidiary insurance fund, which was much
wealthier than that of their homologues in the private bank. The bank had to join the
two funds improving the benefits of its former personnel.
Finally, the merger was crowned with success but under conditions of strain due to
the long and time-consuming procedures. The effect showed almost two years later
when there was an effort to merge the resulting association with the largest public
bank of Greece; the executives coming from such a stressful process went against the
merger and, as a consequence, it was never completed.
Other studies (Schweiger et al., 1987) conclude that after M&A the employed operate
under a feeling of loss and insecurity. Often there are worries such as loss of identity,
obsession with survival matters, as well as the fact that their families put additional
strain in their behaviour.
The situation in question caused by insecure events taking place after M&A is
called Merger Syndrome (Marks and Mirvis, 2001). According to that, the employed are
experiencing conditions of sress and work so much on the matter that there is not any
time left for the company. In the Greek area, where the syndicalistic banking federation
is very powerful, the briefing of the employed in case of M&A was immediate and
detailed, especially where there was a public organization involved; the result was that
the employed were studying the issue too much, even in the case where the agreement
was not concluded, thus reducing their productivity.
However, the process of merger and acquisition is not always a negative experience
(Marks and Mirvis, 2001). Panchal and Cartwright (2001) concluded that the culture of
an enterprise effects the experience of stress. Companies with flexible culture had less
stress, while in those with complicated structure and a culture of superiority the
employed showed high levels of stress. Thereby, if these reactions are not handled
quickly and efficiently, the performance of the enterprise will have a negative effect
(Buono, 2003).
In the Greek banking area, there were examples of mergers between banking
organizations that had similar flexible procedures and staff. All three actual large
private organizations have been through successful mergers and acquisitions,
especially in the first years of their expansion.

The problem
From the previous discussion it can be concluded the factor of human resources’
behavior before and after merger, plays a significant role for the course of the
MD organization results from the merger. Our intention in this article is to report what was
47,8 learned regarding the importance of this factor during the M&A negotiations that takes
place before the merger of two banking organizations. Most research on enterprises
entering negotiation processes is focused the dimensions (variables) that create problems
(Balmer and Dinnie, 1999). Furthermore, the researchers have limited their examination
on the optimum negotiation conditions between the two enterprises involved in the
1306 merger. What is missing is an exploration of the role of humans’ behaviour related to
beliefs, attitudes and social representations in the negotiation process.
To achieve the basic aim of this research, that is to investigate the humans’
behaviour in the negotiation process of two banking organizations aiming at their
merger; we needed to begin by taking under consideration the totality of prevailing
conditions as well as the total of the variables. To identify the total of variables that
take part in the negotiation process we focused our attention on a merger effort of two
big Greek banking organizations at the end of 2001. From the available data derived
from the five-month period of negotiations between the two Greek banks, a wide range
of variables were identified, which we categorized by rule of their basic components
(Babbie, 1989).
This categorization ultimately led us to conclude that ten basic variables took part
during the evolution of the negotiation of the two banking organizations. These were:
process, equality, collaboration, negotiation structure, staff beliefs and attitudes,
stockholders briefing, assurance of high executives, and assurance of middle
executives, communication, and resources.
After locating the main variables that were related to the specific merger process,
we focused on one of the previous variables which, for this particular research effort
was the variable of Staff Beliefs and Attitudes with its attendant human factors.
For our study, staff beliefs and attitudes were defined as the total of the main
behaviours displayed by the executives of the organizations under merger, during the
negotiation. For example; The amount and the way the executives display stress and
fear of change greatly depends on the culture of the involved parties (Panchal and
Cartwright, 2001). Differences in culture also play a significant role in relation with
several factors during negotiations.
In the actual banking status of Greece, where an effort is made to merge private banks
with banks that belong to the public sector[1], the problem becomes more intense since
the executives of the latter are not willing to abandon the heavily structured labour and
administrative public regime, while on the other hand the executives of a private bank
often display substantial flexibility aiming at opportunities for development.
The negotiation concepts for a win-win result are almost the same in Greece as in
the UK for example (Fraser and Zarkada-Fraser, 2002) but in these two countries a
large-scale denationalisation is taking place. Despite this fact in Greece there seems to
be no great disposition for concessions. In perspective, the Greek public bank employee
does not seem willing to easily yield the benefits that the powerful syndical movement
has obtained, in order to create profitable mergers.

Research questions
The study reported here was guided by the following research questions:
(1) What is the importance that the variable “staff behaviour[2]” might play during
a negotiation process aiming at merger in the Greek banking area?
 (2) How are the strategic actions and reactions (behaviors) of the executives during Greek banking
negotiations affected by the “institutional form” of the bank involved in the M&A
negotiation process aiming at merger? (bBy the term “institutional form” we
mean the private or public character of each banking organization). negotiations

Methodology and data analysis design considerations

The subject organizations for this study were one public and one private bank which 1307
were engaged in M&A negotiations.
To address the research questions, it was necessary to determine and evaluate all
the elements that were present during the negotiation. These elements were collected
from press releases of the two banks, from the various presses – interviews given by
high executives during negotiations, from different articles written by high executives,
and from the process of data published in the daily and periodical financial press. The
scale of evaluation used ranged from 1 to 5.
The data gathering and analysis process involved both quantitative as well as
qualitative paradigms of research. Data analysis utilized both thematic (qualitative
analysis) and descriptive statistics (quantitative analysis).
For the understanding of the results, we have named the bank whose management
is determined by the public factor “public bank” and the bank whose stocks are held by
private interest “private bank”. An initial analysis indicated that the variable under
examination subsumed four main human factors, which became the focus of analysis.
One of the big issues that we faced was the collection of the greatest possible
number of questionnaires for quantitative data analysis in order to:
(1) Confirm or deny the data emerging from the qualitative inquiry (a technique
frequently called “triangulation”.
(2) Present data in the form of easy-to-read tables so easy comparison could be
made between public bankers and private bankers.
To do this, a software program, which had a multi faceted capability was selected. At
first it collected the email addresses in a multiple criteria structure. Finding for
example the email addresses of those whose profession was: banking, country of work:
Greece and level of education: MSc. An email list was created in this manner, which
was later enriched with names of professionals. In addition, it was able to verify the
collected email addresses and mass forward the questionnaire without the servers
rejecting it because they would perceive it as spam.
Finally, it must be mentioned that there were efforts to render the results with the
Monte Carlo method. There was a difference of about 3 per cent with this simulation in
comparison to the questionnaires collected from the Internet. This small distance
between the results simulated under the Monte Carlo method and the questionnaires
filled by unknown recipients, shows that those asked responded honestly to the short
questionnaire they received. A design suggestion for future research is to create in
parallel a web page for those email addresses that cannot receive files in document
form, so that the person asked can answer online.
After the collection of results, with logical and numerical functions as the IF, THEN,
ELSE in EXCEL environment the sums (sums) and the means (averages) the opinions
of those who were asked came out. By this way the element of “Importance of factor”
resulted.
MD At the same time, with the help of these results we searched if win-to-win
47,8 negotiation existed. If there was no agreement, due to absolute identification of
opinions, then the calculating, in second phase, controlled if the opinions of those who
were asked, abstained only one unit and this meant that the “possibility of agreement”
existed. Finally if it distinguished that in the examined sub factors existed big
disagreement then it gave the characterization “no chance of agreement”.
1308 Finally, with the help of the software and while in one of the sub factors existed
disagreement, it could lead in “agreement” to the main factor, due to the absolute or
partial agreement in the rest sub factors.

Data summaries
The first factor in “staff behaviors” is stress; according to the research findings of
Table I we conclude that the decision makers of the merging bank have more stress
than that of the merged bank. The qualitative research showed that the finding is fully
justified, since the merging bank, both during the negotiation and during the
realization of the merger, has much more goals to achieve.
Many researchers have examined the total of the factors that produce insecurity to
the employed when their organization is involved in M&A process (Appelbaum et al.,
2000). In this specific research the people of the private bank have more fear of the
oncoming change. The best choice for the avoidance or the elimination of such
phenomena is open and unhindered briefing (Smye and Grant, 1989).
In the attitude “feeling of loss and insecurity” we see that the negotiators of the
private bank have a lot of insecurity. The finding of our research is totally justified
since the study of M&A in international banking, so far, proves that achieving goals is
much easier when they are connected with reduction of cost than with increase of
earnings. This is absolutely true since it entails restructuring employment, but is
proved to be very difficult in the Greek area.
Thus, the negotiators of the private bank, that is also the less powerful according to
its percentages of sales (turnover) in this specific branch, understand that their position
in the new organization is uncertain, so long as the cost reduction is applied.
In Table II it is shown that both sides, in a total of ten factors, rank “Staff
Behaviors” in the second place. Indeed, this may even be the first most important factor
for the success of M&A. Furthermore, many researchers with an equally high estimate
of significance and contribution to successful M&A suggest a well-structured
communicational plan in order to avoid loss of morale or fear of change (Kelly, 1989).

Banking sector
Negotiation for merger and acquisition
Factors Public bank Private bank

Staff functions 4 4
Stress 4 3
Table I. Fear of change 2 4
Public and private staff’s Feeling of loss and insecurity 2 4
behaviours Loss of morale 2 3
In Table III we can see that the finding of the research is that despite the fact that the Greek banking
involved parties disagree on secondary factors, they fully agree on the significance of M&A
the factor “staff behaviors”, in terms of the vigilance they should have regarding the
reassurance of the staff. This finding reflects the particularities of the actual status in negotiations
Greece (powerful trade-union movement) but also the true worries of the researchers.

Conclusions
1309
The research has pointed some elements that are explained and justified by rule of the
existing circumstances in the Greek banking area. The fear of change is bigger and
more significant factor for the negotiators of the private bank, while for the negotiators
of the public bank it stands rather low in their estimation.
This difference is easy to explain if we resort to the “assurance of employment” that
is guaranteed by the trade-union vehicle of the public bank’s employees. The difference
created regarding the parameter of “fear of change” becomes even more important
factor for the negotiation process, if we take into account the fact that the variable
“staff behaviours” holds the second place of importance between the ten basic
variables, in the estimation made by the executives of the two companies participating
in the merger process.
On the same reasoning we should face the second significant difference that results
by the estimation of importance of the parameter “feeling of loss and insecurity”. The
negotiators of the private bank touch absolute importance (four out of five in the
estimation of the specific factor, while the negotiators of the public bank do not
consider insecurity an important factor.
On the contrary, the stress dimension is a rather important factor for the public bank
negotiators, while it remains important for the negotiators of the private bank also.

Banking sector
Negotiation for merger and acquisition
Factors Importance of factor

Staff behaviors 2
Stress
Fear of change
Feeling of loss and insecurity Table II.
Loss of morale Importance of factor

Banking sector
Negotiation for merger and acquisition Basic trends
Factors Agreement Secondary trends

Staff behaviors
Stress Win-lose Possibility of agreement
Fear of change Lose-win No chance of agreement Table III.
Feeling of loss and insecurity Lose-win No chance of agreement Possibility of agreement
Loss of morale Lose-win Possibility of agreement or disagreement
MD If we add to these results the fact that finally the merger of the two banking institutions
47,8 did not end with success, one can realize that the variable of “staff behavior” played a
significant role in the final outcome of the negotiation process.
Finally, we suggest that M&As be viewed in part as cross-culture interventions
because it does affect the individuals associated with the participating organizations’
cultures. As such, the M&A negotiation address human factors and becomes critical to
1310 the ultimate success of the effort. In the case of mergers within the EU and in Greece in
particular, three cross culture dynamics potentially will exist. First, there may be truly
an M&A effort involving organization which have at their core, differences in
socio-political cultural norms. Second, there may be within certain political nation state
entities, those mergers, which embrace the private and public dynamic. Like the
inter-nation state merger effort, there will be its own form of cultural differences which
is based in the norms of the organizations’ domains. Finally, there will be the dynamic
of a dominant and minority relationship.
This study allows us to advance two new questions for consideration. First, is there
a correlation between the degree and manner to which human factors are treated on
parody with other dynamics in the M&A negotiation and the degree and longevity of
the success of the effort? Second, is there a correlation between the degree and type of
cross-culture intervention during the M&A process and the degree to which the
minority organization’s human resources either withdraw or engage in the building of
a sustainable partnership.

Notes
1. Indeed, the data of this research are collected by the merger of two major Greek banks, in
which case the most powerful of the two banks has the character of a public organization”
while the second one is the third more powerful bank of purely private interest.
2. That means the actions and reactions of the executives of the two banks in merger
negotiations is due to their beliefs, attitudes, and social representations.

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MD About the authors
Nikolaos Konstantopoulos is an Assistant Professor at the University of the Aegean. In the past
47,8 he has been Director of Communication and Human Resources in anonymous companies. His
research interests are: strategic management, entrepreneurship, business organization,
negotiation. Nikolaos Konstantopoulos is the corresponding author and can be contacted at:
nkonsta@aegean.gr
Damianos Sakas is one of the teaching personnel of University of the Peloponnese. In the past,
1312 he has served in the press and communication office of the Greek Prime Minister and has an
academic background and previous experience in Anonymous Companies, in relation with the
Administration of Enterprises. He gained his Doctorate in Enterprising Negotiation. His research
fields are negotiation, business communication and knowledge management.
Yiannis Triantafyllopoulos is a PhD candidate in the Aegean University. He is an executive
member in the BP company. His research fields are in Mergers and Acquisition, Performance
Management and Strategy.

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