Pavel Savor - Faculty Research in Knowledge@Wharton

M&A Is Back -- But This Time, It's Different

Tue, 24 Nov 2009 16:13:30 EST

If the past month is any indicator, acquisitions are not only thawing but heating up. In October, Comcast made a bid to merge its operations with NBC Universal to create a cable programming giant. In early November, Kraft Foods announced a $16.5 billion bid for U.K.-based chocolate maker Cadbury -- also being sought by confectioners Hershey and Ferrero. The activity spans several sectors, including technology, with Hewlett Packard's agreement to purchase 3Com for $2.7 billion, and Google's $750 million acquisition of AdMob. What's behind this shopping spree, and is the trend likely to continue? Knowledge@Wharton spoke with Wharton management professor Larry Hrebiniak and finance professor Pavel Savor about M&A strategy in a post-recession environment.

Creating 'a Bigger Mess?' Battle Lines Are Drawn on the Proxy Access Rule

Wed, 02 Sep 2009 16:37:02 EST

After the recent economic meltdown and trillions of dollars in shareholder losses, many Americans are questioning whether corporate boards have been doing their job. But the Securities and Exchange Commission's recently proposed "proxy access rule" could change the way board directors are nominated by making it easier for certain shareholders to include the names of opposing candidates on a company's proxy ballot. Proponents say the rule would make boards more shareholder-focused, while opponents argue that the change would drive up costs and leave companies vulnerable to the interests of minority shareholders. The proposal's comment period ended August 17. A decision by the SEC is expected this fall.

Winners and Losers in the Rising Tide of Proxy Wars

Wed, 23 Jul 2008 13:40:28 EST

Companies ranging from Yahoo and CSX to Motorola, H.J. Heinz and Time Warner have been the target of proxy wars over the past few years as disgruntled shareholders try to force changes in corporate behavior and/or top management. But while proxy battles these days are more prevalent and easier to launch than ever, it's unclear exactly what they accomplish. As one Wharton professor notes: "It's a good thing for shareholders that these activists rattle the cage. Whether they ultimately create value for shareholders is another issue."

Private Equity Is on a Roll, but Are Investors in for a Let-down?

Wed, 10 Jan 2007 15:27:02 EST

With private equity investors of all types flush with cash -- from venture capitalists and hedge funds to large leveraged buyout (LBO) firms such as The Blackstone Group and The Carlyle Group -- private financing hit record levels in 2006 and is likely to remain strong in the new year, according to Wharton faculty and industry analysts. Nearly a third of the dollar value of all U.S. acquisitions last year involved private equity firms, up from 3% five years ago. But just how long can this boom continue, and what changes may be in store for private equity models?