tag:blogger.com,1999:blog-8152901575140311047.post1247670502734934445..comments2024-03-18T10:18:19.736-04:00Comments on Musings on Markets: Acquisition Hubris: Over confident CEOs and Compliant BoardsAswath Damodaranhttp://www.blogger.com/profile/12021594649672906878noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-8152901575140311047.post-39405369848971969092013-09-10T15:27:19.193-04:002013-09-10T15:27:19.193-04:00Fantastic blog
Tom Cruise Leather Jacket Mission ...Fantastic blog <br /><a href="http://www.amazon.com/Mission-Impossible-Ghost-Protocol-Jacket/dp/B00EHO13FQ/ref=sr_1_44?m=A2GVDDIR8DJV1C&s=merchant-items&ie=UTF8&qid=1378664868&sr=1-44" rel="nofollow">Tom Cruise Leather Jacket Mission Impossible 4 </a><br />Anonymoushttps://www.blogger.com/profile/02378236444802184226noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-18915152700635952142012-12-10T04:57:18.365-05:002012-12-10T04:57:18.365-05:00It's a pity that this phenomenon still spread ...It's a pity that this phenomenon still spread all over the word. Today, Siemens is trying to overcome the underperformance over the last few years by cutting cost and performing acquisitions such as the one of Invensys' rail division for £1.7bn. It's like a never ending history.guzhttps://www.blogger.com/profile/07985769258629242052noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-77706230207417010002012-12-07T18:19:22.483-05:002012-12-07T18:19:22.483-05:00To follow what Felix said, just what opportunities...To follow what Felix said, just what opportunities for notable growth exist for big corporations like HP other than through M&A? It's much easier to purchase increased revenues than it is to grow them organically. We would be much better off if big corporations were evaluated over periods 5 years and longer, rather than annually and quarterly. The incentives for truly strategic leadership just aren't there.MikeJakenoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-38055998842553688052012-12-05T14:42:24.437-05:002012-12-05T14:42:24.437-05:00I think an important component is the incentives a...I think an important component is the incentives and compensation plan for the CEO and other executives. They may often have compensation linked to performance metrics e.g. revenue growth. Felixhttps://www.blogger.com/profile/07299519949445282080noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-15095890607036718682012-12-05T12:21:42.832-05:002012-12-05T12:21:42.832-05:00This post is incredibly timely. Even today with Fr...This post is incredibly timely. Even today with Freeport-McMoran (http://dealbook.nytimes.com/2012/12/05/freeport-to-buy-plains-exploration-and-mcmoran/) - seems to be a decision driven by CEO relationships. Be interesting to see if the moves are accretive, the market today has agreed with your sentiment and voted accordingly. Alexhttp://apsleyinvestments.comnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-15302266086211982592012-12-05T09:53:58.149-05:002012-12-05T09:53:58.149-05:00The boards should follow the 1980s prescription&qu...The boards should follow the 1980s prescription" and "Just say No", until the shroud is removed and the facts see the light of day. Aswath Damodaranhttps://www.blogger.com/profile/12021594649672906878noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-68664411557739432012012-12-05T09:21:33.687-05:002012-12-05T09:21:33.687-05:00When acquisitions occur they are typically shroude...When acquisitions occur they are typically shrouded in secrecy during the critical pre-deal stages of identification, evaluation, synergy estimation, pricing and offer stages making it easy for an overconfident CEO to lead a campaign to acquire. Information is scarce and controlled, boards usually only see highly distilled projections that can easily be manipulated by adjusting underlying assumptions and very small tweaks to rates.<br /><br />Lenders who are often called upon to finance the deal are too often behind the screen the investment bankers provide the overconfident CEO.The Contrarian Individual Investorhttps://www.blogger.com/profile/10812447117232102268noreply@blogger.com