Mergers are for suckersMergers are for suckersMichael...

Mergers are for suckers

Mergers are for suckersMichael Pascoe
December 9, 2008 - 2:06PM
Most people think they are better-than-average drivers, which, by definition, most people can't be. Call it a mass delusion.

Takeovers and mergers are generally like that too - a source of delusion for the key players.

Various studies over the years have found most big corporate takeovers/mergers are failures as far as the acquiring shareholders are concerned - but that doesn't stop the moving and shaking boards, CEOs and fee-hungry advisers all proclaiming that their takeover is different.

But there is one player who never loses in a big takeover - the CEO of the taker or takee. The quickest and easiest way to receive a multimillion payout (without the slight opprobrium of being sacked for incompetence) is to be taken over. Next best is to do the takeover, which enables the CEO's remuneration consultant to argue for a pay rise on the basis of greater responsibility.

http://business.smh.com.au/business/mergers-are-for-suckers-20081209-6uiu.html

I am worryed about this CEO of Jackgreen we all know that he has been misleading at times. And there have been a few deals that look questionable.
Yes i am worryed that a under the table deal is done just when the shareholders have done the hard yards over the a few years without a retruns.
I seen this a few times now just when the company about to trun a profit it gets under sold. (Call it an under the table deal)