Securities Markets in the 1980s: The New Regime, 1979-1984

By Barrie A. Wigmore | Go to book overview
Save to active project

9
The Merger and Acquisition Market

The sixfold growth in merger and acquisition volume from $25 billion in 1979 to $156 billion in 1989 was one of the most dynamic and noteworthy trends of the decade. 1 Similar merger explosions only occurred at the turn of the century, in the 1920s, and in the 1960s. The academic literature has debated whether the motives behind it were rationalizing industry and displacing inefficient management or executive self-aggrandizement or wealth transfers that created stockholder value at the expense of other stakeholders such as bondholders, employees, and communities. I propose to leave this issue until volume 2, when I can deal with the decade as a whole, and for the moment focus on the forces that struck practitioners at this early stage -- a dramatic change in antitrust regulations by the Reagan administration, the dynamics of the oil industry, unprecedented leverage opportunities offered by the banks and the junk bond market, and the peculiar American institution of corporate raiders.

The new antitrust atmosphere permitted the number of mergers of $1 billion or more to rise from three in both 1979 and 1980 to nine in 1981 and nineteen in 1984, while the number of public companies acquired during 1981-1984 was actually 8.5% fewer than under President Carter. Among the ten largest transactions in 1984, 84% by value would have been subject to antitrust challenge without a change in the government's attitude.

Mergers and acquisitions related to the oil industry rose from 11% to almost one-third of the merger activity between 1979 and 1984 and were the hothouse for techniques employed elsewhere. At first, oil-related ac

-301-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
Loading One moment ...
Project items
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited page

Bookmark this page
Securities Markets in the 1980s: The New Regime, 1979-1984
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen
/ 424

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.

Are you sure you want to delete this highlight?