Acceso usuarios
Mergers and Acquisitions (M&A) of European utility sectors subsequent to privatization and deregulation triggered widespread concern due to the crucial role played by utility sectors in a country's economic and social development. From the study of a sample of 156 cases of M&A within utility sectors in Europe between 1990 and 2006, this study provides evidence on the performance of utility sectors following M&A. On one hand the findings suggest that lower levels of losses are accrued to the shareholders in the acquiring companies. On the other hand the fact that acquirer shareholders in the short run and the shareholders in the combined post-acquisition companies suffered losses in the long run triggers a negative signal for the investors in utilities.
