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Darbo asked in Business & FinanceInvesting · 1 decade ago

Which stocks stands to gain the most in M&A?

In cases such as Time Warner/AOL debacle. Which stockholders stand to gain the most in M&A - parent or child company, all other things being equal?

Another case: if one has equal holdings in XM & Sirius, assuming their duopoly could get approved and a combined company would significantly improve revenue opportunities, reduce bidding wars for content and reduce efficiencies and other competitive costs, which holding would stand to gain the most from a potential M&A?

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  • 1 decade ago
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    Generally, the company being bought fares the best. In your XM/Sirius example, my guess is that both companies would merge and the benefits would be fairly equal.

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