Value Creation in M A

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
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
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))
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?
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
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.
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
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
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.
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
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.
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)

10
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
11
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.
12
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.
13
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.
14
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.
15
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
16
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.
17
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.
18
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
19
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.
20
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
21
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.
23
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.
24
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.
25
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
26
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
27
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.
28
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.
29
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.
30
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.
31
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
32
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
33
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
34
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.
35
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.
36
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.
37
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
38
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.
39
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.
40
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
41
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
42
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
43
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.
44
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
45
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.
46
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.
47
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
48
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
49
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.
50
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
51
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
52
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
53
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
54
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)
55
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
56
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.
57
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
58
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
59
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.
60
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)
61
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.
62
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)
63
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
64
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)
65
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)
67
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)
68
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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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)
70
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)
73
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
74
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
75
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.
76
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
77
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
78
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
80
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)
82
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,
83
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
84
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.
86
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.
87
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
88
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.
89
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.
90
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.
91
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
92
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.
93
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.
94
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.
95
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Sudarsanam, S. 2003, Creating Value from Mergers and Acquisitions The Challenges,
Pearson Education Group, Essex.
Tobin, J. 1969, A General Equilibrium Approach to Monetary Theory, Journal of
Money, Credit, and Banking, vol. 1, No. 1, pp. 15-29.
Wilcoxon, F. 1945, Individual Comparison by Ranking Methods, Biometrics Bulletin,
vol. 1, No. 6, pp. 80-83.
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
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
available.
available.
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
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.
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 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 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
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
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
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

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.
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
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
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
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.
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
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
_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
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.
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

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
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
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
/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
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
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
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

214 pubs
Ultraframe plc
roofing constructor
- mangler ticker
Four Seasons Group
381 /
92276
382 /
92282
383 /
92370
384 /
92487
will keep its own name

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
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)

6/27/cnult27.xml - break into NA market - Market
Delisted in February 2006
Not included
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)
(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)

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
(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
(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
_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

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
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
=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.
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
_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
=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
/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 - They are acquired by UBC in 2004 which is one year
after this merger.
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
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
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
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
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
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

2003_LTSB_Group_R&A.pdf -Value enhancing in market
acquisition
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
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
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.
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

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

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

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
_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
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
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
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
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
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
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
(Retail)
Safeway stores
Westfield Group
Duelguide plc
The deal was not completed before 2005.
Insight Investments Ltd
BC Property Holdings Ltd
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.
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
Friends Provident plc
Lombard International
Assurance SA
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.
Brixton plc
Industrious Holdings
(Jersey) Ltd
783 /
Augean plc
Atlantic Waste Holdings
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
785 /
293461
786 /
293537
Serco Group plc
ITNET plc
SpareBank 1 MidtNorge
Romsdals Fellesbank ASA
787 /
293772
788 /
294938
Cidron Invest AB
Finnveden AB
Airport Concessions
and Development Ltd
TBI plc
789 /
298134
790 /
298310
Travis Perkins plc
Wickes plc
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
792 /
300227
793 /
301015
Smiths Group plc
Medex Inc.
Globe Pub Company

Ltd, The
New Pubco (TC) Ltd
794 /
301473
795 /
Premier Foods plc
Bird's Custard
Serco Group plc
RCI Holding Corporation
784 /
292702
791 /
299229
303764
796 /
304287
TietoEnator Oyj
S.E.S.A. Software und

Systeme AG
797 /
305098
Cobham plc
Remec Defense & Space

Inc.
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
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
806 /
420873
Statkraft SF
Graninge AB's 24
hydropower plants
807 /
445511
Bondcare Ltd
Helen McArdle Care Ltd
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
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
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

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

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

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
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
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

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
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
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)
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
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
60400
Freeserve plc
Intracus Ltd
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
292514
GB Gas Holdings Ltd
Zockoll Group Ltd, The
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)
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

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
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
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.
QinetiQ Ltd
(Already found)
(Scientific research
service)
Quintain Estates and
Development plc
(QED)
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
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
941 /
232499
(07/04)
Roshni Investments plc

(SPT) called Spiritel
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
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
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.
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
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
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
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
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
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

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
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
GB
Gresham Unit Trust Management

Ltd
GB
139,176.15
12.04.2001
30.04.2001
Overcapacity
854
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
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
GB
Dudley Taylor Holdings's 59

pharmacies
GB
108,523.42
12.12.2001
12.12.2001
Product
888
92905 Allied Domecq plc
GB
US
95,913.90
29.06.2001
31.12.2001
Geographic
407
GB
Kuemmerling GmbH
DE
203,494.17
04.09.2001
04.09.2001
Market
266
GB
GH Mumm & Compagnie
FR
575,000.00
13.12.2000
01.01.2001
Product
816
56693 Alphameric plc
GB
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
GB
Compania Minera Disputada de Las CL

Condes Limitada
1,402,676.00
02.05.2002
13.11.2002
Overcapacity
687
GB
Roman Bauernfeind Holding AG
344,000.00
10.12.2003
12.02.2004
Overcapacity
AT
867
80469 Anite Group plc
GB
GB
80,647.20
21.12.2000
21.12.2000
Geographic
830
GB
Datavance Group SAS
FR
82,333.30
30.05.2000
30.05.2000
Product
764
272920 ARM Holdings plc
GB
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
GB
Tone Brothers Inc.
US
1,109,835.00
22.07.2004
03.09.2004
Overcapacity
940
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
GB
94,189.60
15.02.2001
09.03.2001
Overcapacity
699
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
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
90,819.70
01.03.2000
01.03.2000
Convergence
GB
416
99708 BG Group plc
GB
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
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
GB
250,750.86
20.10.2004
20.10.2004
Geographic
328
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
GB
Exodus Communications Inc.'s

assets
US
855,450.00
30.11.2001
06.03.2002
Product
209
75516 Cadbury Schweppes plc
GB
FR
700,000.00
21.09.2001
31.10.2001
Overcapacity
353
GB
La Casera SA
ES
117,000.00
24.07.2001
31.12.2001
Geographic
590
GB
Warner Lambert (Adams) de

Mexico
MX
4,000,000.00
01.04.2003
01.04.2003
Geographic
195
GB
Snapple Beverage Corporation
US
1,725,779.58
18.09.2000
26.10.2000
Product
477
GB
Pfizer Inc.'s Adams division
US
3,890,880.00
15.12.2002
31.05.2003
Product
488
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
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
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
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
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
GB
Morgan Grenfell Private Equity's

439 pubs
GB
424,953.43
22.05.2001
12.06.2001
Geographic
379
GB
Scottish & Newcastle plc's 432

pubs
GB
446,118.76
18.06.2001
05.07.2001
Geographic
484
GB
Laurel Pub Group Ltd
GB
1,381,619.14
12.04.2002
24.05.2002
Geographic
627
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
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
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
GB
164,966.44
07.09.2001
24.10.2001
Geographic
466
GB
Morrells of Oxford Ltd
GB
104,975.59
18.06.2002
18.06.2002
Geographic
554
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
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
GB
Gullane Entertainment plc
GB
321,076.61
25.06.2002
03.09.2002
Product
132
67501 Holmen AB
SE
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
GB
Bank of Bermuda Ltd
BM
28.10.2003
18.02.2004
Geographic
1,012,830.00 *
564
GB
Household International Inc.
US
13,154,880.00
14.11.2002
31.03.2003
Market
642
GB
Losango Promotora de Vendas

Ltda
BR
696,900.19
17.07.2003
08.12.2003
Market
762
GB
Valeu Promotora de Vendas Ltda
BR
105,439.37
19.08.2004
30.09.2004
Market
913
GB
Keppel Insurance Pte Ltd
SG
81,998.40
20.12.2002
18.02.2003
product
747
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
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
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
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
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

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
GB
Stock Transportation Ltd
CA
112,634.20
17.06.2002
09.07.2002
Market
GB
ATC Group
US
174,590.20
04.01.2000
14.01.2000
Product
84
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
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
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
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
GB
STS Systems
CA
428,923.46
22.10.2000
29.12.2000
Market
SE
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
GB
Gerrard Group plc
348
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
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
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
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
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
GB
Bridge Information Systems Inc.
US
410,076.20
30.04.2001
28.09.2001
Market
596
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

The
Santander Direkt Bank AG's credit DE

card and personal loans operations
486,000.00
14.05.2003
31.07.2003
Overcapacity
757

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

The
652

The
US
National Westminster Bank plc
GB
First Active plc
IE
362

The
108,088.34
14.08.2001
24.09.2001
Market
623

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
GB
Softline Ltd
ZA
94,813.14
01.08.2003
14.11.2003
Market
20
GB
Best Software Inc.
US
445,901.60
12.01.2000
22.02.2000
Product
330
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
659
GB
Medway Power Ltd
GB
284,489.15
06.10.2003
07.11.2003
Overcapacity
672
GB
Atlantic Electric & Gas Ltd
GB
136,188.19
28.04.2004
28.04.2004
Overcapacity
722
GB
Atlantic Electricity and Gas Ltd
GB
134,548.24
04.05.2004
04.05.2004
Overcapacity
177
GB
SWALEC
GB
357,214.97
07.08.2000
31.10.2000
Geographic
524
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
GB
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
GB
Oratec Interventions Inc
US
353,524.00
14.02.2002
22.03.2002
R&D
712
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
GB
Heimann Systems GmbH
DE
367,921.53
01.10.2001
02.12.2002
Product
956
GB
US
84117.00
19.10.2004
24.11.2004
Product
942
GB
Dynamic Gunver Technologies LLC US
85,445.40
15.03.2004
04.05.2004
R&D
944
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
GB
TI Group plc
GB
3,118,666.23
18.09.2000
04.12.2000
Product
202
GB
Fairchild Defense
US
118,063.75
27.09.2000
30.10.2000
Product
GB
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
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
GB
NFO WorldGroup Inc.
US
382,365.00
14.05.2003
11.07.2003
Market
894
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
GB
Wilson Connolly Holdings plc
GB
695,995.63
01.09.2003
16.01.2004
Overcapacity
920
150581 Tele2 AB
SE
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
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
GB
US
96,958.40
03.08.2001
03.09.2001
Geographic
640
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
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
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
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
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
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
GB
Stiell Ltd
GB
140,755.05
01.03.2002
01.03.2002
Product
877
GB
Kennedy Utility Management Ltd
GB
84,843.65
22.03.2001
22.03.2001
Overcapacity
218
GB
Interpharm Groep
NL
223,700.00
05.10.2000
09.11.2000
Market
446
GB
Dudley Taylor Holdings's 59

pharmacies
GB
108,523.42
12.12.2001
12.12.2001
Product
888
GB
US
95,913.90
29.06.2001
31.12.2001
Geographic
407
GB
Kuemmerling GmbH
DE
203,494.17
04.09.2001
04.09.2001
Market
266
GB
GH Mumm & Compagnie
FR
575,000.00
13.12.2000
01.01.2001
Product
816
56693 Alphameric plc
GB
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
GB
Shell Coal Holdings Ltd
AU
955,616.90
31.05.2000
27.07.2000
Overcapacity
495
GB
Compania Minera Disputada de Las CL

Condes Limitada
1,402,676.00
02.05.2002
13.11.2002
Overcapacity
687
GB
Roman Bauernfeind Holding AG
AT
344,000.00
10.12.2003
12.02.2004
Overcapacity
867
GB
GB
80,647.20
21.12.2000
21.12.2000
Geographic
830
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
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
SE
Tesa Hardware
ES / MX
135,704.46
20.09.2001
28.11.2001
Market
491
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
GB
Unilever Group's Mexican food oils MX

and fats brands
574
GB
Novartis AG's food and beverage

business
CH
272,500.00
08.10.2002
29.11.2002
Overcapacity
709
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
GB
GB
94,189.60
15.02.2001
09.03.2001
Overcapacity
732
GB
Alvis plc
GB
354,521.71 *
03.06.2004
23-09-2004
Product
919
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
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
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
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
GB
GB
250,750.86
20.10.2004
20.10.2004
Geographic
328
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
GB
POP Point of Presence GmbH
DE
106,609.81
18.07.2000
26.07.2000
Product
420
GB
Exodus Communications Inc.'s

assets
US
855,450.00
30.11.2001
06.03.2002
Product
353
GB
La Casera SA
ES
117,000.00
24.07.2001
31.12.2001
Geographic
590
GB
Warner Lambert (Adams) de

Mexico
MX
4,000,000.00
01.04.2003
01.04.2003
Geographic
195
GB
Snapple Beverage Corporation
US
1,725,779.58
18.09.2000
26.10.2000
Product
477
GB
Pfizer Inc.'s Adams division
US
3,890,880.00
15.12.2002
31.05.2003
Product
488
GB
Dandy A/S
DK
312,673.48
27.06.2002
27.06.2002
Product
209
GB
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
GB
Opal Telecommunications plc
GB
168,812.26
06.11.2002
06.11.2002
Product
883
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
GB
Morrison Management Specialists

Inc.
US
629,828.10
06.02.2001
05.04.2001
Geographic
302
GB
Selecta Group AG
CH
576,036.84
12.02.2001
20.05.2001
Geographic
392
GB
Vendepac Ltd
GB
142,768.30
23.07.2001
23.07.2001
Geographic
399
GB
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
GB
Uniq's St Ivel Spreads business
GB
136,754.19
29.09.2002
01.11.2002
Product
52
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
GB
TimeBridge Technologies Inc.
US
253,079.13
27.09.2000
01.11.2000
Market
354
GB
Proxicom Inc.
US
519,948.80
07.05.2001
15.06.2001
Product
323
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
GB
Swallow's Inns and Restaurants
GB
198,333.30
16.05.2000
11.07.2000
Geographic
363
GB
Morgan Grenfell Private Equity's

439 pubs
GB
424,953.43
22.05.2001
12.06.2001
Geographic
379
GB
Scottish & Newcastle plc's 432

pubs
GB
446,118.76
18.06.2001
05.07.2001
Geographic
484
GB
Laurel Pub Group Ltd
GB
1,381,619.14
12.04.2002
24.05.2002
Geographic
627
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
GB
Alfred McAlpine Homes Holdings

Ltd
GB
739,599.51
14.08.2001
01.10.2001
Market
375
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
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
GB
GB
164,966.44
07.09.2001
24.10.2001
Geographic
466
GB
Morrells of Oxford Ltd
GB
104,975.59
18.06.2002
18.06.2002
Geographic
554
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
GB
Grantchester Holdings plc
GB
305,306.12
09.09.2002
21.10.2002
Product
914
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
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
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
GB
Huon Holdings Ltd
AU
295,506.56
17.05.2001
17.06.2001
Market
886
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
GB
Meconic plc
GB
234,993.45
21.06.2001
09.08.2001
Market
509
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
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
GB
Instrument Specialities Co Inc
US
336,362.63
07.08.2000
26.08.2000
Convergence
763
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
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
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
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

plc
955

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
GB
Abbey National plc's retail credit

card assets
GB
463,894.14
19.03.2001
19.03.2001
Overcapacity
697
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
GB
Stock Transportation Ltd
CA
112,634.20
17.06.2002
09.07.2002
Market
GB
ATC Group
US
174,590.20
04.01.2000
14.01.2000
Product
84
GB
School Services & Leasing Inc.
US
227,833.30
31.05.2000
31.08.2000
Product
156
GB
Prism Rail plc
GB
259,664.76
18.07.2000
17.01.2001
Overcapacity
188
GB
Niagara Mohawk Holdings Inc.
US
10,372,950.00
05.09.2000
31.01.2002
Overcapacity
489
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
NO
Technal SA
FR
116,000.00
01.12.2001
31.01.2002
Market
300
NO
VAW Aluminium AG
DE
3,095,000.00
07.01.2001
15.03.2002
Overcapacity
366
NO
Walsum paper mill
DE
1,088,444.80
29.05.2001
30.11.2001
Market
135
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
GB
STS Systems
CA
428,923.46
22.10.2000
29.12.2000
Market
GB
Real Time Control plc
GB
120,983.60
28.01.2000
26.04.2000
Overcapacity
SE
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
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
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
GB
76,394.16
07.08.2002
07.08.2002
Product
314
GB
Oxy Co Ltd
KR
134,932.91
12.03.2001
12.03.2001
Geographic
861
GB
Mosquito Coil Group
ID
76,742.05
24.11.2000
24.11.2000
Market
753
266052 Regus Group plc
GB
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
GB
Bridge Information Systems Inc.
US
410,076.20
30.04.2001
28.09.2001
Market
596
GB
Multex.com Inc.
US
183,046.50
18.02.2003
26.03.2003
Convergence
842
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
20
GB
Best Software Inc.
US
445,901.60
12.01.2000
22.02.2000
Product
330
GB
Interact Commerce Corporation
US
316,093.80
28.03.2001
02.05.2001
Product
928
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
GB
SWALEC
GB
357,214.97
07.08.2000
31.10.2000
Geographic
524
GB
Dynegy Hornsea Ltd
GB
205,260.22
30.09.2002
30.09.2002
Product
469
GB
GB
205,333.82
30.07.2004
30.07.2004
Overcapacity
659
GB
Medway Power Ltd
GB
284,489.15
06.10.2003
07.11.2003
Overcapacity
672
GB
Atlantic Electric & Gas Ltd
GB
136,188.19
28.04.2004
28.04.2004
Overcapacity
722
GB
Atlantic Electricity and Gas Ltd
GB
134,548.24
04.05.2004
04.05.2004
Overcapacity
534
GB
Damhead Creek power station
GB
476,374.72 *
02.06.2004
02.06.2004
Geographic
281
GB
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
GB
Westaim Biomedical Corp's US and US

Canadian Burns Dressing Business
463
GB
Oratec Interventions Inc
US
353,524.00
14.02.2002
22.03.2002
R&D
712
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
GB
Heimann Systems GmbH
DE
367,921.53
01.10.2001
02.12.2002
Product
875
GB
Barringer Technologies Inc.
US
99,934.08
09.03.2001
11.05.2001
Product
956
GB
US
84117.00
19.10.2004
24.11.2004
Product
942
GB
Dynamic Gunver Technologies LLC US
85,445.40
15.03.2004
04.05.2004
R&D
944
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
GB
Marconi Actuation Systems Inc.
196
GB
TI Group plc
GB
3,118,666.23
18.09.2000
04.12.2000
Product
202
GB
Fairchild Defense
US
118,063.75
27.09.2000
30.10.2000
Product
475
111154 South African Breweries plc
GB
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
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
SE
Away From Home's tissue

operations
US
904,995.00
22.01.2001
22.01.2001
Overcapacity
434
SE
Encore Paper Company Inc
US
104,640.80
21.11.2001
21.11.2001
Overcapacity
436
SE
Cartoinvest SpA
IT
472,000.00
20.11.2001
18.12.2001
Overcapacity
694
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
GB
NFO WorldGroup Inc.
US
382,365.00
14.05.2003
11.07.2003
Market
894
GB
TES/Rapid Chek Reporting
US
84,105.30
08.11.2001
20.11.2001
Product
818
GB
Competitive Media Reporting
US
91,666.70
09.10.2000
09.10.2000
Overcapacity
292
GB
Bryant Group plc
GB
1,047,969.55
22.01.2004
16.03.2001
Overcapacity
651
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
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
GB
BP Amoco's Southern North Sea

assets
GB
330,393.66
31.07.2000
25.08.2000
Overcapacity
714
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
GB
Aprovia UK Ltd
GB
111,570.07
21.07.2003
21.07.2003
Geographic
884
GB
Allison-Fisher International Inc.
US
91,504.49
01.06.2001
27.06.2001
Geographic
890
GB
US
96,958.40
03.08.2001
03.09.2001
Geographic
182
FI
Repap Enterprises Inc.
CA
1,010,000.00
29.08.2000
16.10.2000
Product
365
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
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
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
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:
market returns.*/
data skriveb.GEOG;
set GEOG;
data skriveb.geogrm;
set geogrm;
data skriveb.geogra;
set geogra;
proc iml;
T=250 days and the event window of
+/- 5 days.*/
use skriveb.geog;
T=250;
z=z[1:250,];
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;
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;
M=m[251:261,];
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;
AK=AK[251:261,];
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;
print pvalue;
quit;
Appendix D3: Example of SAS code (Sign) used in relation to daily stock prices.
Sign test:
libname Skriveb 'C:\Documents and Settings\Louise Mller\skrivebord';
market returns.*/
data Skriveb.Geog;
set Geog;
data Skriveb.GeogRm;
set GeogRm;
data Skriveb.GeogRa;
set GeogRa;
proc iml;
T=250 days.*/
use skriveb.Geog;
T=250;
z=z[1:250,];
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;
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;
M=m[1:261,];
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;
the estimation period and
the event window in relation to the 55 companies.*/
use skriveb.GeogRa;
T=261;
AK=AK[1:261,];
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;
Tobs=((1/sqrt(55))*sum(ARsign[256,]))/Stddev;
print Tobs;
/*Finally the calculation of the p-value.*/

print pvalue;
quit;
Appendix D4: Example of SAS code (Gen. Sign) used in relation to daily stock
prices.
Generalized Sign test:
libname Skriveb 'C:\Documents and Settings\Louise Mller\skrivebord';
market returns.*/
data Skriveb.Geog;
set Geog;
data Skriveb.GeogRm;
set GeogRm;
data Skriveb.GeogRa;
set GeogRa;
proc iml;
T=250 days.*/
use skriveb.Geog;
T=250;
z=z[1:250,];
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;
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;
M=m[1:261,];
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;
the estimation period and
the event window in relation to the 55 companies.*/
use skriveb.GeogRa;
T=261;
AK=AK[1:261,];
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;
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:
the name Geog.*/
data skriveb.Geog;
set Geog;
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;
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;
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:
libname skriveb 'C:\Documents and Settings\Louise Mller\skrivebord';
the name Geog.*/
data skriveb.Geog;
set Geog;
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;
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
*
*

17.5+
++++
*
|
+++++ ********
|
++++********
|
**************
|
*********+++
-7.5+
**** +++++
|
****+++++
|
***+++
| +***+
|++ *
-32.5+ **
|
|
|
|
-57.5+
|
|
| *
|*
-82.5+
|
|
|
|*
-107.5+*
+----+----+----+----+----+----+----+----+----+----+
-2
-1
0
+1
+2
The ANOVA Procedure
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
603
Error Mean Square
113.9071
Critical Value of t
3.13772
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
603
Error Mean Square
113.9071
Critical Value of Studentized Range 4.30147
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

4.5+
+++++**
|
+*********
|
*******
1.5+
*******
|
****+
|
*****
-1.5+
*******
|
******
|
*****+
-4.5+ ++***
|+***
|
-7.5+
|**
|*
-10.5+*
+----+----+----+----+----+----+----+----+----+----+
-2
-1
0
+1
+2
0
0
0
The ANOVA Procedure

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
603
Error Mean Square
4.667856
Critical Value of t
1.96391
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
603
Error Mean Square
4.667856
Critical Value of t
3.13772
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
603
Error Mean Square
4.667856
Critical Value of Studentized Range 4.30147
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
2.7924
3.3390
4.2362
0.9503
1.1688
1.5740
1.5449
1.3115
1.9693
3.0634
0.6307
0.5391
1.2529
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
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
-0.9712
-0.5500
-0.3845
-0.5763
-2.8641
-1.5740
-1.2529
-1.3116
-0.9835
-0.7443
-0.8230
-2.8831
-1.5449
-1.2230
-1.5266
-0.9469
-0.7282
-0.8437
-2.7924
-1.3115
-0.9867
-1.3834
-1.1317
-0.5401
-0.7570
-3.3390
-1.9693
-1.6469
-1.9700
-1.7388
-1.3658
-1.3006
-4.2362
-3.0634
-2.7439
-2.9539
-2.7595
-2.4880
-2.2059
1.2230
0.9867
1.6469
2.7439
0.8454
0.9075
1.2161
1.5266
1.3834
1.9700
2.9539
0.6493
0.6633
0.9712
1.3116
1.1317
1.7388
2.7595
0.3738
0.2450
0.5500
0.9835
0.9469
1.3658
2.4880
0.0947
0.0772
0.3845
0.7443
0.7282
0.5401
2.2059
0.0867
0.2661
0.5763
0.8230
0.8437
0.7570
1.3006

Value Creation in M A

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Value Creation in M A

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Department of Business Studies

An empirical study of the value creation in Mergers and

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

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

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

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

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

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

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

benchmark is the difference between the benchmark corresponding to the accounting

2.3. Preparation and selection of data

The Overcapacity M&A (Overcapacity)

The Geographic Roll-up M&A (Geographic)

The Market Extension M&A (Market)

The Product Extension M&A (Product)

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

The Industry Convergence M&A (Convergence)

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

5. Measuring abnormal performance based on stock prices

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

The day a deal becomes publicly known.

Rank test (Corrado, 1989)

Sign test (Corrado and Zivney, 1992)

Generalized Sign test (Cowan, 1992)

and are the parameters estimated in the market model

5.3.2.3. The Generalized Sign test

6. Measuring abnormal operating performance

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

6.1.1. Return on assets based on EBIT and EBITDA

6.1.2. Return on sales based on EBIT and EBITDA

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

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

Wilcoxon Signed Rank test

7. Test for differences between the strategies

Non-parametric test Wilcoxon Signed Rank test

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

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

10. Hypotheses and expectation in relation to the empirical results

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

11. Empirical evidence abnormal stock price performance

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

11.1.1. Robustness and power of the parametric t-test

11.2.3. Empirical results of the Generalized Sign test

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

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

12. Empirical evidence abnormal operating performance

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

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

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

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

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

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

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

Healy, P. M., Palepu, K. G. and Ruback, R. S. 1992, Does corporate performance

Mulherin, J. H. and Boone, A. 2000, Comparing acquisitions and divestitures, Journal

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