MERGERS AND ACQUISITIONS AS TYPES OF CONTROL TRANSACTIONS ON THE MARKET FOR CORPORATE CONTROL

Mergers and acquisitions are types of control transactions on the market for corporate control that often imply dramatic changes for shareholders, employees and especially for managers. Theory and praxsis have shown that in cases where managers of the bidding firm are able to serve their own interests rather than interests of shareholders, the market for corporate control plays a paradoxical role - it provides a means of improving corporate productivity and profitability and a means by which they may themselves be disciplined or displaced