Pre-merger returns to target firm shareholders can exceed 30% around the announcement date of the transaction.

Question

Quizplus · Accepted Answer

It is possible for pre-merger returns to target firm shareholders to exceed 30% around the announcement date of the transaction, particularly if the market perceives the merger as beneficial for the target firm. However, this is not always the case and returns can vary widely depending on various factors such as the strategic fit of the merger, industry trends, and market conditions.

Pre-Merger Returns to Target Firm Shareholders Can Exceed 30% Around