IBS-Pune JAGDISH PADAKI (Faculty BRM)

Prepared by: Goura Ran!an Ad "#or: D"l"p S$ar%a

An empirical study of the value creation in Mergers & Acquisitions

Focu#"n& on ac'u"r"n& co%pan"e# located "n t$e (K or Scand"na "a

)t$ January *+,*

ACKNOWLE !EMEN"

I would like to express my special thanks of gratitude to my PROF. JAGDISH PADAKI who gave me the golden opportunity to work on this wonderful live research project on the topic MERGER & ACQUISITION which also helped me in enhancing my practical skills by applying all the theoretical and analytical skills and also came to know about so many new things. Also I would like to give my special thanks to MR. DILIP SHARMA, V.P. of M&A in HU Con !"#$n%& P'#. L#(. for availing me authenticated sources relevant to this topic. At the end I would also thankful to my friends who had helped me while completing this report.

I worked on this project not only for marks but to enhance my knowledge and analytical skills in this field. Thanks to all who had helped me.

A#stract
This thesis evaluates the effects of mergers and acquisitions upon the

acquiring company based on the underlying strategic rationale for the deal. The analysis is based on both daily stock prices analysis up to ! year after the event" as well as on operating measures analysis up to # years after the event" in relation to $% and &candinavian based acquiring companies. An event study approach is taken to evaluate the abnormal performance following a merger or an acquisition. 'oth a parametric t(test as well as different non(parametric tests are conducted and the empirical results indicate that the highest amount of power and reliability is attached to the non(parametric tests. The main empirical results from the thesis in relation to the performance of the acquiring firms are that in most cases it is not possible to detect any abnormal performance. This indicates that it is not possible to find support in favour of a positive reaction or effect of a merger. )owever* in cases when an abnormal performance is detected it is mostly negative indicating that the acquiring company looses value. In the shortest period of time around the event day the stock prices show some evidence in favour of a positive reaction in the stock prices in response to the deal. In relation to the investigation of differences between the different strategies it appears that it is not possible to conclude that all of the strategies differ. )owever* some indication of one strategy outperforming the remaining strategies as well as one strategy being outperformed by the others was detected from the analyses of differences.

An empirical study of the value creation in +,A - in relation to the strategic rationale T$)"* of %on#*n# +. In#,o(!%#ion ................................................................................................................ + +.+. R* *$,%- .!* #ion ................................................................................................ / +./. D*fini#ion $n( %"$,ifi%$#ion .............................................................................. 0 +.0. D*"i1i#$#ion .......................................................................................................... 0 +.2. E'$"!$#ion of o!,%* ........................................................................................... 2 /. R* *$,%- 1*#-o( ........................................................................................................ 3 /.+. M*$ !,in4 5*,fo,1$n%* )$ *( on #o%6 5,i%* ................................................. 3 /./. M*$ !,in4 5*,fo,1$n%* )$ *( on o5*,$#in4 1*$ !,* ................................... 7 /.0. P,*5$,$#ion $n( *"*%#ion of ($#$..................................................................... +8 0. R* !"# f,o1 5,*'io! *15i,i%$" #!(i* on '$"!* %,*$#ion in M&A ................... +0 2. E'*n# #!(i* ............................................................................................................. +3 3. M*$ !,in4 $)no,1$" 5*,fo,1$n%* )$ *( on #o%6 5,i%* .................................... +9 3.+. E #i1$#ion 5*,io(, *'*n# ($& $n( *'*n# :in(o: ............................................ +9 3./. C,*$#in4 $ )*n%-1$,6 fo, #-* ;no,1$"< 5*,fo,1$n%* ................................... += 3.0. C-oi%* of #* # > P$,$1*#,i% o, Non?5$,$1*#,i% ............................................ +7 ..#.!. The parametric t(test ..................................................................................... !/ ..#.0. 1on(parametric tests..................................................................................... 02 9. M*$ !,in4 $)no,1$" o5*,$#in4 5*,fo,1$n%*........................................................ /2 9.+. D*fini#ion $n( (*#*,1in$#ion of #-* *"*%#*( o5*,$#in4 fi4!,* .................... /2 3.!.!. 4eturn on assets - based on 5'IT and 5'IT6A ......................................... 0. 3.!.0. 4eturn on sales - based on 5'IT and 5'IT6A ........................................... 03 3.!.#. 7ash flow return on assets ............................................................................ 03 3.!.8. Tobin9s : ...................................................................................................... 0; 9./. E'*n# ($&, *'*n# :in(o: $n( * #i1$#ion 5*,io( ............................................ /= 9.0. C,*$#in4 $ )*n%-1$,6 ? 5*,fo,1$n%* )$ *( .................................................. /7

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An empirical study of the value creation in +,A - in relation to the strategic rationale @. D* %,i5#i'* #$#i #i% ................................................................................................. 0= @.+. D* %,i5#ion of #-* #,$#*4i* .............................................................................. 07 @./. D* %,i5#i'* #$#i #i% > D$i"& #o%6 5,i%* ........................................................ 0@ @.0. D* %,i5#i'* #$#i #i% > A%%o!n#in4 fi4!,* ...................................................... 28 +8. H&5o#-* * $n( *A5*%#$#ion in ,*"$#ion #o #-* *15i,i%$" ,* !"# ........................ 2+ ++. E15i,i%$" *'i(*n%* > $)no,1$" #o%6 5,i%* 5*,fo,1$n%* .................................. 23 ++.+. E15i,i%$" ,* !"# > 5$,$1*#,i% #?#* # ............................................................. 23 !!.!.!. 4obustness and power of the parametric t(test ........................................... 8> ++./. E15i,i%$" ,* !"# > #-* non?5$,$1*#,i% #* # ................................................ 3+ !!.0.!. 5mpirical results of the 4ank test............................................................... .! !!.0.0. 5mpirical results of the &ign test ................................................................ .0 !!.0.#. 5mpirical results of the ?enerali@ed &ign test ........................................... .8 ++.0. EA$1inin4 (iff*,*n%* )*#:**n #,$#*4i* ..................................................... 33 ++.2. S!11*,& of #-* *15i,i%$" ,* !"# in ,*"$#ion #o #o%6 5,i%* ...................... 37 +/. E15i,i%$" *'i(*n%* > $)no,1$" o5*,$#in4 5*,fo,1$n%* .................................... 98 +/.+. P,* *n#$#ion of *15i,i%$" ,* !"# .................................................................... 98 !0.!.!. 4eturn on assets - 5'IT ............................................................................. 32 !0.!.0. 4eturn on assets - 5'IT6A ....................................................................... 38 !0.!.#. 4eturn on sales ( 5'IT ............................................................................... 3> !0.!.8. 4eturn on sales - 5'IT6A ......................................................................... ;! !0.!... 7ash Alow 4eturn on assets........................................................................ ;. !0.!.3. Tobin9s : .................................................................................................... ;> +/./. EA$1in$#ion of (iff*,*n%* )*#:**n #,$#*4i* )$ *( on o5*,$#in4 5*,fo,1$n%* .............................................................................................................. 7/ +/.0. S!11$,& of #-* *15i,i%$" ,* !"# in ,*"$#ion #o o5*,$#in4 5*,fo,1$n%*... 79 +0. E'$"!$#ion of #-* ($#$, #-* ,* *$,%- $55,o$%-, $n( #-* *15i,i%$" ,* !"# ........ 77 +2. Con%"! ion ............................................................................................................... @8 +3. A fin$" 5*, 5*%#i'* on '$"!* %,*$#ion in M&A..................................................... @2

+9. Bi)"io4,$5-&............................................................................................................ @9

An empirical study of the value creation in +,A - in relation to the strategic rationale

+. In#,o(!%#ion 6ue to increased competition and increased globali@ation the economic environment has changed in recent years and in light of this* the challenges a company faces have become larger and more demanding. Bne result of this has been an increase in the number of acquisitions both within and across borders. Aor companies to stay at pace with competitors growth through acquisitions has become increasingly

important and has at least partly replaced organic growth. The number of mergers and acquisitions as well as the value of these transactions has risen significantly through time. )owever* the increase in the +,A activity is not linear* in fact it moves up and down over time with an overall rising tendency. This phenomenon is referred ! to as Cmerger waves9 in fact research documents periods with obvious increases in activity. These Cmerger waves9 influence conducting analysis of +,A the business environment and in

activity possible merger waves within the period in

question should be kept in mind. In research literature attention has been paid to +,A transactions and several studies have been conducted in order to understand and determine the trends and the characteristics in this field. The overall motive for the acquirer is value creation and in the light of increasing +,A activity it is relevant to examine whether or not value is created. Bne branch of research has focused on whether or not value is created for the acquiring firm in relation to mergers and acquisitions. 1o overall consensus exists that unanimously documents whether or not value is created for the acquiring firm. +oeller et al. 022." have concluded that value is actually destroyed when engaging in acquisitions. The reason for this conclusion is imputed to the fact that the largest +,As are the ones experiencing massive losses. A part from the Clarge loss deals9 the remaining companies actually experience gains from +,A. The conclusions from this paper are based on $& companies and have not yet been fully explored on 5uropean companies. 7ompanies engaging in mergers and acquisitions can be motivated by several different objectives* some of the most obvious as presented by &udarsanam 022#" are synergies* increased growth* cost savings and increased efficiency. Apart from these more ! &everal research studies have focused upon +,A activity and have identified periods of increased activity* which is referred to as Cmerger waves9 see +ulherin and 'oone 0222" and Andrade et al. 022!"" !

An empirical study of the value creation in +,A - in relation to the strategic rationale apparent motives might also include decreased transaction costs* increased knowledge or so forth. 'esides the motive for a company to engage in mergers or acquisitions the type of industry in which the company operates also affect the type of merger. The motive for the acquisition in the case of a mature industry could be far different from the motive dominating an immature industry. In paying attention to the motive that drives the acquisition and the industry in which the acquirer operates emphasi@e the importance of the strategic rationale for a merger or an acquisition. It is widely recogni@ed that it is decisive for a company to set up a strategy in order to meet the challenges it faces due to a fierce competition and a quickly changing environment. The strategy a company chooses to follow should be in line with an overall goal of value creation. A decision to expand through acquisitions has to correspond to the underlying strategy of the company. In line with this* the strategy or the motivation behind an acquisition is according to 'ower 022!" an important factor in determining whether or not an acquisition becomes a success ( meaning whether or not value is created. In his study he distinguishes between five overall strategies* which are examined based on $& companies. The five strategies are referred to asD Cthe Bvercapacity +,A9* Cthe 7onvergence +,A9. 1.1. question Research ?eographic 4oll(up

+,A9* Cthe <roduct or +arket 5xtension +,A9* Cthe +,A as 4,69* and Cthe Industry

The findings from the two mentioned articles are the main motivators for this thesis and the ambition of the thesis is thus to combine the two observations and apply them to 5uropean companies in an analysis of value creation. In order to conduct this analysis the following research question is posedD Is it possible to detect abnormal performance in relation to a Merger or an Acquisition? - And does abnormal performance differ between the different strategies/moti es behind the deal? In order to ensure the debt of the thesis the overall research question is analy@ed in connection to the following sub questionsD E D I '$"!* %,*$#*( in 4*n*,$" )$ *( on #-* *n#i,* $15"* of fi,1 C E-*n "oo6in4 $# *$%- #,$#*4& *5$,$#*"& i '$"!* %,*$#*( :i#-in #-* #,$#*4i* C

An empirical study of the value creation in +,A - in relation to the strategic rationale E I i# 5o i)"* #o (o%!1*n# $ i4nifi%$n# (iff*,*n%* )*#:**n #-* #,$#*4i* C

Throughout the thesis the analyses are conducted in relation to both stock prices and operating figures* which enables a focus upon short(term as well as long(term value creation. The purpose of this thesis is to detect value creation in mergers and acquisitions based on the strategy motivating the transaction. &eeing that the thesis is mainly inspired by the two observations mentioned above* it aims to document if value is created in mergers and acquisitions in cases where the acquiring company is located in the $% or &candinavia. 1.!. "efinitions clarifications and

The vocabulary and the research approach in this thesis are in line with existing research in the field. Therefore no separate definitions are presented here except for a clarification of what is meant by mergers and acquisitions. The sample included in the thesis consists of both mergers and acquisitions* but no distinction between the two types of deals is made in the analyses of value creation. A specific merger or acquisition is referred to as a deal. 1.#. "elimitation To conduct the analysis some delimitation has been made partly due to the scope of the thesis* but also in relation to the available sources of information. The companies included in the analysis were chosen based on some overall criteria in which the starting point was a sample of /./ companies. In preparing this data and conducting the analysis the sample was reduced somewhat. A specific deal was excluded in cases where no information is available to document the strategy behind the deal. This is a necessary exclusion due to the fact that the entire analysis is based on the strategy behind the deal and thus it is a necessity to distinguish the motive for each deal. To determine the underlying strategy some further delimitation have been made. In cases where a subsidiary was acquired the deal was excluded. This was done in order to maintain focus upon acquisitions of another company. In addition* some deals included in the original sample of /./ companies were located outside the $% and &candinavia and these deals were also excluded in order to stay in line with the overall characteristic #

An empirical study of the value creation in +,A - in relation to the strategic rationale of the data sampling - focusing exclusively on acquiring companies situated in either the $% or &candinavia. Aurthermore* the original sample included some deals that were announced in !/// or completed in 022.. These deals were also excluded from the sample. In order to perform the analyses stock prices or operating figures needed to be available. To conduct the analysis based on stock prices at least ;. observations prior to the announcement day were needed for a deal to be included. Aurthermore* the sample only consists of companies that in the relevant period were listed on a stock exchange in the $% or &candinavia* therefore* companies that was only listed elsewhere was excluded. In the case of operating figures* deals were excluded if changes in the accounting year were made during the period of analysis or if accounting figures in the year prior to the event were unavailable. Aor a specific deal to be included all operating figures needed not be available. Ainally the benchmark was constructed based only upon those deals included in the analysis of operating performance. This final delimitation is in particular due to the scope and time available for the paper seeing that the data collection was a very large and demanding task. 1.$. % aluation sources of

The sources used in this thesis are primarily research papers* which are considered appropriate for this type of thesis. In setting up the event study inspiration was sought in previous literature* and it was attempted to choose methods that were well documented and evaluated in previous work. In doing so the research approach is valid without having to perform a simulation study of the approach. &eeing that the approach is chosen in accordance with recommendations from previous literature the different alternative approaches and models are not discussed in debt. The reason for not including this type of discussion is primarily the limited scope of the thesis as well as the consideration that basing the event study on the work of primarily 'rown and =arner !/>."* 'arber and Fyon !//3"* +ac%inlay 022!"* and 'artholdy et al. 022;" ensures a valid and reliable approach.

Aurthermore* the thesis will focus more on the analysis and the actual results that can be drawn. &ince the approach is well specified and valid a comparison with other empirical work is possible.

An empirical study of the value creation in +,A - in relation to the strategic rationale

/. R* *$,%- 1*#-o( As mentioned above* the starting point of this thesis is the two observations - first* value is destroyed in mergers and acquisitions based on a $& sample of firms* and second* the underlying strategy is a determinant for the success of a deal. These two observations have served as inspiration in designing the research question for this thesis. In order to examine if any value is created the event study methodology is chosen as the research approach. The event study methodology is applied to the analysis of both stock prices and operating figures and both parametric and non(parametric tests are included. In the following an elaboration of the research method is presented. !.1. Measuring performance based on stoc& prices In the analysis of performance based on stock prices* daily stock quotes are applied. The analysis of stock prices is performed on five different time intervals the !! day event window* ! month* # months* 3 months and ! year". The method chosen and the analysis conducted are inspired by those methods applied in other research papers in particular +ac%inlay !//;" and 'artholdy et al. 022;"* which in large also corresponds to 'rown and =arner !/>.". 'oth parametric and non(parametric tests are conducted in order to examine if value is created. To perform an event study the first thing to do is to determine the event day* the event window and the estimation period. In this thesis the event day is set to the day that the announcement of the deal is published. The reason why the announcement day is chosen as the event day instead of the completion day is the fact that stock prices are expected to adjust immediately to new information ( in this case news of an upcoming merger or acquisition. The event window is the event day and five days before and after the event day* thus !! days in total or G . days of the event. In determining the normal performance of the companies an estimation period needs to be chosen. In this case the estimation period consists of 0.2 days prior to the first day in the event window. The estimation period is in line with the recommendations from 'artholdy et al. 022;". 6ue to the fact that not all stocks trade multiple times a day or even daily* an adjustment for

An empirical study of the value creation in +,A - in relation to the strategic rationale thin trading is recommended. This is done by applying trade(to(trade returns to the entire sample as recommended by 'artholdy et al. 022;". To conduct the event study the abnormal return at each day in the estimation period and the event window is calculated. The abnormal performance or in this case the abnormal return A4" is the difference between the actual return and the Cnormal9 return. The Cnormal9 return is estimated by means of the market model. This model assumes that all stocks perform equally to a market index adjusted by the risk associated with the stock. In estimating the Cnormal9 return the actual return of the company is regressed on the market index and the parameters H and I are estimated. The main market index in the country of the acquirer is chosen as the market index* these are AT&5 !22* B+J&#2* B+J702* B+J)0.* B&5'J and B+JI!. for the $%* &weden* 6enmark* Ainland* 1orway* and Iceland respectively. &ince the aim of the thesis is to detect value creation based on a sample of firms over a period of time an aggregation of the daily abnormal returns abnormal return is necessary. Aor this purpose the cumulative 7A4" is calculated both over time and across securities.

In relation to testing for abnormal performance by means of stock prices the following statistical tests are performedD E E <arametric t(test 1on(parametric testsD o 4ank test o &ign test o ?enerali@ed &ign test In the parametric t(test the null hypothesis of no abnormal performance is tested by means of whether or not the average 7A4 is significantly different from @ero. This parametric t(test is conducted for the entire sample as a whole and also for each of the strategies. A parametric test is subject to some assumptions that might influence the robustness of the results. The assumptions are presented in section ..#.!. The main advantage of non(parametric tests is the fact that no assumptions are attached and the results are robust regardless of possible problems in relation to the parametric test. According to 7owan !//0" another important motive for including non( parametric tests is the fact that when thin trading is present in the sample* violation of the 3

An empirical study of the value creation in +,A - in relation to the strategic rationale assumptions that characteri@e the parametric test is more likely and thus non( parametric tests are justified. The 4ank test conducted in this thesis is based upon 7orrado !/>/". In the 4ank test all abnormal returns for each security in the estimation period and in the period of analysis are ranked with the lowest rank corresponding to the lowest abnormal return 0 and the highest rank the highest abnormal return. The expected rank of the event day is the median rank plus 2... In order to test for abnormal performance* under the null hypothesis it is tested if the expected rank is equal to the rank at the event day. The &ign test is conducted in line with 7orrado and Kivney !//0". The &ign test is based upon the assumption that the probability of observing a negative or a positive abnormal return is the same ( that is 2... In performing the test the sign for each daily abnormal return is traced which is done by first obtaining the median abnormal return for each security and afterwards for each day in the sample the sign is obtained by subtracting the median abnormal return from the actual abnormal return. If obtaining a positive sign the observation is given the value !* a negative sign is given the value (! and finally in cases where the actual abnormal return is equal to the median abnormal return the observation is given the value 2. $nder the null hypothesis the probability of observing a positive cumulative abnormal return is the same as observing a negative abnormal return. The ?enerali@ed &ign test is based on 7owan !//0". The main difference from the &ign test included in this thesis is that in the ?enerali@ed &ign test* the probability of observing a negative or a positive abnormal return is estimated based on the actual returns observed in the estimation period. Thus in conducting the ?enerali@ed &ign test* the probability of observing a positive abnormal return around the event day is compared to the probability of a positive abnormal return in a period unaffected by the event the estimation period". $nder the null hypothesis of no abnormal performance the number of securities with positive abnormal returns in the event window is equal to the number that is expected in the absence of an event. After having performed the parametric and non(parametric tests for abnormal performance a A(test is performed to determine if any differences between the strategies 0 In case of the event period being analy@ed the estimation period and the event window consist of 03! abnormal returns. These are ranked from ! to 03!. ;

An empirical study of the value creation in +,A - in relation to the strategic rationale can be traced. The A(test indicates if a difference is detected* however* it does not determine where the difference is observed. Therefore* three pair wise difference tests are also concluded* that is the Aisher9s Feast &ignificant 6ifference F&6" method* the 'onferroni adjustments to F&6 method* and the Tukey +ultiple 7omparison +ethod. All tests for abnormal stock price performance are conducted for each strategy as well as for the total sample. A significance level of .L is appliedM however* tests that yield significant results with a !2L significance level are also commented. !.!. Measuring performance based on operating measures The analysis of operating performance is conducted in line with the method specified in 'arber and Fyon !//3". In the analysis of performance based on accounting figures six operating measures - 4eturn on assets 4BA" based on both 5'IT and 5'IT6A* return on sales 4B&" based on both 5'IT and 5'IT6A* cash flow return on assets and Tobin9s : ( are tested in order to detect any abnormal performance in the sample. To test for abnormal operating performance the following tests are appliedD E E <arametric t(test 1on(parametric test o =ilcoxon &igned 4ank test To observe any abnormal performance a measure for the normal performance is constructed ( in this case a benchmark for each security is created as the measure for normal performance. The benchmark is constructed on the basis of the 4BA in the year prior to the event. Aor each deal within each year the 4BA is observed and a benchmark group is established based on all securities with a 4BA of G!2L of the 4BA in question. The median observation from the benchmark group is observed and applied as the benchmark. The benchmark group is kept constant throughout the analysis and a benchmark for each security* for each operating figure and in each year is observed as the median observation in the benchmark group. If no observations fall inside the G!2L of the 4BA a benchmark is obtained as the median between the observation itself and the security with an 4BA the closest to observation in question. After constructing the benchmark any abnormal performance is detected in the following way. The performance of each company is measured as the

difference between accounting figures in two years and in the same way* the performance of the

>

An empirical study of the value creation in +,A - in relation to the strategic rationale benchmark is the difference between the benchmark corresponding to the accounting figures in question in the same two years. Ainally the abnormal performance is the difference between these two differences. The tests for abnormal operating performance are performed in the event year and the three years following the event. Abnormal performance is in all cases the difference between the performance in the year prior to the event and the year in question. The event year is determined as the accounting year in which the transaction is completed. The parametric t(test that is performed to detect abnormal operating performance is in line with the parametric test described above regarding stock prices. The

main difference is the construction of the normal performance* which in this case is based on a benchmark as described above. The null hypothesis in this t(test is @ero abnormal performance* which corresponds to the average cumulative abnormal performance being equal to @ero. In analysing abnormal performance based on operating figures a potential problem with extreme observations influence the outliers" may

test. According to 'arber and Fyon !//3" this potential problem

can be overcome by applying winsori@ed data in which extreme observations that fall st th st th outside the ! and // percentiles are replaced by the ! and // percentile respectively. The non(parametric test of performance - =ilcoxon &igned 4ank test ( is constructed in line with the method applied in =ilcoxon !/8." and Fowry !///(022>". Airst* the sign of the abnormal performance for each security is determined. &econd* the observations are ranked regardless of their sign as the absolute values of the abnormal performance. The signs are giving back to the ranks in order to test if the sum of the positive ranks is the same as the sum of the negative ranks. In this case the null hypothesis is that the sum of both positive and negative ranks is @ero in which case no abnormal performance is detected. The null hypothesis is tested by means of the standard normal distribution. The tests specified above are conducted upon the entire sample of companies as a whole as well as upon each strategy. A significance level of .L is appliedM however* tests that yield significant result with a !2L significance level are also commented.

An empirical study of the value creation in +,A - in relation to the strategic rationale !.#. 'reparation and selection of data =hen performing an event study* the selection and preparation of the data is extremely important* therefore* the next section is an elaboration on the collection of the sample on which the analysis is performed. The database CKephyr9 was used to select the overall sample. It is a database that contains information about deals in relation to company transactions. 'y means of the information CKephyr9 a crude sample based on the following criteria was selectedD !" The acquiring company was based in either the $% or &candinavia 6enmark* Ainland* Iceland* 1orway* and &weden" - a criteria set up in order for the thesis to possibly serve as a counterpart to analysis performed on $& data. 0" Aor a deal to be included the announcement date and the completion date should be in an interval from the beginning of 0222 to the end of 0228 - this criteria was set up to ensure the most recent data in which a three year post event period was available. #" A deal value larger than 5$4 ;.mio. Bnly deals with an available actual deal value are included". - The smallest deals were excluded by this criterion which was set up as a response to a presumption that with respect to the smallest deals it would be difficult to obtain adequate documentation for the chosen strategy. 8" Bnly +ergers and Acquisitions were included in the sample. ." The current completed. deal status should be provided by

The crude selection above yielded a sample of !!/8 deals. The deals in which the acquiring company after completion had an ownership share of the target of less than /;*.L or an ownership share of more than 02L of the target prior to the deal were excluded from the sample which was reduced to /./ deals. The next step in preparing for the event study analysis was to sort the /./ deals based on the strategic rationale. The sample is divided into the following six strategiesD E E E E The Bvercapacity +,A Bvercapacity" The ?eographic 4oll(up +,A ?eographic" The +arket 5xtension +,A +arket" The <roduct 5xtension +,A <roduct" !2

An empirical study of the value creation in +,A - in relation to the strategic rationale E E The +,A as 4,6 4,6" The Industry 7onvergence +,A 7onvergence"

The motivation for this division is 'ower 022!"* however* he only operates with five different strategies where CThe <roduct 5xtension +,A9 and CThe +arket 5xtension +,A9 are one strategy C<roduct or +arket 5xtension +,A9 <roduct N +arket". The rationale for dividing this strategy is a presumption that the result from C<roduct9 is potentially different than that of C+arket9. In order to keep this research in line with previous research the tests are also conducted for the combined and the overall criteria will be presented later on in section /.!. In determining the underlying strategy behind each transaction the rationale or the motivation for the transaction were determined based on different sources of information web(pages* articles* annual reports* press releases etc. If documentation for the strategy of a specific deal was not available the transaction was excluded from the sample. Aor each deal with a documented strategy the stock prices and the accounting figures was collected from C6atastream9 and CAmadeus9O9Brbis9 In order for a transaction to be included either stock prices or accounting figures had to be available* thus in cases when neither was available the particular deal was excluded from the sample. &eeing that only stock prices or accounting figures are a requirement the final sample for each of the two analyses are not the same. In case of the analyses performed based on stock prices the final sample consists of 8!2 submitted in appendix A. Arom C6atastream9 a time series of daily stock prices is collected for each deal containing quotes in the interval ranging from 0.2 days before and until one year after the announcement day. The time series is adjusted in order to exclude holidays from the sample in thereby only actual possible trading days are included. 6ue to thin trading a stock need to be traded at least #2 days of the 0.2 days in the estimation period in order to be included. The choice of a minimum of #2 days is made to ensure the power of the estimation model. To perform the analyses the data for the estimation period needs to be availableM however* in some cases the acquiring companies stock is not available in the deals and the sample for the analyses of operating performance consists of #>/ deals. The documentation for the chosen strategy is strategy. The characteristics for each strategy are in line with those described in 'ower 022!"

!!

An empirical study of the value creation in +,A - in relation to the strategic rationale entire period of analysis. The deal is included anyway and the analyses are performed only on the period available. Arom CAmadeus9OCBrbis9 accounting figures for each deal is collected from a year before the transaction and until three years after the transaction* and in addition CTotal Assets9 are collected two years before the event due to the construction of the performance measures. The accounting figures need not be available in all three years after the transaction in order to be included. All tests that are conducted in this thesis are carried out in 5xcel or &A&. The preparation of the data is performed in 5xcel and the actual tests are conducted in &A&. The reason for applying &A& in this thesis is the programs ability to process extensive data. The analyses are performed by means of the I+F procedure - a matrix procedure - that facilitates work with complex data* where a procedure is repeated numerous times. Throughout the thesis references to the relevant spreadsheets and codes is present in the beginning of each section. The remainder of this thesis is structured as follows. &ection # is a description of the main conclusion from previous studies in relation to value creation and +,A activity. In section 8 to > the event study method is presented for both stock prices and operating figures* and furthermore* the choice of research approach is discussion and evaluated. A description of the data that is included in the analysis is presented in section /. &ection !2 presents the main hypotheses in relation to the analysis performed in this thesis. The empirical results in relation to detecting abnormal stock price performance are present in section to !!* while section !0 presents performance. the empirical before results the corresponding the abnormal operating Ainally*

concluding remarks* section !# consists of an evaluation of the research approach and an attempt to detect possible pitfalls in relation to the empirical work in this thesis.

!0

An empirical study of the value creation in +,A - in relation to the strategic rationale

0. R* !"# f,o1 5,*'io! *15i,i%$" #!(i* on '$"!* %,*$#ion in M&A The aim for the companies when engaging in a merger or an acquisition is primarily value creation and according to Pensen and 4uback !/>#"* managers also compete to gain control over as many company resources as possible and thereby create a better market position for their company. )arford 022." concludes that economic* regulatory and technological factors have an impact on the creation of a Cmerger wave9* which is defined as a cluster within the +,A activity. Bne of the factors* which had a significant impact within the 5uropean market* was the introduction of the &ingle +arket in !//0 as well as the single currency in !///. These actions were followed by deregulations and privati@ation* which increased the competition between 5uropean companies and lead to a prolonged bull effect within the stock market. All these aspects affect the willingness of 5uropean companies to engage in mergers and acquisitions. Two Cmerger waves9 have been detected* concerning the 5uropean market ( a small one during !/>;(!//0 and another one during !//. to 022!. &udarsanam* 022#" =hen examining the impact that a merger or an acquisition has on a company the general result* according to +ac%inlay !//;"* is that the shareholders of the target company gain large positive abnormal returns whereas the shareholders of the acquiring company gain close to @ero abnormal return. This result if found by use of either the daily stock prices or the accounting figures. Pensen and 4uback !/>#" used the stock data and divided the shareholders into two groups and concluded that the shareholders of the target company gained abnormal performance and as well did the shareholders of the acquiring company when analy@ing the impact in the short(run - one month around the announcement. Foderer and +artin !//2" supported

this conclusion. They examined the abnormal returns within an interval of 3 days around the announcement day and did also conclude that the overall result was a minor positive abnormal return. Foughran and Qijh !//;" examined the long(term abnormal return and concluded a loss in value seen from the perspective of the acquiring company. 'oth Agrawal et al. !//0" and Foderer and +artin !//0" also documented negative abnormal performance in relation to the acquiring company concerning the long(term abnormal performance.

!#

An empirical study of the value creation in +,A - in relation to the strategic rationale The studies mentioned are all conducted based on $& companies and within the period of !/30 to !/>;. )owever* Aranks , )arris !/>/" and ?oergen and 4enneboog 0228" documented that also in the $%* positive abnormal returns are present in the short(run. The expectation of negative abnormal returns in the long(run in the $% market was supported by Aranks , )arris !/>/" and 'aker and Fimmack 0220". The analyses conducted by means of analy@ing the abnormal operating performance are divided into two groups those using the earning based measures and those using cash flow based figures. approaches 4avenscraft and &cherer !/>;" used both and concluded that when measuring the performance by use of

accounting profitability a decline in wealth was detected* whereas when basing the analysis on cash flow no decline was found which was supported by ?hosh 022!". +eeks !/;;" also documented a decline in the $% company value when measuring the performance by means of accounting profitability figures. +anson et al. !//8" use the cash flow performance measure and document an improved performance within the $% companies after a merger or an acquisition. Investments in 4,6 are considered to be a management or an investment decision and not a decision to raise capital and are often not publicly announced as a repurchase of stocks or a merger* whereas it often is not detected before the financial reports are published. 6aniel and Timan 022!" argue that due to the fact* that 4,6 investments are intangible assets* investors find it hard to process such information whereas the market takes time to incorporate the value of such an investment* which supports the statement that the stock market does not incorporate the correct value of an 4,6 investment in the short run presented by 5berhard et al. 0228". Aurthermore* they argue that the positive abnormal operational performance* due to the increase in 4,6* can be detected in the long run. 'ased on the studies presented above it seems likely to detect the same tendencies within the 'ritish and the &candinavian companies included in this thesis.

!8

An empirical study of the value creation in +,A - in relation to the strategic rationale 2. E'*n# #!(i* 'all and 'rown !/3>" and Aama et al. !/3/" introduced the event study methodology that is essentially used today and it has become the preferred method when measuring performance induced by an event. The notation Cevent study methodology9 has come to refer to different procedures for estimating abnormal returns. 5xamples of such events are earnings announcements* issues of new debt* macroeconomic announcements or acquisitions. In an event study the objective is to measure the effect of a specific event upon the value of the firm ( this can be measured by the change in stock prices. Bne advantage of event studies is that the methodology is applicable for various purposes and it is fairly simple to implement. &ince the early literature about event studies was published by in particular 'rown and =arner !/>2* !/>." the application of the event study methodology have extended and these papers have inspired the main part of the research literature that have been published in recent years. &eeing that an event study is an examination of the effects of a certain event upon the value of the firm* the first thing to do is to determine what is meant by an event - in this thesis the event is defined as the time of the announcement of a merger or an acquisition. In order to detect if any value is created as a result of the event it is necessary to detect abnormal performance. To detect abnormal performance a measure for the normal performance needs to be constructed. The normal performance is the performance that would be expected in the absence of an event. In order to perform a test trying to detect abnormal performance by means of an event study attention must be paid to the C5fficient +arkets )ypothesis9 5+)". According to Aama !/;2" the 5+) is available in three forms ( =eak* semi( strong and strong ( depending on how information is incorporated into stock prices. =hen assuming the weak form* it is expected that all historical information be reflected in the stock prices. The semi(strong form assumes that all public available information is incorporated into the stock prices and lastly* the strong form expects all information - public as well as private - to be incorporated into the stock prices. 5lton et al. 022#" as well as Aama !//!" conclude that the financial markets are efficient and it is not possible to consistently earn an abnormal return* because all available information is incorporated into the security prices immediately.

!.

An empirical study of the value creation in +,A - in relation to the strategic rationale 3. M*$ !,in4 $)no,1$" 5*,fo,1$n%* )$ *( on #o%6 5,i%* The description of the event study procedure for stock prices is outlined in the following wayD Airst* a definition and a determination of the estimation period* the event day and the event window are presented. &econd* the expected or Cnormal9 return and afterwards the abnormal return is defined and estimated* and finally the tests for abnormal performance are presented. (.1. %stimation period) e ent da* and e ent window

=hen setting up an event study it is important to consider the choice of estimation period* and event window presented in figure ..!". The estimation window is the period over which the market model is estimated. The estimation of the market model is applied to determine the Cnormal9 or expected return in the absence of an event. In order for the market model to represent the Cnormal9 return the estimation period has to be set to a period that is ideally unaffected by any abnormality. In this event study the estimation period is set to a 0.2(day period immediately prior to the first day in the event window - that is about a year of trading prior to the event window. 7onsistent with +ac%inlay !//;" it is generally recommended that the event window is excluded from the estimation period in order to make sure that the event does not influence the estimation of the market model. In prior research literature the length of the estimation window varies but according to Armitage !//."* an estimation period of about !22( days prior to the event window is sufficient though it is common to choose an estimation period between 022 and #22 days. In accordance to 6odd , 4uback !/;;" the event day is set to the day of

the announcement of the deal and not the day the deal is completed. According to the efficient market hypothesis new information will be incorporated in the stock prices !3

An empirical study of the value creation in +,A - in relation to the strategic rationale #

immediately and therefore the announcement day prices will react. The

is the day in which the stock

announcement day is registered from Kephyr* which is

considered a reliable source of information in relation to correctly determining the announcement day. In fact the determination of the announcement day is critical in conducting an event study* since this day is the reference day against which abnormal performance is detected. In expecting that the efficient markets work perfectly it would have been sufficient to restrain the event window to include only the event day. )owever* according to 5lton et al. 022#" the stock prices might react over time and not just on the event day. =hen examining the time interval around an announcement it is common to detect abnormal returns on both sides of the event day. The reason for abnormal returns appearing after the announcement day can be due to either the fact that the announcement took place too late in the day for the market to fully react or because it took time for the information to be reflected in the stock price. 5xplanations for the abnormal returns being present prior to the announcement day could be that before an announcement is made a news release is posted to notify the public about the upcoming event. This action would in an efficient market be reflected in the stock price prior to the actual announcement. Another explanation could be that information about the announcement is leaked to the market. The above mentioned* supports the assumption of a semi(strong form of the efficient market hypothesis and therefore* the event window in this thesis is set to G . days of the event day. Another reason for choosing an event window of !! days is the fact when thin trading occurs a security might not be traded on the announcement day and therefore* if only including the event day it is likely that an effect will not be detected. (.!. +reating performance a benchmar& for the ,normal-

6ifferent alternatives are available when creating the benchmark to be used as a measure for the normal performance expected return" - both statistical and economic methods. In this thesis the measure for the normal return is created on the basis of the market model. This choice of benchmark model is in line with recommendations from

The day a deal becomes publicly known. !;

An empirical study of the value creation in +,A - in relation to the strategic rationale several research papers - in particular 'rown and =arner !/>."* 'arber and Fyon !//;"* and 'artholdy et al. 022;". The market model is a statistical model that relates the return of a given security to the return of a market portfolio and in estimating the normal return a linear regression is estimated based on ordinary least squares BF&". In this thesis the market portfolio is chosen as the market index in the acquirer9s home country that is* as mentioned* AT&5 !22* B+J&#2* B+J)0.* B+J702* B+JI!.* and B&5'J. The market model assumes a linear relation between the security return and the market return and under the presumption that a particular security correlates with the market index the expected return is derived from the market index for the country in question. The market model is estimated by use of the estimation period* and the parameters H and I from the BF& estimation* are derived for each security. The abnormal return is afterwards calculated as the difference between the actual return for the security and the expected return based on the market model. These abnormal returns are calculated for each security at each point in time over the period of analysis. (.#. +hoice of tests . 'arametric or /onparametric 5vent studies can as mentioned earlier be conducted by means of both parametric and non(parametric tests. As concluded by +ac%inlay !//;" and in accordance with most research literature a test for abnormal returns induced by an event should consists of both types of tests. A parametric test is a statistical test* which is subject to certain assumptions in relation to the distribution. It is assumed that the abnormal returns are normally distributed and if the assumptions hold the power of the parametric test is large and outperforms the power of the non(parametric tests. 1evertheless* in cases when the assumptions are violated the non(parametric test should be used instead of a parametric test because the main advantage of non( parametric is that the distribution of returns is not required to be normal. In addressing the potential problem of violation of assumptions the use of both parametric and non( parametric tests allow the researcher to verify the robustness of the parametric test.

!>

An empirical study of the value creation in +,A - in relation to the strategic rationale Abnormal performance based on stock prices is tested by means of the following four testsD E E E E <arametric t(test 4ank test 7orrado* !/>/" &ign test 7orrado and Kivney* !//0" ?enerali@ed &ign test 7owan* !//0"

These four tests are presented afterwards as well as the motivation for including the specific test. Aocus will be upon the most essential aspects of each test and not a complete presentation of each aspect. The research approach in this thesis is in full agreement with tests performed in other event studies trying to detect abnormal performance in stock prices. 5.3.1. The parametric t-test Bverall parametric t(tests for abnormal performance are based on calculating the difference between two means and if transferred to this specific research problem the question is whether or not the abnormal returns are significantly performance no different than @ero. $nder the null hypothesis of no abnormal

difference between means can be detected. In accordance with the research question the purpose of this thesis is not an examination of the effects of +,A on a specific acquiring company* instead the purpose is to examine whether or not an effect can be detected based on a group of companies motivated by the same strategy. In order to examine the general effects of mergers and acquisitions the abnormal returns calculated for each company at each point in time need to be aggregated both through time and across companies. As mentioned above* the abnormal return is calculated for each security at each point in time by subtracting the estimated Cnormal9 return from the actual return. In +ac%inlay !//;" this is calculated asD A4i*t R 4i*t N Hi ( Ii4m*t 8

In aggregating the abnormal returns it becomes possible to observe overall inferences for the event. The aggregation of daily abnormal returns is measured by the cumulative abnormal return 7A4". 7A4 is measured for each security as well as across securities as an average cumulative abnormal return by summing the daily abnormal returns for each security in the case of 7A4 and by summing the average daily abnormal returns 8 H and I are the parameters estimated in the market model !/

An empirical study of the value creation in +,A - in relation to the strategic rationale across securities in the case of the average 7A4. The null hypothesis of @ero abnormal returns* which corresponds to a 7A4 equal to @ero* is tested based on a test statistic in which the average 7A4 is divided by a measure for the variance of the average 7A4. The exact variance cannot be observed and so the variance needs to be estimated before calculating the test statistic. 4ejection of the null(hypothesis indicates that an abnormal return is created as a response to the merger or the acquisition. The parametric t(test is conducted for the entire sample as a whole as well as for the individual strategies in an attempt to detect if value is created overall in the sample chosen. 'esides testing for value creation it is also of interest to detect differences between the strategy performances and so an A(test is performed. The specification of the test for differences is presented in section ;. =hen performing a t(test four assumptions concerning the probability distribution of the abnormal returns must hold in order to wholly rely on the results of the test. These assumptions areD normally distributed and independently and identically distributed abnormal returns* an expected value of the abnormal returns of @ero* and a constant variance homoscedasticity". The normality assumption is critical in order to rely upon the results of the parametric test. The assumptions are discussed and verified in the analyses. If these assumptions are violated a non(parametric test should be use instead in order to verify the robustness of the parametric test. In addition* another motive for the non(parametric test stems from the fact that the parametric test is conducted on accumulated average abnormal returns and it is possible that certain observations will have had a large affect on the test statistic and therefore might have influenced the conclusions. 5.3.2. Non-parametric tests The main advantage of non(parametric tests is the fact that they are not subject to restrictions and assumptions in relation to the distribution of returns and so the results are reliable even on data where one or more assumptions are violated. A common characteristic of these tests is the fact that the distribution is symmetric by construction. Another important motive for including non(parametric tests is

according to +aynes and 4umsey !//#" that when thin trading is present in the sample* violation of the assumptions underlying the parametric test is more likely and thus non(parametric tests are justified. 02

An empirical study of the value creation in +,A - in relation to the strategic rationale In performing the non(parametric test the procedure is the same as that of the parametric test - at least part of the way. The choice of event day* event window and estimation period is exactly the same* which is also the case for the estimation of the market model used as the measure of the normal return. )owever* the remainder of the tests are performed differently* which will be elaborated in the following. The null hypothesis of @ero abnormal performance from the parametric test is also the one applied to the non( parametric tests* even though the null hypothesis is specified in a different way to comply with test. 5.3.2.1. test The Rank

The 4ank test is conducted in line with 7orrado !/>/". The main advantage of the 4ank test is that it is not restricted by any assumptions in relation to symmetry in the distribution. To obtain the test statistic the 4ank test is constructed in the following way. All abnormal returns for each security in the estimation period and the period of analysis are ranked with the rank ! corresponding to the lowest abnormal return and the highest rank corresponding to the highest abnormal return. According to 7orrado and Kivney !//0" the adjustment for thin trading is made by standardi@ing each rank by the number of non(missing returns in the sample. The expected rank of the event day is the median rank plus 2..* however* after standardi@ing the expected or average rank is 2... In order to test for abnormal performance the null hypothesis tests whether the expected rank is equal to the rank at the event day - meaning to test whether or not it equals 2... In case of positive abnormal performance the rank of the event day would be larger than the expected rank. The test statistic in the 4ank test is calculated by dividing the difference between the rank on the event day and the average rank with the standard deviation of differences between actual ranks and average rank over the period of interest. The 4ank test is considered to be more powerful than both the parametric t(test as well as other non(parametric tests* which in particular is due to non(normality in the distributions of return and misspecifications of the market model abnormal

returns". Another important aspect or potential problem that is widely discussed in research is the possibility of variance changes around the event day. In case of variance changes the parametric t(test becomes less powerful and credible if these misspecifications are not

0!

An empirical study of the value creation in +,A - in relation to the strategic rationale addressed. Bne advantage of the 4ank test presented by 7orrado and Kivney !//0" is the fact that it is immune to these misspecifications in relation to variance changes. 5.3.2.2. test The Sign

The &ign test is conducted in line with 7orrado and Kivney !//0" and is based upon the assumption that the probability of observing a negative or a positive abnormal return is the same ( that is 2... In performing the test the sign of the abnormal return on each day is traced* which is done by first obtaining the median abnormal return for each security in the sample and afterwards subtracting the median abnormal return from the actual abnormal return and obtaining the sign of the difference. &ubtracting the median is in line with the assumption that the probability of observing a positive abnormal return is 2... If obtaining a positive sign the observation is given the value !* a negative sign is given the value (! and finally in cases where the actual abnormal return is equal to the median abnormal return the observation is given the value 2. $nder the null hypothesis the probability of observing a positive cumulative abnormal return is the same as observing a negative abnormal return. $nder the null hypothesis of no abnormal return the &ign test assesses the probability of a positive abnormal return - assuming that this probability is .2L. The test statistic of @ero abnormal return on the event day is calculated by means of the signs across the sample on the event day divided by the standard deviation. If the test is correctly specified the amount of positive and negative signs are according to 7owan !//0" the same in the absence of any abnormal reaction to the event. Bne advantage of this test is the fact that it is not restricted by any requirements in relation to symmetry in the distribution in order for the test to be correctly specified. )owever* assuming that the median of abnormal return is equal to @ero might lead to misspecification. This is overcome by calculating the sample median of abnormal return as described above. In a simulation study 7orrado and Kivney !//0" illustrate that the power of the &ign test is larger than that of the parametric t(test - due to lack of symmetry requirements in the distributions. Aurthermore* they illustrate that the &ign test is dominated by 4ank test.

00

An empirical study of the value creation in +,A - in relation to the strategic rationale 5.3.2.3. The Generalized Sign test The ?enerali@ed &ign test is based on 7owan !//0". The main difference from the &ign test described above is that in the ?enerali@ed &ign test the probability of observing a negative or a positive abnormal return is based on the actual returns observed in the estimation period across time and between securities. Thus in conducting the ?enerali@ed &ign test the probability of observing a positive abnormal return around the event day is compared to the probability of detecting a positive abnormal return in a period unaffected by an event. 'y applying this estimated probability of a positive abnormal return the possibility of asymmetry in the abnormal return distribution under the null hypothesis is addressed. The composition of the ?enerali@ed &ign test is in correspondence with the &ign test except for in creation of the median. This represents the main improvement compared to the &ign test mentioned above. $nder the null hypothesis of no abnormal performance the number of securities with positive abnormal returns in the event window is equal to the number that is expected in the absence of abnormal performance. The main advantage of the ?enerali@ed &ign test is that it takes into account the possibility of asymmetry in the distributions of return. It becomes more powerful and better specified than the &ign test. In comparing the ?enerali@ed &ign test to the 4ank test* the ?enerali@ed &ign becomes relatively more powerful as the event window increases. According to 7owan !//0" the ?enerali@ed &ign test has more power than the 4ank test in relation to event windows of !! days as is the case in this thesis. )owever* in general and under ideal conditions the 4ank test is the more powerful of the two* while under less ideal conditions* e.g. in cases of thinly traded stocks* the ?enerali@ed &ign becomes the most powerful. In order to detect abnormal performance on a longer term this thesis also includes analyses of operating performance. Again the event study methodology is applied* however* in a different way than was the case of stock prices. In the following the methodology for a study of operating performance is presented* as well as

an elaboration of the tests that will be conducted.

0#

An empirical study of the value creation in +,A - in relation to the strategic rationale 9. M*$ !,in4 $)no,1$" o5*,$#in4 5*,fo,1$n%* The basis for the evaluation of abnormal operating performance is the work by 'arber and Fyon figures - in this case a merger or an acquisition ( the actual performance of the acquiring company needs to be compared to a measure of the performance in the absence of an event. In case of stock prices the market model was used to estimate the normal return* in represented case by of operating performance the normal performance is a benchmark. In relation to operating performance the choice of !//3" in which they evaluate methods used in event studies based on operating figures. In order to evaluate the effects of an event based on operating

performance measures* benchmark and statistical test vary. The presentation of the event study procedure in relation to operating figures is organi@ed as follows. Airst focus will be on the operating figures selected for the study. Then the event day and the estimation period are defined. Afterwards the benchmark is determined and finally the statistical tests are specified. 0.1. "efinition and determination of the selected operating figures In trying to detect the effects of an event upon the performance of the company the first thing to do is to decide upon the operating figures to include in the event study. In this case six performance measures have been selectedD E E E E E E 4eturn on assets based on 5'IT ( 4BA 5'IT" 4eturn on assets based on 5'IT6A - 4BA 5'IT6A" 4eturn on sales based on 5'IT - 4B& 5'IT" 4eturn on sales based on 5'IT6A - 4B& 5'IT6A" 7ash Alow return on assets - 7A 4BA Tobin9s :

The reason for including more than one operating figure is an attempt to provide more debt to the conclusions of the event study and at the same time most

performance measures have some drawbacks and including more than one will help overcome these potential drawbacks. In the following the selected operating figures will be presented in more details.

08

An empirical study of the value creation in +,A - in relation to the strategic rationale 6.1.1. Return on assets "#$T%& 4eturn on assets 4BA" !ased on "#$T and is the most widely used measure for detecting

abnormal operating performance. 4BA is a profitability measure that represents a company9s ability to convert invested funds into earnings. The higher the 4BA the more efficient is the company in generating earnings. The smaller the 4BA the more asset intense is the company and so the more funds must be reinvested in order to continue to generate earnings. In this thesis 4BA is calculated as operating income divided by the average of beginning and end of year book value of total assets. 4eturn on assets can be calculated by means of both 5'IT and 5'IT6A* as is done in this thesis. The most widely applied of the two is 5'IT. 5arnings before interest and tax 5'IT" also known as operating income or operating profit is a measure for all profits within the company before taking interest payments and income taxes into account. The fact that 4BA is unaffected by the capital structure of the company makes it possible to compare 4BA across industries and countries. This is why 4BA is one of the most used performance measures. 5arnings before interest tax depreciation and amorti@ation 5'IT6A" takes it a step further than 5'IT by excluding the two non(cash items. In this way 5'IT6A is made indifferent of choices of financing and of accounting decisions and thus it is possible to compare across industries and across countries. )owever* neither 5'IT nor 5'IT6A is without drawbacks and thus focusing exclusively on either of the two is not adequately. According to 'arber and Fyon !//3" the drawbacks in relation to 4BA areD Chistoric cost9* Cnonoperating assets9* and Cearnings manipulation9. C)istoric cost9 refers to the fact that total assets is measured in historic costs while operating profit is measured in current currency* a better measure would be to apply current cost or replacement cost of total assets. 7alculating 4BA based on the total assets of the firm when in fact only the operating assets should have been applied might understate the true profitability of the operating assets* which is referred to as the Cnonoperating assets9 drawback. And finally* since operating profit is an accrual(based accounting figure the managers might over( or understate the reality in the direction most suitable to meet the goals. This is referred to as Cearnings manipulation9. The

remaining performance measures in the thesis are chosen to overcome these three potential drawbacks.

0.

An empirical study of the value creation in +,A - in relation to the strategic rationale 6.1.2. Return on sales "#$T%& !ased on "#$T and

4eturn on sales 4B&" is a measure intended to evaluate the operational efficiency of a company and the margin expresses the profit that is produced per unit of sales. An increasing 4B& indicates that the company is becoming more efficient and at the same time better prepared to resist periods of e.g. falling prices or increased competition* which might result in deceasing sales. 4eturn on sales is calculated as the operating income divided by the sales of the year. The return on sales measure is constructed based on both 5'IT and 5'IT6A* and is thus made independent of both financing and accounting decisions. 'y including 4B&* two of the three drawbacks in relation to 4BA are addressed* that are Chistoric cost9 and Cnonoperating assets9. The main advantage of return on sales is the fact that it is constructed based on figures from the income statement* and so the ratio is in current currency. As mentioned* the operating figures have drawbacks and as such 4B& is not free of disadvantages since it does not directly measure the productivity of assets. It is possible to increase sales and operating income without increasing the assets within the company* this is clearly an improvement Fyon* !//3" 6.1.3. 'ash assets (lo) return on of productivity. )owever* if sales and operating income increase proportionally the return on sales will not reflect increased productivity. 'arber and

7ash flow return on assets measures the operating efficiency of a company in terms of cash generated from operations per unit of total assets. It is calculated as the operating cash flow divided by the average of beginning and end year book value of total assets. Thus it shows how well the company generates cash from the investments in assets. A higher cash flow return on assets is an indication of greater efficiency in generating cash from investments in assets. The main reason for including this operating measure in the analysis is the fact that it overcomes the potential problem of earnings manipulation. In cases when

managers manipulate earnings to correspond better to their intentions a 4BA measure will become biased and less reliable. A cash flow return measure

overcomes this problem. )owever* this is a measure that fluctuates greatly with changes in cash flow. This is a significant disadvantage seeing the cash flow changes greatly in relation to a merger or

03

An empirical study of the value creation in +,A - in relation to the strategic rationale an acquisition and therefore it becomes difficult to compare the acquiring company to companies unaffected by the acquisition. 6.1.*. To!in+s , The final operating measure in this thesis is Tobin9s :* a performance measure that serves as a proxy for the growth opportunities within the company. Tobin !/3/" defined Tobin9s : as the market value of assets divided by the replacement cost of assets. The market value of assets is the market capitalisation defined as the number of outstanding shares times the stock price on the last trading day of the year. The replacement cost of assets is represented by the book value of total assets. If the value of a company given by the financial markets equals the book value of the assets Tobin9s : is equal to !. A Tobin9s : between 2 and ! indicates that the particular stock is undervalued and a ratio higher than ! is an indication of an overvalued stock. Fang et al. !/>/" interpret the Tobin9s : ratios as an indication of the company9s management skills where a ratio above ! implies good management skills and a ratio below ! is an indication of poor management skills. Tobin9s : is a simple measure that is easy to calculate and interpret* however* in order for the Tobin9s : to yield meaningful results an accurate measure of both market capitalisation and replacement cost is needed. In fact detecting a Tobin9s : higher than ! could be an indication of an upward bias due to a less accurate measure or it could indicate a price above the competitive levels* thus conducting a test with Tobin9s : it is important to keep the potential bias in mind. The null hypothesis used in relation to the Tobin9s : is different from the ones used to analyses the other performance measures. =hen analysing the Tobin9s : ratios they must be compared to the value ! because that is the ratio the companies are striving to obtain. 0.!. % ent da*) e ent window and estimation period +easuring abnormal performance on operating figures* the definition of the event day and the estimation period are different from an event study on stock prices. In case of operating figures the event study is not based on a single event day instead it is based on the accounting year in which the merger or the acquisition is completed. It is important to observe the event year as the year in which the deal is completed since the accounting 0;

An empirical study of the value creation in +,A - in relation to the strategic rationale figures do not respond to rumours or announcements seeing that the book value of the company do not change until the deal is actually completed. The estimation period is used to obtain a measure for the Cnormal9 or

expected performance in the absence of an event. To be sure that this measure is in fact unaffected by the event the estimation period is the accounting year prior to the event year. According to 'arber and Fyon !//3" it is important to base the measure of expected performance on past performance and so the estimation period should be prior to the event year. 0.#. +reating a benchmar& - performance based According to 'arber and Fyon !//3" the best way to set up a benchmark is

to benchmark against past performance and industry. )owever* benchmarking against past performance is the most important. 6ue to the limited scope of this paper the data collected for the thesis was in some ways limited* and it was considered that the data was not adequate for benchmarking against both performance and industry. Therefore* in this thesis benchmarking is made exclusively on past performance. Aurthermore* their work also concluded that in order to obtain powerful test statistics it was important to maintain a constant comparison group throughout the analyses for which reason the benchmark group is kept constant over time as well as over operating figures. The approach for creating a benchmark based on the past performance is in line with the recommendations of 'arber and Fyon !//3". The comparison group is based on the 4BA in the year prior to the event year. This ensures that the benchmark is created on past performance unaffected by the event itself. The comparison group includes all companies with a 4BA of G !2 L of the company9s 4BA. In most cases this yielded a comparison group consisting of more than the company itself* however* in some cases no companies fall within the comparison group and in these cases the benchmark is created based on the company that had an 4BA closest to the company in question. The benchmark was finally calculated as the median 4BA of the comparison group. To calculate benchmarks for the remaining years of interest to the analysis and to calculate the benchmark for the remaining operating figures* the comparison group is kept constant and the median is calculated for each operating figure in each of the years (!* event year* N!* N0 and N#. 0>

An empirical study of the value creation in +,A - in relation to the strategic rationale 0.$. 1pecification of statistical tests . 'arametric and non-parametric tests As with the event study based on stock prices both parametric and non(parametric tests are applied to detect abnormal operating performance. Aollowing 'arber and Fyon !//3" the reason for including both tests is the fact that a sample which consists of extreme observations makes the parametric test less powerful and in these cases a non( parametric test is preferred. 'oth the parametric and the non(parametric tests are based on the change in a company9s operating performance relative to the change in the appropriate benchmark. According to 'arber and Fyon !//3"* testing for abnormal operating performance based on changes yield more powerful tests than if applying the level of the performance. To calculate the abnormal performance the first thing to do is to calculate the actual differences as well as the benchmark differences between . the periods of analysis. The abnormal performance is then calculated by subtracting the benchmark difference from the actual difference* that is A<it R S<it ( S5 <it". The calculation of abnormal performance is repeated for each company* each year and each operating figure. )aving determined the abnormal performance it is possible to perform analysis of abnormal operating performance* which in this case is tested by means of the following two testsD E E <arametric t(test =ilcoxon &igned 4ank test

In the following section the two tests will be presented. Aocus will be upon the null hypothesis and the most important aspects of each test. It will thus not be a comprehensive elaboration of each test. 6.*.1. -arametric t-test (or a!normal operating per(ormance As with the parametric test with respect to stock prices the t(test focuses on the cumulative abnormal performance 7A4". To calculate 7A4 with respect to operating figures the aggregation takes place over the yearly abnormal performance measures. That is when calculating 7A4 for the event year it only consists of the abnormal performance measured as the difference between the pre(event year and the event year . The difference in the performance measures and the corresponding benchmarks are calculated over the periodsD year (! to event year* event year to year !* year ! to year 0* and year 0 to year #.

0/

An empirical study of the value creation in +,A - in relation to the strategic rationale and so forth. Again it is necessary to aggregate over time for each company and across companies at each point in time. Ainally the average 7A4 is calculated and applied to test the null hypothesis of no abnormal operating performance* here that the average 7A4 is equal to @ero. As with the t(test performed on stock prices this particular t(test is submitted to the same assumption in relation to the distribution of abnormal performance. It is likely that these assumptions are violated making the results less powerful. Aurthermore* when the objective is to analyse operating figures it is likely that a few extreme observations will affect the average 7A4 and then affect the conclusions that can be drawn from the test. A t(test based on unwinsori@ed data will result in conservative tests compared to non( parametric ones due to the extreme observations in the data. To overcome this problem winsori@ed data is applied. In this way the extreme observations that fall outside the st ! th st th and // percentiles are replaced by respectively the ! and // percentile. 'y applying winsori@ed data the conservatism disappears. 'arber and Fyon* !//3" 6.*.2. .ilco/on per(ormance Signed Rank test (or a!normal operating

To overcome the potential problems with respect to the assumptions a non( parametric test is also performed ( in this case the =ilcoxon &igned 4ank test. The test is based on the assumption that the probability of observing a positive difference is the same as the probability of observing a negative difference* which leads to the null hypothesis of a median abnormal operating performance of @ero. To obtain the test statistic the starting point is the abnormal performance* which is calculated by subtracting the benchmark the median in the benchmark group" from the actual performance based on differences. Airst* the absolute values of the abnormal

performance is ranked* the lowest abnormal performance is given rank !. Afterwards* the original sign is reassigned to the ranks. Third* the ranks with a positive sign are summed and the ranks with a negative sign are summed. Ainally* the sum of both positive and negative ranks is calculated and tested against the null hypothesis* expecting the sum of ranks to be @ero* which corresponds to an equal probability of observing a positive or a negative sign.

#2

An empirical study of the value creation in +,A - in relation to the strategic rationale

=. T* # fo, (iff*,*n%* )*#:**n #-* #,$#*4i* =hen comparing the average 7A4s for the six original strategies and the two combined strategies an A(test is applied. There are two reasons why computing multiple t(tests instead of the A(test does not work. The first reason is that one would have to perform the t(test multiple times* which leads to the second reason* concerning the increasing risk of making a Type I error. +aking a Type I error means rejecting the null hypothesis when it in fact is true and by computing multiple t(test the probability of making the Type I error increases proportionally by the number of t( tests. A method to circumvent this problem is by decreasing the significance level alpha* howeverM this will increase the risk of making a Type II* where the null hypothesis is not rejected even though it is false. Therefore* when comparing the means of more than two populations the analysis of variance must be used. As for other parametric tests* the analysis of variance has some assumptions that need to be fulfilled before the conclusion is reliable. In the case of the analysis of variance independence between cases must exists* the random variables must be normal distributed and the population variances must be equal. The assumption most frequently violated is the normal distribution of the random variables. This problem can be resolved by the use of transformation. The methods used in most cases are squaring the variables* taking the logarithm* the square root or the reciprocal value of the random variables and afterwards conducting the A(test as well as the confidence intervals again. The conclusions based on the transformed variables will now be reliable because the assumptions will be fulfilled. In this thesis the transformations are conducted by raising the 7A4s to the power of 2.. because this transformation diminishes the impact of extreme outliers and the histogram of the abnormal returns becomes more bell shaped. The result of the A(test gives an indication of whether or not a difference between the population means exists. )owever* the test does not indicate between which means the difference exists and therefore* to be able to examine the pair wise differences three methods are available.

#!

An empirical study of the value creation in +,A - in relation to the strategic rationale The first method used to create the simultaneous confidence intervals is the Aisher9s Feast &ignificant 6ifference F&6" which uses the &tudent t distribution to test whether differences exists by use of an adjusted variance. Bne drawback in relation to this method is* that it becomes more and more unreliable as the number of comparisons increases due to the problems regarding the Type I errors as mentioned above. This is the reason for employing the second method called the 'onferroni Adjustments to F&6 +ethod which modify the alpha level according to the number of pair wise comparisons included in the test. This adjustment increases the risk of conducting the Type II error. The most powerful test named Tukey +ultiple 7omparison +ethod addresses both the Type I and the Type II problem. The test determines if any pairs of the sample means have a greater difference than the critical value. In theory this method requires the sample si@es to be equal* nevertheless* in most cases this is not the case and adjustments can be made to overcome this requirement. In some cases* the A(test rejects the null hypothesis concluding a difference exists* however* at the same time the Tukey test does not reject the null hypothesis and thereby concludes that no difference exists. This can happen because Tukey is a more conservative approach by only looking at the pair wise differences. $nder the null hypothesis for the A(test all the population means are expected to be equal and the alternative hypothesis expects at least one of the means to differ. In reality* what the A( test does is to look at linear contrasts whereas pair wise comparisons are only one of many linear contrasts. Therefore* when two opposing conclusions occur the final conclusion must be that no significant difference is found between the means.

7. O'*,'i*: $n( (i %!

ion of #-* ,* *$,%- $55,o$%- $n( #-* *"*%#*( #* #

'efore focusing on the empirical results a short overview of the selected tests is presented here as well as a discussion of the appropriateness of the research approach. 2.1. 3 er iew approach of the research

=ith respect to examining abnormal returns based on stock prices the following four tests are conductedD E E <arametric t(test 1on(parametric tests - 4ank test* &ign test and ?enerali@ed &ign test #0

An empirical study of the value creation in +,A - in relation to the strategic rationale These tests are performed for test of short(term abnormal performance and are conducted on different periods of time ( the event window* ! month* # months* 3 months and ! year. Airst* the performance of the entire sample is tested in order to detect abnormal returns on an overall scale. Afterwards* the tests are conducted on each strategy in order to detect possible differences in performance in relation to the choice of strategy. The reason for applying stock prices exclusively to the analysis of shorter time intervals is an attempt to avoid possible macroeconomic tendencies from influencing the stock prices and the conclusions. Abnormal operating performance is measured by means ofD E E <arametric t(test 1on(parametric test - =ilcoxon &igned 4ank test

=ith respect to abnormal operating performance focus is upon the long run abnormal performance and these are also conducted on different periods of time event year* ! year* 0 years and # years after the event year. Again the tests are performed on the total sample and afterwards on each strategy separately. Ainally* in relation to both stock price performance and operating performance a test for differences between the strategies is conducted by means of an A(test as well as pair wise difference methods. 2.!. "iscussion of choice of research approach 7onsensus is as mentioned to apply the event study methodology when testing the effects of an event upon the performance of the company and in this aspect the method chosen is appropriate. Aurthermore* the parametric test and the non( parametric tests are all conducted in line with recommendations from other research papers in the field* in particular 'rown and =arner !/>." and 'artholdy et al. 022;" and so the method and the tests that are chosen are considered to be appropriate. 'rown and =arner !/>."* 'artholdy et al. 022;"* +ac%inlay !//;"* and 'arber and Fyon !//3" have been the main literature in determining the method for evaluating performance and the included tests are in line with their recommendations. In defining and performing the various statistical tests the original authors have been applied in order to perform the tests correctly. This approach of relying on previous empirical work in deciding upon the most constructing the tests in line with what is ## relevant tests* and afterwards

An empirical study of the value creation in +,A - in relation to the strategic rationale recommended by the professor ( who actually designed the test ( is considered to be an appropriate and relevant way to determine how to conduct an event study. In conclusion* the overall research method and the statistical tests are appropriate for this type of research and furthermore* in line with previous empirical work. +ost empirical work in this field of research is agreeing that the best choice is to perform both parametric and non(parametric tests to support the conclusions and not only rely upon one test. +ost of the statistical tests have some drawbacks or at least some potential problems and by applying more than one statistical test* the results will support each other and it is possible to address the drawbacks. In choosing which tests to apply to a certain research problem it is necessary to keep in mind the data that is to be analy@ed and in many cases it is appropriate to adjust the data to overcome potential problems* and thereby improving the power and specification of the tests. 7onducting analysis upon stock prices a potential problem is thin trading* which is common on smaller stock exchanges. The data in this thesis shows evidence of thin trading and so trade(to(trade returns have been applied in order to overcome the problems with thin trading. According to 'artholdy et al. 022;" thin trading can be adjusted in several ways - +issing data* lumped returns* uniform returns and trade(to( trade - however* the recommendation from this work is to adjust for thin trading by means of the trade(to(trade adjustment seeing that the power and specification of the test is improved the most. In analy@ing the operating performance winsori@ed data has been applied in order to avoid outliers that would influence mean and variance and in that way make the parametric t(test less powerful. The choice of winsori@ing the data is equally in line with what is recommended in research literature. In the thesis both parametric and non(parametric tests are included. This is considered to be an important and correct decision. The parametric t(test is under ideal conditions the most powerful test. )owever* as mentioned* the t(test is

submitted to stringent assumptions in relation to the distributions of returns and in those cases when the assumptions are violated the power of the test is reduced. The main advantage of including non(parametric test is the fact that they are not restricted by the same assumptions and thus under less ideal conditions the non( parametric tests becomes more powerful than the parametric tests. In relation to the analysis of abnormal stock price

#8

An empirical study of the value creation in +,A - in relation to the strategic rationale performance three non(parametric tests are performed - the 4ank test* the &ign test and the ?enerali@ed &ign test. In comparing the power of the non(parametric tests the 4ank test is the most powerful of the three under ideal conditions. The ?enerali@ed &ign test has more power than the &ign test* and in the case of an increasing event window it also outperforms the 4ank test. 7owan !//0" In relation to measuring abnormal performance based on either stock prices or operating figures it is recommended to apply non(parametric tests instead of parametric tests due to the non(parametric tests having more power. The conclusion in favour of the point of view that the non(parametric tests are more powerful than the parametric one is an indication of the fact the assumptions are violated seeing that otherwise the power of the t(test should have dominated. In relation to stock price performance 'artholdy et al. 022;" emphasi@es non(parametric tests compared to parametric ones and in the case of operating performance 'arber and Fyon !//3" concludes that the =ilcoxon &igned 4ank test outperforms the parametric test. <rior to performing the analyses and based upon previous research it is expected that in order for the parametric t(test to be well specified a quite large sample is needed in order for the assumptions not to be violated. This poses potential problems in relation to the smallest of the six strategies in this thesis namely C4,69 and C7onvergence9" and the result might be that the returns are not normally distributed and the conclusions are less reliable. The larger the sample the more likely it is that the assumptions are fulfilled. In these cases with violations of assumptions the conclusions drawn from the parametric t(test must be compared to the conclusions drawn from the non(parametric tests to verify the power. In relation to the non( parametric tests it is expected that the tests are well specified and in detecting abnormal performance these conclusions should have higher reliability than the corresponding parametric ones. 6espite the fact that the selected tests in this thesis are designed in correspondence with recommendations from previous research literature* there might still be some potential problems or biases that might influence the results* but which have not yet been addressed.

#.

An empirical study of the value creation in +,A - in relation to the strategic rationale These potential biases are in cases of stock prices among other things related to the benchmark portfolio. In this case as in many other cases a market index is chosen as a measure for the normal performance against which the individual abnormal returns are calculated. According to 'arber and Fyon !//;" the choice of the market index as reference portfolio poses three potential biases in particular in relation to longer time intervals. These biases are referred to asD Cnew listing bias9* Crebalancing bias9* and 3 Cskewness bias9. These biases are relevant in relation to analysis of long run abnormal performance. In relation to this thesis the analysis of stock price performance is restricted to shorter time intervals* therefore these biases are not considered to be severe* except for perhaps on the one year time period after the event. Aurthermore* a potential and probably more important bias is related to the presence of variance increases around the event day. The increase in variance stems from the fact that it takes time to process new information and at the same time stocks are expected to react differently to news. This results in an increase of the variance for the individual stock as well as an increase in the cross(sectional variance. This problem of event( induced increase is addressed by among othersM 'oehmer et al. !//!"* 'rown and =arner !/>."* and 'artholdy et al. 022;". Aailure to adjust for the event(induced variance increases the estimated variance used in the event study making it likely to underestimate the variance in the event window* which is likely to lead the conclusion in which the decrease. The final bias discussed here is in relation to the creation of a benchmark for operating figures. It is already mentioned that the best way to create a benchmark is by applying both past performance and the industry. In this thesis benchmarking is performed only upon past performance the most important". The benchmark group is kept constant over time as well as across performance measures. In creating the benchmark based on 4BA 5'IT" and applying this to the remaining five performance measures might bias the results. It is likely that the median calculated for the remaining performance measures are affected by some extreme observations due to the fact that the benchmark 3 The Cnew listing bias9 refers to the potential problem in relation to the analysis of long(term stock price performance. $sing the market index as the benchmark could possibly create a bias due to the composition of the index that might change over time. The Crebalancing bias9 refers to the fact that market indexes usually are rebalanced frequently while the sample firms are not rebalanced. Ainally* the null hypothesis is rejected too often. The significance of this bias will determine how much the reliability of the tests will

Cskewness bias9 refers to the fact that the long run abnormal returns are positively skewed. #3

An empirical study of the value creation in +,A - in relation to the strategic rationale group might contain observations falling outside the intended interval of G !2L. This decision might influence the results and remains a potential improvement for further research. Bverall* the research approach is well specified and well documented and furthermore appropriate for an event study of this kind. 6espite a few potential biases that have not been addressed it is still considered that the method applied to this thesis is in accordance with similar work in the field. 6ue to limited scope and time for preparation of the thesis these potential biases have not been addressed and instead only minor focus will be paid to these biases and they will remain recommendations for later improvements of this event study. In the following a brief presentation and description of the data used in the thesis is provided. This is to serve as a starting point before presenting* discussing and evaluating on the empirical work. The aim of the descriptive statistics is to provide an overview of the sample on which the event study is based.

@. D* %,i5#i'* #$#i #i% 'efore going into debt with the analysis to be performed in this thesis a short description of the data is presented. As mentioned earlier* the event study is attempting to detect abnormal returns in a sample of /./ mergers and acquisitions from the time period 0222 to 0228. 'y use of this sample the two subgroups C6aily stock returns9 and CAccounting figures9 are created consisting of 8!2 deals and #>/ deals. The break down into the different strategies is illustrated in table /.!.

#;

An empirical study of the value creation in +,A - in relation to the strategic rationale The selected data for this thesis has resulted in an unequal distribution of deals in each group - strategy. It is considered that it would has posed a bias to the study had the selection of data been performed in order to secure the same number of deals in each group. This is also in line with 'ower difference is traceable between the different strategies 022!" in which a clear and the number of

transactions in each strategy. 'artholdy et al. 022;" conclude that at least 0. events are needed in order to secure adequate power of the test that is conducted. In line with this the initial objective was to ensure at least 0. events in each strategy. 6iscarding the division of deals between strategies and maintaining focus upon documenting the right strategy the result was two samples with the characteristics illustrated above. The strategies named C?eographic9* CBvercapacity9* C+arket N <roduct9* C7onvergence9 and C4,69 are inspired by 'ower 022!". The reason for dividing the strategy C+arket N <roduct9 into two groups is expectations of differences between the two strategies. The last group* C4,6 N 7onvergence9 is constructed to overcome possible difficulties with respect to the power of the tests since the samples consist of less than 0. deals. As mentioned in the introduction the +,A activity varies over time ( a phenomena known as Cmerger waves9. The sample in this thesis is constructed by deals over a period of five years and different aspects might have influenced the +,A activity. Bver the years different macro economic trends and events may have influenced the willingness to engage in mergers and acquisition. +ost importantly the burst of the Internet bubble in 0222 but also /O!! in 022! have influenced the financial markets and potentially the creation of abnormal performance - at least abnormal stock performance. In relation to the macro economic trends a distinction between countries and year of the transaction might yield relevant information* which is illustrated in the following sections. 4.1. "escription strategies of the

As mentioned above* 'ower 022!" divides the motives for completing a merger or an acquisition into five strategies. Aor companies who follow the C?eographic 4oll(up9 strategy some common characteristics are the fact that they believe in local presence* and therefore* the companies they acquire abroad keep their own brand name. The main reason for engaging in a merger or an acquisition is to obtain synergies from an increase in capacity* economy of scale* and cost cutting. The industry in which these companies #>

An empirical study of the value creation in +,A - in relation to the strategic rationale often operate can be described as highly fragmentedM an example is the financial industry. The strategy CBvercapacity9 is used by companies in mature industriesD like mining* manufacturing* transport or utilities where excess capacity exists. 6ue to competition the companies9 attention is focused on optimi@ing their core business and reducing production costs. 7ompanies need to consolidate within this kind of industry* because the way to survive is by becoming a significant player. =hen a company follows the C+arket N <roduct9 strategy the motive is twofold. The purpose might be to get a broader international reach and thereby enter a new country. Btherwise* the motive could be to strengthen the product line by focusing on the core business units or expand into new products* which support the existing product mix. An additional rationale within this strategy is to reinforce the value chain as a whole* which can be done by hori@ontal integration where the company merge with or acquire a competitor or by vertical integration where the company incorporates the resources from a supplier into the existing value chain. This strategy is used by companies from almost all industries due to the general motive of enforcing the value chain. The C4,69 strategy is used mostly by pharmaceutical and software companies because the motive behind a merger or an acquisition is to buy know(how or new technology and thereby not use own research and development resources to increase the knowledge of the company. The last strategy called C7onvergence9 is used when the motive is to enter new business areas that have very little or no relation at all to the existing business units. The rationale is that the new business has a huge growth potential and may be a good complement to the existing business. An example could be a hotel* which decides to buy a company producing soft drinks. These two industries are not directly related but complement each other. 4.!. "escripti e statistics . "ail* stoc& prices The sample included in the analysis of daily stock prices consists* as mentioned above* of 8!2 completed deals* a list of these are displayed in appendix '. Table /.0.! illustrates how many of the deals were completed with an acquirer located in the $% or within the &candinavian countries respectively as well as the number of deals completed within each year of the period analysis.

#/

An empirical study of the value creation in +,A - in relation to the strategic rationale

As can be seen from the table the deals made by $% acquirers accounts for more than three quarters of the total sample and thereby trends within the $% market may have a significant influence on the results of the analysis. Also the fact that the deals completed within the $% during the year 0222 make up more than one third of the sample is worth noticing. A reason could be the effect of the Internet bobble* which made a huge amount of companies participate in merger and acquisition activities. It is also noticeable that the number of deals decreases during the period of analysis with respect to all countries indicating a Cmerger wave9 peaking around 0222 and declining afterwards. 4.#. "escripti e statistics . Accounting figures The sample analysed with respect to the performance measures includes #>/ deals* which are divided as illustrated in table /.#.! presented below. The list of deals is disclosed in appendix 7.

82

An empirical study of the value creation in +,A - in relation to the strategic rationale As was the case when using the daily stock prices the deals completed by an acquirer located in the $% accounts for around three quarters of the total deals included. =hen examining the development in number of deals completed during the different years within the analysis period it appears that the year 0222 and the 022! both experienced a huge number of deals whereas the number decreased afterwards. This development indicates that the wave peaked around 0222O022! and started declining in 0220. The overall trends illustrated by both tables are the facts that the $% acquirers account for around three quarters of the total deals included and a possible merger wave peaking around the year 0222 and 022! is detected.

+8. H&5o#-* * $n( *A5*%#$#ion in ,*"$#ion #o #-* *15i,i%$" ,* !"# The following section is a presentation of the hypotheses that represent the expectations in relation to empirical results are evaluated. The research question in this thesis has been created based on an examination of the available literature in relation to value creation in mergers and acquisitions. The available literature does not present a unique consensus in whether or not value is actually created. The research question in this thesis was as mentioned* primarily based on the two articles by +oeller et al. 022." and 'ower 022!" which also served as the base for the expectations to the event study. Bverall* it is clear that the motivation for the acquiring company is to create value. )owever* it should in this case be kept in mind that the value the acquiring company expects in relation to a merger or an acquisition not necessarily has to appear right after the deal is completed. It is likely that the expected value effect will not show until a while after the acquisition. )owever* despite the potential passing of time before the gains from the merger or the acquisition reveal themselves the main motive is still value creation. 6epending on the motive for the transaction or the strategic rationale the expected result of the merger is likely to vary - and in relation to this it is also likely that the time period* which needs to pass before value is created* might also differ. If for instance the acquiring company uses mergers or acquisition to create innovation instead detecting abnormal performance. Afterwards the

8!

An empirical study of the value creation in +,A - in relation to the strategic rationale of relying on their own 4,6 resources* the gains from the deal is likely to evolve after several years. =ith the main objective from the acquirers9 perspective being value creation a clear difference exists between that objective and empirical evidence of value destruction. These opposing views are considered in formulating the expectations regarding the empirical results from this event study. According to +oeller et al. 022."* their analysis indicated that value was destroyed in the sample of $& based companies engaging in +,A. The reason for this overall tendency was found in relation to a group of deals in which very large losses occurred. This group of large loss deals resulted in an overall conclusion in favour of value destruction* despite the fact that the remaining companies actually created value if considered separately. The existence of a group of companies experiencing very large losses is considered likely in the case of $% based and &candinavian based companies* and therefore* a similar trend is expected in this thesis. This is supported by the fact that the main part of the deals included in the sample are $% based and seeing that the +,A activity in the $% corresponds well with the trends from the $& it is likely that value destruction would be present in this thesis as well. &udarsanam* 022#" This serves as the basis for the following overall hypothesisD 01pothesis $2 34erall5 mergers and ac6uisitions )ill destro1 4alue (or the ac6uiring compan1. According to 'ower 022!" as already mentioned* the result from a merger or an acquisition depends on the underlying strategy or rationale behind the deal. The rationale behind a certain deal is equally linked to the integration process following the deal* which poses great challenges to the acquiring company where the integration need to be structured and carefully prepared in order for the merger or the acquisition to become a success. )owever* when the rationale is well documented and the integration process is successfully constructed* the merger might turn in to a success. In those cases* when the rationale for a deal is thought through the quality of the post integration will be inferior and the success of the deal is questionable. =hen the deal is not carefully prepared and the success is doubtful the conclusions by +oeller et al. 022;" are supported. As pointed out by 'ower challenges in successfully 022!" the

80

An empirical study of the value creation in +,A - in relation to the strategic rationale completing a specific merger or acquisition differ between the strategies supporting the conclusion that the performance of the acquiring company will vary. &ome strategic rationales are expected to be easier to overcome successfully than others. This results in the second overall hypothesisD 01pothesis $$2 The post-merger per(ormance o( the ac6uiring (irm is dependent upon the underl1ing strateg1 or rationale (or the deal5 and there(ore5 a di((erence !et)een the strategies )ill !e detected. It is likely that the results in relation to value creation will differ over time. It is therefore necessary to focus upon performance in the short term as well as in the long term. Bverall stock prices have been applied to detect abnormal performance in different periods ranging from the event window of !! days and up to a one year period after the event. Around the event the stock prices are expected to respond to news in relation to an upcoming merger. According to +ac%inlay !//;" news that is perceived as good news will affect the stock market positively. In relation to this* it is expected that most announcements of mergers and acquisitions will be perceived as positive news* which will result in a positive reaction in stock prices in the days following the announcement. According to the efficient market hypothesis 5+)" stock prices will react immediately to new information. This aspect combined with a presumed positive reaction to good news is expressed by an expectation of a positive reaction in the very short run - in this case the event window of !! days. This expectation is supported by the studies conducted by Aranks , )arris !/>/" and ?oergen , 4enneboog 022#" presented in section #. 7oncerning the long(run the studies by Arank , )arris !/>/" and 'aker , Fimmack 0220" presented in section # all documented negative abnormal returns. This leads to the following hypotheses in relation to the time aspectD 01pothesis $$$2 $n the 4er1 short-term an announcement o( a merger or an ac6uisition )ill result in a positi4e reaction in the stock price. 01pothesis $72 $n the longer term 8up to one 1ear a(ter the e4ent9 a merger or an ac6uisition )ill result in no or a negati4e reaction in the stock price. The another aspect* which will be examined in this thesis* is whether or not a difference between the earning based measures and cash flow measures end up with the opposite

8#

An empirical study of the value creation in +,A - in relation to the strategic rationale conclusions concerning the operating performance* which is expected based on previous empirical work. 01pothesis 72 #1 means o( the earnings !ased per(ormance measures a completion o( a merger or an ac6uisition )ill result in a decline in 4alue )hereas !1 means o( cash (lo) !ased measures no change in the operating per(ormance )ill !e detected. In addition to the time aspect the choice of test will also affect the results of the empirical work. As discussed above the choice of parametric or non(parametric tests may influence the results. The parametric tests are submitted to some fairly stringent assumptions in relation to the distributions and in cases when the assumptions are violated* the results of the tests are not fully reliable. This provides further grounds for the non(parametric tests. In large samples the assumptions are likely to hold and thus the results are likely to be reliable* while in very small samples the assumptions are expected to be violated and the results less powerful. In relation to the parametric t( tests of abnormal performance the reliability of the tests depends on the sample over which the test is conducted. In relation to the total sample it is expected that the assumptions will hold and that the parametric t(tests are reliable* concerning the smallest samples C4,69 and C7onvergence9" the assumptions are likely to be violated and so the conclusions should not stand alone. =ith respect to comparing the parametric tests with the non(parametric tests it is expected that in those cases when the parametric tests are well specified the two types of tests will yield similar results. )owever* when the parametric tests are not well specified the two types of tests are not expected to yield similar results. This result in the following hypothesisD 01pothesis 7$2 The empirical results !ased on parametric and non-parametric tests are similar onl1 )hen the parametric tests are )ell speci(ied5 that is )hen the assumptions are not 4iolated. The hypotheses stated above are evaluated based on the empirical work that is conducted in relation to this thesis and the evaluation of the research question and the hypotheses are not primarily compared to or based on previous work. In some cases comparisons to previous work will be presented if they support the empirical results or directly oppose the results.

88

An empirical study of the value creation in +,A - in relation to the strategic rationale

++. E15i,i%$" *'i(*n%* > $)no,1$" #o%6 5,i%* 5*,fo,1$n%* In this section the performance based on stock prices is evaluated. The analysis of stock price performance is conducted over five time intervals - the event window* ! month after the event* # months after the event* 3 months after the event and ! year after the event. In the following the empirical results from both the parametric t(test and the three non(parametric tests will be presented for each time interval. 11.1. %mpirical results . parametric ttest This test attempts to detect abnormal stock price performance by means of the null hypothesis expecting a cumulative abnormal return 7A4" equal to @ero. =hen the null hypothesis is rejected the 7A4 is different from @ero and thus abnormal returns are generated. 6epending on the sign of the test statistic the abnormal return is either positive or negative. The results from the parametric t(test are displayed in table !!.!.!. ;

The parametric t(test shows some clear trends in relation to the test statistics. The two strategies C7onvergence9 and C4,69 stand out from the other four strategies as well as the results for the total sample. In none of the five time intervals are the test statistics significant in either of these two strategies. As mentioned previously* a sample of minimum 0. observations deals" is needed to detect abnormal performance* and seeing ; &as fileD C&as code - 6aily &tock9 T C<arametric9 T CT(test 5vent" - Total9

8.

An empirical study of the value creation in +,A - in relation to the strategic rationale that the C7onvergence9 and C4,69 strategies consist only of !/ each a potential problem exists in detecting abnormal performance and this might explain why the tests are insignificant. A part from the six separate strategies* two combined strategies are included in the analysis. 'ecause of potential difficulties in obtaining significant test statistics in relation to the two smallest strategies C7onvergence9 and C4,69 a combined C4,6 N 7onvergence9 group have been created. As the combined group consists of #> observations the sample in itself is large enough to yield significant and reliable results. In the case of the parametric t(test based on stock prices the combined group C4,6 N 7onvergence9 is unable to yield significant results. It is thus impossible to find evidence of an abnormal performance different from @ero. A potential explanation for the combined strategy being insignificant may be found in relation to the test statistics of the two strategies. C7onvergence9 yields a positive test statistic even though it is insignificant* while C4,69 yields a negative result. The combination of these two groups is likely to end up in between* and so it is likely that the combined test statistics would also be insignificant* as seen in this case. Aocusing on the remaining empirical results the total sample displays significant results in all five time intervals. Bver the event window* the 7A4 is positive indicating an abnormal stock price performance over the !! day event window. In the remaining four time intervals the total sample displays negative test statistics indicating a negative performance in the periods following the event window. The total sample yields positive abnormal performance over the event window* thus indicating a positive effect on the stock price from the announcement of a merger looking at the total sample regardless of the underlying strategy. Aour of the six strategies - C?eographic9* CBvercapacity9* C<roduct9* and C+arket9 also yield significant results. CBvercapacity9 and C<roduct9 are in accordance with the conclusion from the overall sample* indicating a positive reaction to the announcements of mergers and acquisitions. The opposite is found in the remaining two strategies that despite an overall positive reaction indicate negative abnormal performance over the event window. 6espite evidence of positive abnormal performance in the total sample* the conclusion drawn from looking at each of the strategies separately indicates a potential difference between strategies* which supports hypothesis II. 83

An empirical study of the value creation in +,A - in relation to the strategic rationale In the one month after the event the total sample still yields significant results* however as mentioned* it is no longer positive but negative abnormal performance. In this time interval the only two separate strategies that yield significant results are C?eographic9 and CBvercapacity9. C?eographic9 yields results in accordance with the total sample that is negative abnormal performance* while CBvercapacity9 continues to yield positive results and thus indicating is an positive of abnormal the fact performance. the stock 1egative react abnormal performance indication prices

negatively to the announcement of a merger or an acquisition* which means that value is actually destroyed for the acquiring company. The third time interval* three month after the event* is somewhat similar to the conclusions drawn from the one month time hori@on above. Bverall* the total sample displays negative abnormal performance and this result is supported by three of the six strategies. C?eographic* C<roduct9 and C+arket9 all yield negative results and is in accordance with the conclusions from the total sample. )owever* as was the case in the one month interval CBvercapacity9 stands out and displays positive abnormal performance. In the six months and the one year period after the event the results are similar. The total sample shows negative abnormal performance. This is in accordance with the empirical results drawn from C<roduct9 and C+arket9. These two strategies are the only two of the six that yield significant results over these time hori@ons. 1ot surprisingly the same result presents itself when combining the two strategies into C<roduct N +arket9 in which the test also indicate negative abnormal stock price performance. The combined strategy C<roduct N +arket9 is elaborated in the following. This combined strategy yields significant results in all five time hori@ons. Bver the event window the combined strategy displays positive abnormal performance. This conclusion is in accordance with the total sample as well as with the C<roduct9 strategy. )owever* C+arket9 seen in isolation indicates negative abnormal performance over the event window. In the remaining four time intervals ! month* # months* 3 months and ! year" the combined strategy C<roduct N +arket9 shows evidence of negative abnormal performance* which is in accordance with the results from the total sample as well as the results from the two strategies C+arket9 and C<roduct9 seen in isolation.

8;

An empirical study of the value creation in +,A - in relation to the strategic rationale 11.1.1. Ro!ustness and po)er o( the parametric ttest )aving presented the results of the parametric test the assumptions are evaluated in order to determine the power of the test. The assumptions areD normally distributed and independently and identically distributed abnormal returns* an expected value of the abnormal returns of @ero* and a constant variance homoscedasticity". The most important of the assumptions relates to the distribution of abnormal returns that has to be normal. In a sample consisting of daily returns and multiple observations this assumptions is likely to hold when the sum of the abnormal returns becomes large enough. It is thus expected that in most cases it will be reasonable to assume that this assumption is fulfilled. In verifying the distribution for each strategy and over each time interval several histograms are illustrated and a normal distribution curve added to the figure to serve as a proxy for the distribution. 'esides the assumption of normally distributed abnormal returns a second assumption is set up to insure that the different abnormal returns should be independently and identically distributed. This assumption is in many cases assumed to hold* while in fact a potential problem related to assuming that the returns are independent. In the following discussion of assumptions focus will be upon the tests in which the test statistics yields significant results* since these are the empirical results on which the conclusions are drawn. In appendix A the histograms testing the normality assumption are displayed for each of the six strategies* the two combined strategies as well as for the entire sample and also for each of the five time intervals the event window* ! month* # months* 3 months and ! year". In the following a discussion of the normality assumption is presented and afterwards the assumption in relation to independence is discussed. The strategy of C?eographic9 the t(test yielded significant results in three of the five time hori@ons* namely the event window* one month after the event and three months after the event. In all three time hori@ons the normality assumption in relation to the distribution of the abnormal returns are fulfilled* however* in the one month and the three month intervals a large concentration of abnormal returns around @ero is present* but the bell shape of the normal distribution is approximately fulfilled. In relation to C?eographic9 the assumptions connected to the three significant test statistics are valid 8>

An empirical study of the value creation in +,A - in relation to the strategic rationale which in isolation indicates that the empirical results of the t(test in relation to this strategy is robust and valid. Aocusing on CBvercapacity9 as a motivator for mergers and acquisitionsM is a strategy that yields significant results over the same three time hori@ons event window* ! month and # months". In all three time intervals the assumption in relation to the abnormal returns being normally distributed is fulfilled. As was the case with the histograms displaying results for the strategy of C?eographic9 the three month interval displays the bell shape despite the fact that there is a large concentration of abnormal returns around @ero. Again if this assumption is seen in isolation the parametric t(test yield robust and powerful results indicating an abnormal performance different from @ero. In both the case of C<roduct9 and C+arket9 the parametric t(test show evidence of abnormal performance in all time intervals except for the one month period after the event. Bverall* the normality assumption in relation to C<roduct9 holds* despite a larger fraction of abnormal returns around @ero being displayed. This indicates that the empirical results in relation to this strategy are powerful and robust. The same cannot be said about the C+arket9 strategy. Bver the event window the normality assumption holds as the histogram shows the bell shape with larger distribution around @ero. )owever* in the remaining three time intervals the normality assumption is violated. The histograms show no bell shape* but instead only two large pillars around @ero. Therefore* it is problematic to rely too heavily upon the results in relation to the C+arket9 strategy. In order to verify these results non(parametric tests are needed. The combined strategy of C<roduct N +arket9 yields significant results in all five time intervals. The normality assumption is violated in the one month period* seeing that no bell shape can be detected from the histogram* and the distribution is skewed to the right. In relation to the total sample the normality assumption holds in all five time intervals. The distribution of returns is based on a very large sample therefore* it is expected that the distribution will turn out to be approximately normal. The investigation of the histograms presented in appendix A showed* with few exceptions* evidence supporting the view that the abnormal returns are

normally distributed and so the empirical results are reliable. In some cases the concentration of abnormal returns around @ero was implied by the normal larger than what should be

8/

An empirical study of the value creation in +,A - in relation to the strategic rationale distribution. It is considered likely that this is an implication that makes it more difficult to detect differences between means* which then leads to a conclusion that the 7A4s of the different strategies are the same. The investigation of potential differences between the different strategies is elaborated below. )aving examined the distribution of abnormal returns the second important assumption focuses upon independence of observations. As mentioned this is an assumption* which in many cases are assumed to hold. )owever* in the case of mergers and acquisitions this might not entirely be the case. There are some potential problems in relation to assuming that the observations* in this case the deals* are independent. In fact some aspects indicate that there is some interdependence between those companies engaging in +,A. +itchell , +ulherin !//3" among others have found evidence of Cmerger waves9 in which the +,A activity is larger than in other periods. In these periods of increased activity* the different companies are influenced by the trends in the industry and it is questionable whether or not a merger or an acquisition can be considered independent. Another aspect that indicates interdependence between companies is the fact that stock prices are influenced to some extent by trends in the industries. The analysis in this section is based on stock prices and seeing that the stock prices may be influenced by different trends that might affect the company in question making the performance dependant on the industry or the market as a whole. If for instance a certain industry is characteri@ed by excess capacity* and some of the players within the industry engages in +,A activity in order to overcome problems of excess capacity and to improve market shares other companies may be forced to follow suit. In this case mergers and acquisitions might by interdependent. These potential problems in relation to assuming that the independence assumption is not violated indicate that the empirical results from the parametric t(test might not be as robust and powerful as assumed based on the normality assumption. Bverall* the normality assumption is fulfilled* and therefore* do not pose any problems* however* the assumption in relation to identically and returns poses some challenges. independently distributed abnormal

.2

An empirical study of the value creation in +,A - in relation to the strategic rationale Bverall* the conclusions from the parametric t(test imply that differences might exist between some of the six strategies even though the total sample displays results in one direction. In order to determine if differences between the six strategies actually exist an A(test need to be conducted. The results of the A(test are presented below in section !!.#. 11.!. %mpirical results . the non-parametric tests 5vidence from the parametric t(test indicated some problems in relation to the underlying assumptions and therefore relying exclusively upon the parametric test is problematic. Therefore three non(parametric tests have been conducted and are evaluated in the following. 11.2.1. "mpirical results o( the Rank test As with the parametric t(test* the aim of the 4ank test is to detect abnormal performance based on the null hypothesis of @ero abnormal performance. A positive and significant test statistic indicates that value is being created and the abnormal return is larger than @ero* while a negative significant test statistic corresponds to value destruction. Ainally* an insignificant test statistic indicates that based on the data the test is unable to detect any deviations from @ero abnormal return. The results > from the rank test are displayed in table !!.0.!.!.

The main observation from this test is the fact that all but two test statistics are insignificant meaning that it is impossible to draw any inferences in relation to whether > &as fileD C&as code - 6aily &tock9 T C1on(<arametric9 T C4ank9 T C4ank 5vent" - Total9

.!

An empirical study of the value creation in +,A - in relation to the strategic rationale or not value is being created. In two cases the rank test is able to yield significant results. In the event window those companies that were motivated by striving for C4,69 seem to actually lose value as a response to the merger or the acquisition. This indicates that the stock market reacts negatively to an announcement of a merger or an acquisition that falls within the category C4,69 in the very short run. This might be well in line with the expectations in relation to the gains from 4,6 not being present until later on. In the three month period following the event* the strategy C?eographic9 shows evidence of positive abnormal performance. The test statistic is positive and significant and so the 4ank test indicates that in a three month interval the 7A4 is different and larger than @ero* meaning that value is created in the three month following the announcement of the merger or the acquisition. In comparing these conclusions to those conclusions drawn from the parametric t( test disagreements are revealed. Airst of all the performance for the C4,69 group was significant and negative when using the 4ank test* while it was insignificant in the t( test. &econd* the performance in the t(test on the three month period indicated that the strategy C?eographic9 showed negative abnormal performance* and so implying that value was lost or destroyed in the three month following the announcement date. In contrast this test statistic showed evidence of positive performance according to the 4ank test. As the assumptions in relation to the parametric t(test are not fulfilled it is problematic to rely on these results. Bn the other hand the 4ank test is unaffected by the assumptions and the most powerful and reliable conclusions are drawn from this test. 11.2.2. "mpirical results o( the Sign test The second of the non(parametric tests is also robust to violations of the assumptions in relation to the distribution of returns* and by including more than one non( parametric test the empirical results will support each other. The &ign test

attempts to detect abnormal performance in the stock prices by means of the null hypothesis of no abnormal return. A positive test statistic is an indication that the amount of positive abnormal returns exceeds 2.. - meaning that value is

created. A negative test statistic

.0

An empirical study of the value creation in +,A - in relation to the strategic rationale indicates that the number of positive abnormal returns is less than 2..* which means that value is destroyed. The results from the &ign test are displayed in table !!.0.0.!. /

The overall impression of the empirical results from the sign test is in line with the results from the 4ank test. All test statistics but one is insignificant* which means that it is impossible to draw any conclusions as to whether or not value is created and it is likely that no abnormal performance can be detected in the data. 6espite a clear overweight of insignificant test statistics one test stand out. Bn the three month period following the event the strategy C?eographic9 show evidence of significant positive abnormal performance. This indicates that a larger amount than half of the daily returns is actually positive* which leads to a rejection of the null hypothesis of @ero abnormal return. This observation is in line with the result from the 4ank test above while in disagreement with the parametric test that displays negative abnormal performance. The fact the two non(parametric tests yield the same result increased the reliability of the conclusion and thus undermines the conclusion that can be drawn from the parametric t( test. The main conclusion from the &ign test is of no abnormal performance* the only significant test statistic three month ( C?eographic9" displays positive performance. +ore than half the returns are positive and a positive abnormal return is detected. This conclusion is in line with the 4ank test* but at the same time it is opposite to the parametric test.

/ &as fileD C&as code - 6aily &tock9 T C1on(<arametric9 T C&ign9 T C&ign 5vent" - Total9 .#

An empirical study of the value creation in +,A - in relation to the strategic rationale 11.2.3. "mpirical results o( the Generalized Sign test The third and final non(parametric test is included as an extension of the &ign test. This test then overcomes difficulties in relation to distributions being skewed. A positive test statistic indicates that a larger fraction of positive abnormal returns are observed compared to what is expected* which indicates positive performance. In table !2 !!.0.#.! the results of the ?enerali@ed &ign test is presented. The main conclusion to be drawn is in accordance with the previous two non(parametric tests indicating that most tests are insignificant. As with the 4ank and the &ign test it is not possible to detect any abnormal performance* since it is not possible to reject the null hypothesis. 1evertheless* three test statistics stand out and yield significant performance.

Again the strategy of C?eographic9 stands out. In the ?enerali@ed &ign test this strategy displays positive abnormal performance during the event window as well as over the three month period following the event. A positive abnormal performance over the event window indicates a positive effect on the stock prices directly following the announcement of a merger or an acquisition. This conclusion is directly opposed to the conclusion likely to be from the parametric t(test. This test indicated a negative abnormal performance over the event window for this strategy. The difference is

!2 &as fileD C&as code - 6aily &tock9 T C1on(<arametric9 T C?en. &ign9 T C?en. &ign 5vent" - Total9 .8

An empirical study of the value creation in +,A - in relation to the strategic rationale explained by violations of the assumptions in the t(test* which lead to problematic test statistics. The three month period displaying positive abnormal performance is in line with the conclusions from the 4ank and the &ign test* while in disagreement with the t( test. The final significant test statistic in this case is the strategy C<roduct N +arket9 which yields a negative abnormal performance over the event window. Fooking at these two strategies combined it appears that the effect of announcing a merger or an acquisition is negatively displayed in the stock prices. This result is also in disagreement with the conclusion drawn from the parametric t(test in which the C<roduct N +arket9 strategy yields positive abnormal performance over the event window* and so indicating a positive reaction in the stock prices to an announcement of a merger or an acquisition. The non(parametric tests are considered to be more powerful and reliable when violations of the assumptions are a problem therefore* the conclusions should be based primarily on the results from the parametric test. Again the overall impression is of insignificant tests however* in three incidents do the conclusions differ from this impression. In relation to C?eographic9 the event window and the three month interval show positive performance while the C<roduct N +arket9 yields negative performance on the event window. 11.#. %5amining strategies differences between

As mentioned earlier it is necessary to conduct an A(test in order to determine if any differences can be detected between the strategies. The A(test is presented in the following. The A(test gives an indication of whether or not differences exist. To determine where the differences are three pair wise difference methods are included - F&6* 'onferroni* and Tukey. In appendix ) an overview of the assumptions in relation to the A(test and the analysis of the pair wise differences where the A(test is significant" are presented for each time interval. The result of the A(test is displayed in table !!.#.!. !!

!! &as fileD C&as code - 6aily &tock9 T CA1BQA9 T CA(test - 6aily &tock ( 5vent"9 ..

An empirical study of the value creation in +,A - in relation to the strategic rationale

In order for the A(test to display any differences between the strategies the test statistics in the table above need be significant. The potential differences between the strategies are examined for each time interval at a time. The A(test for the event window is insignificant* which indicates that based on the data available it is not possible to identify differences between the 7A4 for each strategy. Bn the one month interval following the event the conclusion in relation to the A(test is the same as in the case of the event window. It is not possible to detect any differences* thereforeM no evidence of differentiation between strategies can be detected within these two time intervals. This result is reliable for both time intervals seeing that both the assumption of normality and as well as that of variance homogeneity are fulfilled. 6ue to the fact that no differences are detected in these two time intervals the methods for detecting pair wise differences are not conducted. The remaining three intervals yield significant test statistics and show evidence of differences between the strategies though* in case of the longest time interval of one year following the event the test is only significant on a !2L significance level. In all three time hori@ons both the assumption of normality and that of variance homogeneity hold. In the following the tests for pair wise differences are presented. Bver a three month period following the event the overall A(test indicates that a difference between the strategies exists. 'y means of F&6* 'onferroni and Tukey dissimilarities between strategies are examined. The first of the three methods* F&6* shows evidence of differences between the strategy CBvercapacity9 and the strategies of C+arket9* C<roduct9 and C<roduct N +arket9 respectively. In the case of the 'onferroni method a difference is still detected* however* in this case it is only between the .3

An empirical study of the value creation in +,A - in relation to the strategic rationale strategies of CBvercapacity9 and C<roduct N +arket9. This conclusion is supported by the most robust and the most reliable of the three tests* Tukey* which also yields a significant difference between CBvercapacity9 and C<roduct N +arket9. &eeing that the Tukey method is the most reliable it is likely that the only difference that actually exists is between CBvercapacity9 and the combined strategy C<roduct N +arket9 This is in accordance with the conclusion from the parametric t(test in which CBvercapacity9 shows evidence of positive abnormal return while both the C<roduct9 and C+arket9 as well as the C<roduct N +arket9 indicate a negative abnormal performance. The second longest time interval of six months shows evidence that is very similar to the conclusions regarding the three months interval. Again the F&6 indicates significant differences between CBvercapacity9 and C<roduct9* C+arket9* and C<roduct N +arket9 respectively. =ith respect to the 'onferroni method no differences is revealed* despite the fact that the A(test indicates that differences exist. Again* the main attention will be focused upon the Tukey method that yields a significant difference between the 7A4 related to the strategies CBvercapacity9 and C<roduct N +arket9. Arom the parametric t(test presented in table !!.!.! it can be seen that the strategy C<roduct N +arket9 looses value within a six month interval after the event day. In the case of the strategy CBvercapacity9* an indication of a positive abnormal return is presented. )owever* this result is not significant and therefore* it is not possible to determine if the average 7A4 is different from @ero. The conclusion is that for companies driven by the rationale CBvercapacity9 an abnormal return around @ero is expected within the six month period after the event day and the companies using the strategy C<roduct N +arket9 may expect a significant loss during the same period of time. Ainally* on the one year interval the F&6 method yields the same results as for the three and the six months time periods. In relation to both 'onferroni and Tukey the conclusions differ since* neither of these two tests detects any pair wise differences* despite the fact that the A(test itself indicated dissimilarities between the strategies. Again it is important to remember that as the Tukey method is somewhat conservative compared to the A(test and therefore* it is likely that it would be wrong to conclude an existence of differences between strategies.

.;

An empirical study of the value creation in +,A - in relation to the strategic rationale In the search for differences between the 7A4s the following conclusions can be drawn. Bver the event window and the one month period following the event it is not possible to detect any differences between strategies which is contrary to the expectations of hypothesis II that the strategies are different. Bver the three month and the six months interval following the event it was possible to find evidence in favour of the fact that the effect of a merger or an acquisition differs between the different +,A strategies ( in this case between CBvercapacity9 and the combined strategy C<roduct N +arket9. Ainally* over the one year following the event a difference was expected based on the A( test* however* according to Tukey no significant difference exists. In comparing these results to the hypotheses on which the thesis is written a clear disagreement is present. According to hypothesis II difference between the strategies in relation to value creation is expected. )owever* in the case of stock prices it is only possible to find evidence of differences in two of the five time periods. Aurthermore* it is expected that the effects of mergers and acquisitions in relation to value creation would differ between the C+arket9 and the C<roduct9 strategies* but no evidence of any difference is found. This expectation was in fact the reason for separating the C<roduct N +arket9 strategy presented by 'ower 022!". 11.$. 1ummer* of the empirical results in relation to stoc& prices The analysis of stock price performance presented above is based on daily stock prices* which are applied to detect abnormal returns within five different time intervals the event window* ! month* # months* 3 months* and ! year following the event day". The analysis of stock prices focuses mainly upon the shorter time aspect. Airst* focus is upon detecting abnormal returns based on the different strategies during different time hori@ons to establish support for hypotheses I* IQ* and Q section !!.! and section !!.0" and second* an analysis of differences between strategies are presented in order to find evidence in support of hypothesis II section !!.#". In the following focus will be upon the main conclusions that can be drawn from the different performance measures* and so it should be kept in mind that in some cases the test statistics do oppose to the conclusion presented below. In the analysis of stock price performance a parametric test as well as three non( parametric tests is conducted. The parametric test is subject to stringent

assumptions that affect the reliability of the test. In relation to stock prices the normality assumption .>

An empirical study of the value creation in +,A - in relation to the strategic rationale is in large fulfilled* however* there are some problems in relation to independence between the abnormal returns* therefore* the power of the test is reduced* and should be compared to the strategies C4,69 periods strategy CBvercapacity9 stands out yielding positive abnormal performance. The conclusions drawn from this test is subject to some unreliability due to the fact that the assumption of independence might be violated. )owever* to some extent the conclusions from the parametric test give of fair idea of the evaluation of the abnormal performance. As expected* the non(parametric tests yield fewer significant test statistics* which indicates that in most cases it is not possible* based on these tests* to infer evidence in favour of value being created from +,A activity. In relation to the strategy C?eographic9 all three tests yield significant results. Aor the 4ank test and the &ign test the strategy C?eographic9 is significant for the three month period following the event. In the case of the ?enerali@ed &ign test the strategy C?eographic9 is significant over the three months and six months intervals. All four cases indicate positive abnormal performance based on stock prices for companies engaging in +,A based on the rationale C?eographic9. This conclusion in favour of value creation is opposite to the conclusion from the parametric test in which the strategy C?eographic9 yields negative performance. The non(parametric tests are the most reliableM therefore* it is likely that the performance is actually positive. )aving performed the analysis for abnormal performance* the test statistics support the expectation of differences between the strategies. This is evaluated based on an A(test and three pair wise difference methods. The test for differences is conducted on each time intervalM however* it is not possible to detect differences in all five time intervals. Bver the event window and the one month following the event the A(test does not detect any dissimilarity* and therefore* it cannot be concluded that differences exist. This observation is in contrast to hypothesis II. In the remaining three time intervals it is possible to detect differences. In all cases the differences exist between the strategies CBvercapacity9 and C<roduct N +arket9. Bver the three and six month intervals the most robust* but CBvercapacity9 also most conservative ./ measure* Tukey* indicates that and C7onvergence9 the test displays that yield negative insignificant abnormal results and the strategies performance* however* the C?eographic9 and C+arket9 that yield negative performance. =ithin the remaining non(parametric tests. The parametric test indicates overall positive abnormal stock price performance in the event window* except from the

An empirical study of the value creation in +,A - in relation to the strategic rationale outperforms C<roduct N +arket9. 'oth 'onferroni and F&6 support this observation* however* F&6 also indicates that both C+arket9 and C<roduct9 are equally outperformed. Bver the one year interval neither Tukey nor 'onferroni display any differences* though F&6 indicates the above mentioned difference between CBvercapacity9 and C<roduct N +arket9 exist. 6espite the fact that only part of the test statistics yield significant results* it is considered that in some cases it is possible to detect abnormal stock price performance* as well as it is can be concluded that the performance of each strategy differs.

+/. E15i,i%$" *'i(*n%* > $)no,1$" o5*,$#in4 5*,fo,1$n%* In this section the operating performance is evaluated. The analysis is conducted based on four time intervals the event year* ! year* 0 years and # years after the event year" and on the six performance measuresM 4BA 5'IT"* 4BA 5'IT6A"* 4B& 5'IT"* 4B& 5'IT6A"* 7A 4BA* and Tobin9s :. 1!.1. 'resentation results The six of empirical measures are applied to determine abnormal

performance

operating performance in the longer run - up to three years after the event year. To insure the robustness of the tests the operating performance is evaluated based on six different operating measures. Aor each of the six operating measures the results of the parametric t(test are presented followed by a discussion of the robustness and reliability of the results. Aurthermore* the results of the =ilcoxon &igned 4ank test are presented and finally an A(test is conducted to detect any differences between the strategies. Throughout this section the discussion of the assumptions tied to the t(test focuses exclusively on the significant test statistics. 12.1.1. Return on assets "#$T &eeing that return on assets is the prevailing operating measure for detecting abnormal operating performance it will be the starting point in this presentation and discussion of results.

32

An empirical study of the value creation in +,A - in relation to the strategic rationale !0 Table !0.!.!.! shows the results of the parametric t(test of the return on assets 4BA" based on 5'IT. All tests except from one yield significant results. The total sample of #>/ deals shows a significant negative abnormal performance* which means that in all four time intervals the acquiring company destroys value - in case of 4BA 5'IT"* the acquiring company becomes less efficient at generating profits by use of their operating assets.

The negative abnormal performance detected in the total sample in all time intervals is also apparent in five of the six strategies. Bnly the fifth strategy C7onvergence9 shows abnormal performance that differs from the overall trend based on 4BA 5'IT". In all four time intervals the test results are significantly positive* which corresponds to the fact that when the rationale for a merger or an acquisition is C7onvergence9 the parametric t(test indicates that the companies actually becomes more efficient in generating returns. In accordance with 'ower 022!" the combined strategy C<roduct N +arket9 is included in the analysis. I all five time intervals the test statistics yield significant negative abnormal performance indicating that the effect of mergers and acquisitions within this group of companies is negative when basing the analyses upon this operating measure. The fact that these test statistics indicate negative performance is well in accordance with the conclusion drawn from looking at the strategies C+arket9 and C<roduct9

!0 &as fileD C&as code - Acc. Aig.9 T C<arametric9 T CTotal9 T CT(test 5vent" - Total - 4BA 5'IT"9 3!

An empirical study of the value creation in +,A - in relation to the strategic rationale separately. The second combined strategy C4,6 N 7onvergence9 yields significant results in all five time periods except for the longest hori@on ( three years after the event year. Bver the event year this group of companies displays positive abnormal operating performance indicating a positive effect on 4BA 5'IT" after a merger or an acquisition. Bver the two following years the tests yield negative performance - meaning that in the longer run the effect upon 4BA 5'IT" is negative. As mentioned earlier* a parametric t(test is subject to some stringent assumptions. As was the case in the analysis of stock price performance the most important assumptions are normality in the distribution of abnormal returns and independence of observations deals". The analysis of the 4BA 5'IT" reveals evidence of the normality assumption being violated Appendix ?". Bnly in three cases is the normality assumption fulfilled* which is in relation to the strategy CBvercapacity9 over the event year and the year following the event as well as in relation to the strategy C4,69 over the three year period following the event. In the two test statistics based on the CBvercapacity9 strategy the distribution is approximately normal* however* there is a larger amount of observations around @ero as well as some extreme observations that make the distribution negatively skewed. In relation to the C4,69 test statistic there are also some extreme observations* but overall the distribution is approximately normal. 4egarding these three cases where the normality assumption is fulfilled robust conclusions can be drawn. The second assumption in relation to independence between the observations deals" included in the sample is assumed to hold. In the case of accounting figures the observed figures for one company is independent upon what can be observed for other companies. In the case of accounting figures the problem of potential biases relates to the reporting of the accounting figures and the choice made by the companies in relation to accounting methods is not influenced by competing companies. Therefore* the second assumption of independence is expected to hold in relation to this performance measure. &eeing that the normality assumption must be met in order to draw robust and reliable assumptions in relation to the parametric t(test the overall reliability of the parametric t( test is flawed* and it would be a mistake to depend exclusively upon a parametric test.

30

An empirical study of the value creation in +,A - in relation to the strategic rationale The =ilcoxon &igned 4ank test is conducted to obtain robust and powerful results in relation to detecting abnormal operating performance. The =ilcoxon &igned 4ank test is conducted for all four time intervals. The main conclusion from above is significant negative for C7onvergence9 showing significant positive abnormal performance across all time intervals. Table !0.!.!.0 !# shows the results from the =ilcoxon &igned 4ank test. The overall abnormal operating performance across the entire sample except

impression yields an overall similar picture as that of the parametric t(test* but with a smaller fraction of significant tests.

Bver the event year five of the six strategies* as well as the total sample* yield significant only the C7onvergence9 strategy stands out by displaying positive abnormal performance over the event year* though only at a !2L confidence level. 7oncerning the one year* two year* and three year indicate that intervals after the event year positive abnormal C7onvergence9 strategy. These results performance is equally detected for the results. As with the parametric tests a significant negative abnormal operating performance can be detected during the event year. Again

the acquiring companies with exception of those following the

C7onvergence9 strategy are becoming less efficient at generating earnings in the periods after a merger or an

!# &as fileD C&as code - Acc. Aig.9 T C1on(<arametric9 T CTotal9 T C=ilcoxon 5vent" - Total - 4BA 5'IT"9

3#

An empirical study of the value creation in +,A - in relation to the strategic rationale acquisition* which supports the hypothesis I that value is lost as a result of negative abnormal operating performance. In the year following the event year the overall sample indicates negative abnormal performance but not all of the remaining strategies yield significant results. The strategies C<roduct9* C+arket9 and C4,69 yield significant negative performance* while as mentioned C7onvergence9 show positive abnormal performance. Bn the two years and three years hori@ons the overall sample are no longer significant and so it is not possible to detect any abnormal performance neither positive nor negative. In the case of the insignificant statistics* which indicate that no effect of +,A can be detected based on 4BA 5'IT". The combined strategy C<roduct N +arket9 yields significant results in the three shortest time periods the event year* the ! year and the 0 years following the event year". All three cases show evidence of negative abnormal operating performance* which indicates that the effect of a merger or an acquisition is negative and so value is destroyed. This conclusion is in accordance with the conclusion drawn from the parametric t(test. In case of C4,6 N 7onvergence9 the =ilcoxon &igned 4ank test is significant in relation to the year following the event year. This test statistic indicates negative abnormal performance* which is also in accordance with the same hori@on in the parametric t(test. In conclusion* the analysis of operating performance based on 4BA 5'IT" shows evidence in favour of an overall negative abnormal performance. In relation to the strategy C7onvergence9* that displays positive abnormal operating performance* deviations from the main impression are detected. The parametric t(test should not be relied upon due to violations of the normality assumptionM instead focus should be upon the non(parametric test. In the case of =ilcoxon &igned 4ank test fewer test statistics are significant compared to the parametric counterpartM however* the conclusions drawn based on the significant tests are the same for both parametric and non(parametric tests. 12.1.2. Return "#$T%& on assets

This second operating measure based on 5'IT6A instead of 5'IT was intended to ensure an operating measure uninfluenced by both financing and accounting methods. 6espite some adjustments in this operating measure compared to the one using 5'IT it

38

An empirical study of the value creation in +,A - in relation to the strategic rationale is expected that the empirical results based on 4BA 5'IT6A" will be in accordance with the results presented above for 4BA 5'IT". The empirical results of the parametric t(test are presented in table !0.!.0.!. !8 In

this case all tests are significant. The overall impression from this table is an overweight of in favour of negative abnormal operating performance. This is in line with the conclusions drawn above in relation to 4BA 5'IT". 1egative performance in this case indicates that the acquiring companies are less efficient after the merger. This overall impression or trend is present over each of the time hori@ons for which the analyses are conducted.

6espite an overall trend indicating negative abnormal performance there are some exceptions in which value is in fact created. As with the first performance measure this second measure indicates that value is created when the acquiring company follows a C7onvergence9 strategy. This conclusion is apparent in all four time intervals. At the same time these differences between negative the and positive that abnormal operating performance also support hypothesis differences

exist between the performances of each strategy. Aor 4BA 5'IT6A"* C7onvergence9 is not the only strategy to reveal positive abnormal performance. In the event year the C+arket9 strategy is also significantly different from !8 &as fileD C&as code - Acc. Aig.9 T C<arametric9 T CTotal9 T CT(test 5vent" - Total - 4BA 5'IT6A"9 3.

An empirical study of the value creation in +,A - in relation to the strategic rationale @ero and positive. In relation to this result the operating performance of this group of acquiring companies is positive in the shortest of the four time hori@ons* while it is negative in the longer term. This is in accordance with hypotheses III and IQ. In cases of mergers and acquisitions performed in relation to CBvercapacity9 there is evidence of positive abnormal performance* though this is only evident in the longer time hori@ons of one year* two years and three years after the event year. In relation to the combined strategies both the C<roduct N +arket9 strategy* as well as the C4,6 N 7onvergence9 strategy yield significant results in all four time hori@ons. Aor C<roduct N +arket9 the results show evidence of negative abnormal operating performance and so value is lost or destroyed in relation to the merger or the acquisition. This result of the combined strategy is overall in line with the conclusions drawn from the two strategies - C+arket9 and C<roduct9 separately. These test statistics yield negative resultsM however* within the event window a deviation is detected* as the C+arket9 strategy shows positive abnormal performance. In the case of C4,6 N 7onvergence9 the results indicate positive abnormal operating performance over the event year as well as the three year period following the event. Aurthermore* the results indicate negative abnormal performance in the remaining two time periods ! year and 0 years after the event". In looking at the two strategies separately the results differ. The C7onvergence9 strategy yields positive results while the C4,69 group displays negative performance is negative in all four time intervals. The assumptions attached to the parametric test are the same as mentioned above in relation to 4BA 5'IT". The conclusions in relation to 4BA 5'IT6A" correspond overall to those of 4BA 5'IT". The normality assumption is violated in most cases* which indicates that the result has less power and is less robust Appendix ?". Bnly in two incidences are the normality assumption fulfilled. The two year period after the event in the case of C?eographic9 indicates that the normality assumption is approximately fulfilled* despite the fact that the distribution is slightly

negatively skewed. The second case is in relation to the event year for the CBvercapacity9 group* which indicates that the normality assumption holds. The second assumption of independence between the observation is also in this case considered fulfilled based on the same arguments presented in relation to 4BA 5'IT"* and so this assumption is not the one posing problems.

33

An empirical study of the value creation in +,A - in relation to the strategic rationale !. In table !0.!.0.0 the results of the =ilcoxon &igned 4ank test for 4BA 5'IT6A" are presented. In this case only a minor part of the test statistics is significant and so the overall tendency is that it is impossible to draw inferences of abnormal performance* which supports the hypothesis IQ assuming no effect from mergers and acquisitions. )owever* those tests that yield significant test results are in the larger part indicating positive abnormal operating performance* which is in clear contrast to the empirical results of the parametric test in which most test statistics indicate negative performance. The fact that the =ilcoxon &igned 4ank test yields opposite results of the t(test underlines the problems in relation to relying upon results from a test in which the assumptions are violated. In this case it would lead to a questionable conclusion.

Bver the event year only two strategies yield significant results - namely C?eographic9 and C4,69 - in both cases a negative abnormal performance is detected. Bn a one year hori@on following the event year again only two strategies are significant* that is CBvercapacity9 and again C4,69. A positive abnormal performance is detected in relation to the strategy CBvercapacity9* which is in line with the parametric test results presented above. C4,69 shows negative abnormal performance. Bn a two year and a three year hori@on the overall sample indicates significant positive abnormal returns* which again is in clear contrast to the conclusions drawn from the parametric C<roduct9* and tests. The acquisitions motivated by CBvercapacity9*

!. &as fileD C&as code - Acc. Aig.9 T C1on(<arametric9 T CTotal9 T C=ilcoxon 5vent" - Total - 4BA 5'IT6A"9

3;

An empirical study of the value creation in +,A - in relation to the strategic rationale C7onvergence9 in this test yield positive abnormal returns. =hile only C4,69 show evidence of significantly negative abnormal performance. Bn the three year hori@on the only significant results are those of CBvercapacity9 and C7onvergence9 which yield positive abnormal returns in accordance with prior years and equally the empirical results from the parametric t(test. In this case the mixed strategies - C<roduct N +arket9 and C4,6 N 7onvergence9 are insignificant and so no conclusions can be drawn from these tests. In relation to 4BA 5'IT6A" the assumptions attached to the parametric test are violated* therefore* the results cannot be relied upon. The conclusions drawn from the parametric test are in most cases opposite to the results of the =ilcoxon &igned 4ank test - keeping in mind that when a violation of the assumptions appears the main conclusion should be based upon the parametric test. In most cases it is not possible to detect abnormal performance* but for the main part of the significant tests* positive abnormal operating performance is detected. 12.1.3. Return on sales "#$T 4eturn on sales 4B&"* the third performance measure was included to overcome the Chistoric cost9 drawback of 4BA. 4B& is created purely by income statement items and !3 are thus not affected by potential problems of historic costs. In table !0.!.#.! the empirical results from the parametric t(test for 4B& 5'IT" are displayed.

!3 &as fileD C&as code - Acc. Aig.9 T C<arametric9 T CTotal9 T CT(test 5vent" - Total - 4B& 5'IT"9 3>

An empirical study of the value creation in +,A - in relation to the strategic rationale Again all test statistics are significant and show an overweight of negative abnormal operating performance* thus in relation to 4B& 5'IT" the acquiring companies become less efficient in generating earnings based on per unit sales. The fact that the companies get worse at generating earnings indicates a negative effect of +,A. Again a few of the parametric test statistics differ from consensus. Across time hori@ons C7onvergence9 yield positive and significant test statistics indicating positive abnormal operating performance. This corresponds to the conclusions drawn from the empirical results 4BA 5'IT" and 4BA 5'IT6A". In relation to the C?eographic9 motive the tests also yield positive and significant abnormal performance in three of the four time hori@ons. In the event year the abnormal performance is still significant* however* in this case it is negative. Ainally* the performance of companies motivated by CBvercapacity9 obtains a positive abnormal performance in the two year hori@on following the event year* while the remaining years show negative abnormal performance. The combined strategies C<roduct N +arket9 and C4,6 N 7onvergence9 both yield significant test statistics over all four time intervals. The C<roduct N +arket9 strategy shows evidence of negative abnormal operating performance* which is in separate strategies. 'oth accordance with the conclusions drawn from the two all four

strategies indicate that the abnormal operating performance is negative over all time intervals and it is likely to expect that combining the two will yield similar results. 7ombining the strategies of C7onvergence9 and C4,69 into one strategy yields test statistics* which in three of four time intervals event year* ! year and 0 year" indicate negative abnormal performance* while the three year period following the event year yields positive abnormal performance. The conclusions based on the separate strategies are in contraryM while performance in all four time periods. The power of this parametric t(test of 4B& 5'IT" is similar to what was seen with the previous two performance measures. In all tests except for one the normality assumption is violated Appendix ?"* therefore* the t(test does not have adequate power to draw reliable conclusions and must be supported by a non(parametric test. In relation to the strategy CBvercapacity9 concerning the event year the abnormal returns are approximately normally distributed though slightly negatively skewed. In relation to the C7onvergence9 indicates positive abnormal performance the C4,69 group of companies shows evidence of negative abnormal

3/

An empirical study of the value creation in +,A - in relation to the strategic rationale assumption of independence between observations it is assumed fulfilled* for the same reasons as for the previous two performance measures. The non(parametric =ilcoxon &igned 4ank test yields empirical results in accordance with the previous two performance measures. Bnly a minor part of the test statistics is significant compared to the parametric tests. Those significant over the event year and the year after the event year show negative abnormal performance* while those significant over the two and three year periods after the event year show positive abnormal performance. These results are overall in accordance with the results from the corresponding test statistics in the parametric test and are outlined in table !; !0.!.#.0.

In the event year the only significant test statistics are that of C4,69* as with the parametric test those acquirers motivated by C4,69 show evidence of negative abnormal performance. This is also the case with the period one year after the event year. Apart from C4,69* C+arket9 also yields negative abnormal performance in the one year period after the event year. Bver the two longest time intervals ( two and three year periods after the event year ( evidence of positive abnormal performance is found in the strategies of CBvercapacity9 and C7onvergence9. In comparing these results to the results of the parametric test above there are some differences. In relation to the non( parametric test C7onvergence9 is significant only in the three year period* while CBvercapacity9 is significant in both the two and the three year periods. !; &as fileD C&as code - Acc. Aig.9 T C1on(<arametric9 T CTotal9 T C=ilcoxon 5vent" - Total - 4B& 5'IT"9

;2

An empirical study of the value creation in +,A - in relation to the strategic rationale As was the case with the six basic strategies* the combined strategies are also dissimilar to the conclusions drawn from the parametric test due to the fact that the test statistics are insignificant. In relation to Cmarket and product extension9 the non( parametric test only yields a significant result over the one year period following the event year. The test accordance with indicates negative abnormal performance* which is in the conclusion from the parametric test. 7oncerning the total

sample only in the second year following the event year is the result significant and indicates positive abnormal operating performance. This conclusion is opposite to that drawn from the parametric t( test on the same hori@on* which indicates negative abnormal operating performance for the total sample. 4B& 5'IT" yields results that are similar to the results from the previous two performance measures based on return on assets. The test statistics in relation to the parametric t(test are significant and yield in most cases negative abnormal performance* however* the assumptions are violated and the non(parametric test is needed to obtain robust and powerful conclusion. The conclusions from 4B& 5'IT" in relation to the non(parametric test are similar to the results from the parametric test. +ost of the test statistics from the =ilcoxon &igned 4ank test are insignificant. )owever* the significant test statistics show the following characteristicsM the event year and the one year period after the event year display negative abnormal performance* while displaying positive abnormal performance over the two year and three year periods. 12.1.*. Return "#$T%& on sales

In order for a company to maintain the same return on sales 4B&" the company9s earnings need to increase equally compared to sales to maintain the same margin as before the merger or the acquisition. If a decrease in 4B& 5'IT6A" is detected the aspiration of a constant or increase in 4B& 5'IT6A" is not fulfilled and thereby value is destroyed. 4B& 5'IT6A" yields tests results that are different from the overall picture of the abnormal performance and these results are displayed in table !0.!.8.!. !>

!> &as fileD C&as code - Acc. Aig.9 T C<arametric9 T CTotal9 T CT(test 5vent" - Total - 4B& 5'IT6A"9 ;!

An empirical study of the value creation in +,A - in relation to the strategic rationale

In the previous three performance measures the main trend was an overweight of test statistics in favour of value destruction. In the case of 4B& 5'IT6A" a larger fraction of test statistics indicates positive abnormal performance in particular in relation to the original six strategies. Fooking at the total sample including all #>/ deals it is only over the two year period following the event year that positive abnormal performance is documented. The remaining periods for the overall sample are all significant* though they yield negative performance. As mentioned* a negative development in the 4B& 5'IT6A" is an indication that a company becomes less efficient in generating earnings per unit of sales. 'ecoming less efficient and thus generating fewer earnings is an indication of not living up to its potential and thus not gaining the intended effects from a merger or an acquisition. <ositive abnormal performance is observed across time intervals and across strategies* namely C?eographic9* CBvercapacity9* and C7onvergence9 yield results in these groups are becoming more indicating that the group of acquirers

efficient and have experienced a larger increase in earnings compared to sales. In the event year and the year following the event year C+arket9 also shows positive abnormal returns* even though in the longer intervals the performance is significantly negative. In relation to 4B& 5'IT6A" the results form the combined strategies are overall in accordance with the previous three performance measures. The test statistics for all time intervals are significant for both 7onvergence9. C<roduct N +arket9 displays negative abnormal performance in all four time periods. In contrast to the previous three performance measures the conclusions for the separate ;0 C<roduct N +arket9 and for C4,6 N

An empirical study of the value creation in +,A - in relation to the strategic rationale strategies do not yield similar results in all time periods. C+arket9 yields positive performance over the event year as well as over the year following the event year* while it displays negative performance in the remaining two periods. C<roduct9 shows evidence of negative abnormal performance in all four periods. 6espite this difference between the two basic strategies the combined strategy is still able to display significant results. The combined strategy C4,6 N 7onvergence9 displays positive performance over the event year and in the three year period following the event* while it yields negative performance over the one year and two year periods following the event year. Also in this case do the two strategies C4,69 and C7onvergence9 yield opposite conclusions in relation to performance. In the case of C4,69 the abnormal performance is negative* while it is positive for the C7onvergence9 strategy. In relation to 4B& 5'IT6A"* the power of the t(test is not adequate to reveal reliable results* seeing that the assumptions are violated in most cases Appendix ?". Bnly in four cases is it possible to conclude that the normality assumption is approximately met* these four cases is found in relation to the two strategies of C?eographic9 and CBvercapacity9. Aor both strategies the normality assumption is not violated in two periods* namely the one year and the two year periods after the event year. In relation to the strategy of C?eographic9 the distribution is approximately normal* though it is slightly positively skewed* due to a few extreme observations. In case of the CBvercapacity9 strategy* the distribution is also approximately normal* but in this case the distribution is slightly negatively skewed and is showing evidence of fat tails. Again the independence assumption in relation to the observations is assumed to hold* however* the power of the parametric test is overall not adequate for it to stand alone. The =ilcoxon &igned 4ank test in relation to the 4B& 5'IT6A" demonstrates a fraction of significant test results. These are* however* in accordance with the parametric test. The results from the =ilcoxon &igned 4ank test are presented in table !0.!.8.0. / !

!/ &as fileD C&as code - Acc. Aig.9 T C1on(<arametric9 T CTotal9 T C=ilcoxon 5vent" - Total - 4B& 5'IT6A"9

;#

An empirical study of the value creation in +,A - in relation to the strategic rationale

The only significantly negative performance indicator is presented by the C4,69 strategy over the event year. The fact that a group of 4,6 acquirers will experience negative abnormal performance in the event year might be explained by the fact that an acquisition motivated by C4,69 is an acquisition focused on future growth and as such the benefits might not reveal itself already in the event year. The observation is supported by the fact that over the three year period following the event year the test actually yields positive abnormal performance* indicating that the benefits from the acquisition might have started to be accomplished. In the following three time periods the significant test statistics are all positive. In the year after the event year the strategy CBvercapacity9 shows as the only strategy evidence of positive abnormal operating performance. The two year period after the event year the overall sample is significantly positive. 'esides the total sample being significant three of the original six strategies - C?eographic9* CBvercapacity9* and C7onvergence9 - also yield positive abnormal performance. Ainally* the three year period after the event year yields positive total abnormal performance as well as evidence show that the strategies C7onvergence9 and as mentioned earlier* C4,69 yield identical results. Bverall these positive and significant test statistics indicate that at least for some of the groups the operating performance in the long run is positive and thus in fact value is created. The combined strategies show results opposed to those from the parametric test. Bnly in one of eight tests does the =ilcoxon &igned 4ank test yield significant results. Aor the seven insignificant test statistics it is not possible to draw inferences of any abnormal ;8

An empirical study of the value creation in +,A - in relation to the strategic rationale performance. Aor C<roduct N +arket9 none of the four time intervals are significant* which is in line with the two separate strategies. In relation to the combined strategy of C4,6 N 7onvergence9 the =ilcoxon &igned 4ank test yields significant and positive abnormal operating performance over the two year period following the event year. The main influencer of this result is likely to be the deals that originally constituted the strategy C7onvergence9M this group displayed positive abnormal performance over the same period. 4B& 5'IT6A"* the fourth performance measure* displays positive abnormal

performance* which indicates that companies generate value when engaging in +,A. The assumptions related to the parametric t(test are violated* therefore* the conclusion are primarily based upon the non(parametric test. The largest part of test statistics is insignificant. All the significant tests except from one event year" show evidence of positive abnormal performance. 12.1.5. assets 'ash :lo) Return on C4,69 over the

7ash flow return on assets 7A 4BA" was included in the analysis primarily to overcome potential earnings manipulation the might be present in 4BA. 7A 4BA indicates a company9s ability to generate cash from the investments in assets. The 02 empirical results of the parametric t(test are presented in table !0.!...! this performance measure. for

02 &as fileD C&as code - Acc. Aig.9 T C<arametric9 T CTotal9 T CT(test 5vent" - Total - 7A9 ;.

An empirical study of the value creation in +,A - in relation to the strategic rationale Bverall the tests statistics are significant* however* in the two smallest groups C7onvergence9 and C4,69 not all four time intervals yield significant tests. 7ompared to the previous four performance measure a larger amount of the test statistics yield positive results if including the two combined strategies" implying that the effect of a merger or an acquisition is positive and thus creating value. The total sample shows in all four time intervals a positive abnormal performance* which is mainly influenced by the results from the group that is motivated by the C<roduct9 strategy. The cumulative abnormal performance for the strategy C<roduct9 is markedly higher than the other strategies and thus a main effect in the test statistics for the total sample will be present. In accordance with the previous four performance measures the C7onvergence9 strategy is significant and indicates a positive abnormal performance* however* only in three of the four time intervals event year* ! year and 0 years"* while the longest time hori@on is insignificant. As mentioned above positive abnormal performance is also evident in the strategy C<roduct9 in all four time intervals* showing extremely large test statistics. Ainally the two longest time hori@ons 0 years and # years" also indicate positive performance in relation to the group motivated by the CBvercapacity9 strategy* while in the two shortest time intervals event year and ! year". The results from the strategy CBvercapacity9 yields negative abnormal performance. 6espite only two of the four time hori@ons being significant the one year hori@on yield negative abnormal performance while in the three year hori@on evidence of positive abnormal performance is revealed. The remaining strategies C?eographic9 and C+arket9 reveal negative abnormal performance in all of the four time intervals. The combined strategies both yield significant results and in all tests except from one the results are positive. In the case of C<roduct N +arket9 the tests show evidence of positive abnormal performance. This means that the company9s ability to generate cash from their investments in assets increase following the merger or the acquisition. In relation to C4,6 N 7onvergence9 the test statistics also yield positive results except for the one year period following the event year where the test displays negative performance. In the case of negative performance the companies within this group become worse at generating cash from the asset investment in the year following the merger or the acquisition. ;3

An empirical study of the value creation in +,A - in relation to the strategic rationale The robustness of the results from the t(test based on 7A 4BA needs to be evaluated. In all test statistics the normality assumption is violated Appendix ?". The distribution is far from bell shaped and do not nearly resemble a normal distribution. This violation results in reduced power of the parametric test* and it is not recommended to base the conclusions solely upon this test. In the case of cash flow return on assets the independence assumption is assumed to be reasonable. In the =ilcoxon &igned 4ank test based on 7A 4BA only about a quartile of the test statistics are actually significant* which is less than in the previous non(parametric 0! tests. These results are presented in table !0.!...0 where the main conclusion drawn is the fact that most of the significant tests indicate the opposite of the parametric test above. =hat previously seemed as positive abnormal performance now* by use of the non( parametric test* yields negative abnormal performance and vice versa. 6ue to violations of the assumptions conclusion should be based on the =ilcoxon &igned 4ank.

The total sample yields a negative abnormal performance in the event year and the year following the event year. The only significant test statistics in the event year is the total sample. In the one year hori@on the negative performance as indicated by the total sample is supported by the results from CBvercapacity9* C<roduct9 and C+arket9. In relation to these also the combined C<roduct N +arket9 yields significant negative abnormal performance. In the two longest hori@ons 0 year and # 0! &as fileD C&as code - Acc. Aig.9 T C1on(<arametric9 T CTotal9 T C=ilcoxon 5vent" - Total - 7A9 three of the six strategies -

;;

An empirical study of the value creation in +,A - in relation to the strategic rationale year" only those companies in the group motivated by C?eographic9 show evidence of any long run operating effect from mergers and acquisitions. 'oth the test statistics for the two year and the three year intervals show evidence of positive abnormal performance. Bnly the indication of negative abnormal performance in relation to C<roduct N +arket9 over the one year period following the event year is in accordance with the parametric t(test. The fifth performance measure* 7A 4BA* displays an overall negative performance* which means that the cash generated from assets investments is decreasing. The parametric t(test shows an overweight of significant test statistics* however* the normality assumption is violated and the power and reliability of the test is not adequate. Instead the non(parametric =ilcoxon &igned 4ank test serves as basis for the conclusions. This test shows only a few significant test statistics* which overall yield negative abnormal operating performance. The conclusion of negative abnormal performance in favour of value destruction is opposed to the conclusion from the parametric t(test. 12.1.6. To!in+s , The final performance measure Tobin9s : is an indication of a company9s growth opportunities and the null hypothesis expects a Tobin9s : equal to !. A positive Tobin9s : test statistic indicates that the Tobin9s : is larger than !* which is transferred to positive growth opportunities in the future and a positive abnormal performance* while a negative Tobin9s : test statistic prescribes a Tobin9s : smaller than ! which means negative growth opportunities in the future and thus negative abnormal performance. The results from the parametric t(test of Tobin9s : are presented in table 00 !0.!.3.!. As seen in the previous five performance measures the test statistics are primarily significant which is also the case for Tobin9s :.

00 &as fileD C&as code - Acc. Aig.9 T C<arametric9 T CTotal9 T CT(test 5vent" - Total - T:9 ;>

An empirical study of the value creation in +,A - in relation to the strategic rationale

The overall impression is of negative abnormal operating performance only four test statistics stand out from the overall conclusion. The total sample is in all time periods significant. The group motivated by a C7onvergence9 strategy stands out* as has been the case in the previous performance measures. 5xcept from the event year the other three time periods ! year* 0 year and # year" yield significant positive abnormal performance. This means that in the group in which the acquiring company is motivated by the C7onvergence9 strategy the test results indicate that these companies have significant growth opportunities in the future. This is well in line with what is expected* since the C7onvergence9 strategy corresponds to a strategy in which a company performs a strategic move to a related industry or branch in which pronounced growth opportunities are expected. Bver the three year period following the event year* the strategy CBvercapacity9 shows positive abnormal performance* indicating in the same way that the value of future growth options is increasing in response to the merger or the acquisition. The combined strategy of C<roduct N +arket9 yields results in accordance with evidence from the two separate strategies. All four time intervals indicate negative abnormal performance* and thus worsened growth opportunities following the merger or the acquisition. C4,6 N 7onvergence9 shows evidence of negative abnormal performance* which is in accordance with the results based on the C4,69 strategy. As has been the case with the previous performance measures the C7onvergence9 strategy

stands out seeing that it displays positive abnormal performance in all time intervals except for over the event year in which the performance is negative. ;/

An empirical study of the value creation in +,A - in relation to the strategic rationale In relation to the power and robustness of the test* the main impression is the same as previously seen. The assumption of normality is violated in most of the t(test Appendix ?". Bnly in the case of the three years following the event year does the CBvercapacity9 strategy yield a distribution that is approximately normal. The bell shape is evident even though a large fraction of the abnormal returns is situated around @ero. An abnormal return of @ero is an indication of a Tobin9s : equal to !. As mentioned* a Tobin9s : of ! is an indication that the growth opportunities are unaffected by the merger or the acquisition* which corresponds to a @ero value effect. In relation to the independence assumption* which have been assumed fulfilled in relation to the previous five performance measures* there might be some problems in relation to Tobin9s :. As mentioned in the analysis* stock prices are partly dependant on each other and on general trends in the market making it doubtful that the stocks are independent. Tobin9s : is calculated by including the market capitalisation* which is a measure based on the stock price* and therefore* it is likely that this performance measure is influenced by other companies and general trends. This leads to the conclusion that it is problematic to assume the different observations +,A deals" are independent. Qiolation of both the normality assumption and the independence assumptions poses difficulties in relation to the reliability of the test. At best a non(parametric test must be included to verify the results. In case of differences between the non(parametric and the parametric test* the most powerful results are those based on the non(parametric test. The non(parametric =ilcoxon test in relation to Tobin9s : shows that only a minor part of the test statistics is significant* however* those that are significant present similar 0# conclusions as those revealed in the parametric tests. Table !0.!.3.0 present these results.

0# &as fileD C&as code - Acc. Aig.9 T C1on(<arametric9 T CTotal9 T C=ilcoxon 5vent" - Total - T:9 >2

An empirical study of the value creation in +,A - in relation to the strategic rationale

In the event year none of the performed tests yield significant results and thus nothing can be said for certain in relation to whether or not Tobin9s : is different from !. In the one year hori@on the total sample shows significant negative performance which indicates a Tobin9s : between 2 and !. Also the strategies C<roduct9* C+arket9* and C4,69 show negative performance in the year after the event year. The total sample is also significant in the two year and three year periods after the event year and the results yield negative abnormal performance. The only exception from the overall negative performance from this non(parametric test is the two year test result for the C7onvergence9 strategy. Bn this one occasion the test result indicate a Tobin9s : larger than ! and is thus in accordance with the same test statistic in the parametric test* and yields positive abnormal operating performance. Bn the two year hori@on the C4,69 strategy yields negative abnormal performance. The same result is detected on the three year hori@on for both C4,69 and C<roduct9. The combined C<roduct N +arket9 yields negative performance in the three periods following the event year* indicating that the growth opportunities of the companies within this group are reduced. The 1on(<arametric =ilcoxon &igned 4ank test yields fewer significant results than the corresponding parametric testM however* it is worth noticing that in relation to the significant tests the conclusions drawn from the non(parametric test are the same as those drawn from the parametric test. All* except for one of the significant test statistics* indicate negative abnormal operating performance. This corresponds to a Tobin9s :

>!

An empirical study of the value creation in +,A - in relation to the strategic rationale between 2 and ! indicating reduced growth opportunities in relation to companies engaging in +,A. )owever* the C7onvergence9 strategy stands out in revealing increased growth opportunities. Tobin9s :* the final performance measure* displays evidence in favour of negative abnormal performance in relation to the parametric as well as the non(parametric test. )owever* the parametric test is influenced by violated assumptions in relation to normality as well as independence. Therefore* the most powerful and reliable results are those drawn from the non(parametric test. In the =ilcoxon &igned 4ank test only a minor fraction of the test statistics is significant* while all these except for one display a negative abnormal performance* which is translated into reduced growth opportunities in the future* and therefore* value is actually destroyed when engaging in +,A. 1!.!. %5amination of differences between strategies based on operating performance The analysis of the six performance measures has indicated both negative and positive abnormal performance and this lack of consensus in either direction might imply that differences exist between the strategies. Therefore* an A(test for differences between the means is conducted in order to detect differences. The A(test is conducted in accordance with the specifications in section ; and the A( test is submitted to stringent assumptions. The main impression from this original A( test is that the normality assumption is violated which result in a lack of robustness and power of distribution the A(test Appendix I". To remedy the nonnormality in the

a transformation of the 7A4s is performed. In this case the

transformation consists of raising each 7A4 to the power of 2.. and thereby performing a new A(test based on the transformed data. The results of the A(test 08 based on the transformed data are presented in table !0.0.!. 'ased on the results from the A(test it appears that evidence of differences between strategies is detected in seven incidents. 4BA 5'IT" yields significant results over the two year and three year periods following the event year* while 4BA 5'IT6A" yields a significant result in the two year period after the event year. In relation to the sixth performance measure* Tobin9s :* the A(test yields significant results over all four time

08 &as fileD C&as code - Acc. Aig.9 T CA1BQA9 T CA(test - 4BA 5'IT Trans ( 5vent"9 >0

An empirical study of the value creation in +,A - in relation to the strategic rationale intervals. As mentioned previously* the A(test established the basis for the existence of a difference between the 7A4s provided that the normality assumption and the assumption of homogeneity are fulfilled. The assumptions are verified in the following and afterwards the differences will be specified. In the following focus will be upon the significant test statistics from the A(test.

'efore focusing upon the pair wise difference tests the assumptions of the A(test based on the transformed data is verified. In relation to the 4BA 5'IT" the normality assumptions is valid on both two year and three year hori@ons. The test for variance homogeneity by means of Fevenes test confirms homogeneity by not rejecting the null hypothesis of variance homogeneity. The 4BA 5'IT6A" indicates that both assumptions are valid in the two year hori@ons. In relation to the 4BA 5'IT6A" the three year period after the event year yield a conclusion which is the opposite of the conclusion found by use of the original data* which means that the test yields an insignificant result after having transformed the data. &eeing that the assumptions are fulfilled the conclusions drawn from the A(test are reliable* however* in the case of the 4BA 5'IT6A" in which the conclusions are opposite depending on whether the data is transformed or not. Transforming the data overcomes problems of nonnormality and therefore* the conclusions from the transformed A(test are preferred. 6etecting significant differences between strategies is done by means of F&6* 'onferroni and Tukey. )owever* the F&6 method is the only one to yield significant differences. In relation to 4BA 5'IT" on a two year period following the event year* >#

An empirical study of the value creation in +,A - in relation to the strategic rationale the test indicates that the strategies C7onvergence9 and CBvercapacity9 outperforms all three of the strategies C+arket9* C4,69 and C<roduct N +arket9. In all cases C7onvergence9 and CBvercapacity9 show evidence of positive abnormal performance* compared C4,69 and C<roduct9. In this pair wise difference test C<roduct9 outperforms C4,69 even though both strategies yield negative abnormal performance. In relation to 4BA 5'IT" over the three year period the same trend as indicated from the two year period is also present in this case. The strategies CBvercapacity9 and C7onvergence9 significantly outperform the strategies of C<roduct9* C+arket9* C4,69 and C<roduct N +arket9. Again* both CBvercapacity9 and C7onvergence9 yield positive abnormal performance* while the other four show evidence of negative performance. In addition to this* C7onvergence9 equally outperforms the C<roduct9 strategy. 4BA 5'IT6A" over the two year period indicates that C4,69 is outperformed by the strategies C7onvergence9* CBvercapacity9* C<roduct9 and C<roduct N +arket9. Aurthermore* C+arket9 is outperformed by CBvercapacity9. As the F&6 test is the only one of the three pair wise difference tests that is able to detect any differences between strategies* it should be kept in mind that the F&6 test is not without drawbacks. The main drawback of the F&6 test is the fact that the possibility of type I errors is severe* which means that the risk of rejecting the null hypothesis when it is actually true is present. This might in fact indicate that too often does the F&6 test indicate a significant difference when none actually exist. exists. In the case of Tobin9s : the A(test based on transformed data indicated that differences exist between strategies in all four time intervals. )owever* to be able to rely upon the results the assumptions must be verified. In the case of this performance measure the transformation does not completely overcome problems in relation to the assumptions. Bver the event window the normality assumption is met. In this case it is not possible to draw a conclusion in favour of variance homogeneity* which means that the variances are not the same and so the results are not robust. Bn the one year and the two year periods after the event the distributions are approximately fulfilled indicating that it is >8 The preferred pair wise difference test is Tukey* which is a conservative measure that might result in not observing a significant difference when one actually to the opposing three strategies that yield negative abnormal operating performance. In addition the F&6 test also indicates a difference between

An empirical study of the value creation in +,A - in relation to the strategic rationale expected that a difference exists in these two cases. Ainally* over the three year period the assumptions are met and a difference is observed. In detecting between which strategies differences exist* the conclusion in relation to Tobin9s : is the same on both the one year and the two year time periods after the event. It is evident in both periods that C4,69 is outperformed by all other strategies indicating that the growth opportunities are smaller following an 4,6 investment* which is strictly opposite of what was expected. This conclusion is based upon two of the pair wise difference tests 'onferroni and Tukey". The F&6 method indicates more significant results than the other two methods. This is primarily illustrated in relation to C7onvergence9 which outperforms the strategies C+arket9* C<roduct9* C<roduct N +arket9 and C4,6 N 7onvergence9. Tobin9s : over the three year period following the event year do not yield the same amount of significant differences as the previous two periods. )owever* the difference according to 'onferroni and Tukey is still in relation to C4,69. This means that C4,69 is outperformed by the strategies CBvercapacity9 and C7onvergence9. As mentioned above the preferred pair wise difference measure is Tukey* and the significant results based on this method is likely to be valid. Aurthermore* the results from Tukey are supported by those from 'onferroni* which yield the same results. The test for differences was overall based on transformed data seeing that the assumptions were violated in relation to the original data. The overall conclusion in relation to the test for differences not all of the six performance measures yielded significant differences between strategies. )owever* for 4BA 5'IT"* 4BA 5'IT6A"* and Tobin9s : the empirical work supported the expectation of difference between strategies. Aor 4BA 5'IT" on the two year and three year periods evidence show that the strategies C7onvergence9 and CBvercapacity9 outperform the remaining strategies except for C?eographic9" and yield positive performance. 7ontrary to this 4BA 5'IT6A" indicates that the strategy C4,69 is outperformed by all other

strategies and displays negative performance. In relation to Tobin9s : all 8 time intervals" C4,69 is outperformed while C7onvergence9 and CBvercapacity9 outperform the other strategies. 'ased on the test for differences it is likely that differences exist* however* no difference between C+arket9 and C<roduct9 is evident* and so the rationale for separating the C<roduct N +arket9 strategy presented by 'ower 022!" is not present. >.

An empirical study of the value creation in +,A - in relation to the strategic rationale 1!.#. 1ummar* of the empirical results in relation to operating performance The analysis of operating performance presented above is based on six

performance measuresD 4BA 5'IT"* 4BA 5'IT6A"* 4B& 5'IT"* 4B& 5'IT6A"* 7A 4BA* and Tobin9s :* which are applied to detect abnormal performance within four different time intervals the event year* ! year* 0 years* and # years after the event year". The first part of the analysis section !0.!" focuses upon detecting abnormal performance based on strategies over different hori@ons to establish support for hypotheses I* IQ* and Q while the second part of the analysis section !0.0" analyses for differences between strategies in order to find evidence in support of hypothesis II. In the following focus will be upon the main conclusion that can be drawn from the different performance measures* and so it should be kept in mind that in some cases the test statistics do oppose to the conclusion presented below. In detecting abnormal operating performance the analysis is conducted by means of a parametric t(test as well as a non(parametric =ilcoxon &igned 4ank test. Bverall* the largest amount of reliability and power to the tests is related to the =ilcoxon test* seeing that the assumptions related to the t(test are violated for all six performance measures as well for all four time intervals. The empirical results from =ilcoxon indicate that a fraction of the test statistics are insignificant* and therefore* it is not possible in these cases to detect abnormal performance different from @ero* which corresponds to the fact that +,A activity have no effect upon the acquiring firm. In comparing to the results from the six operating measures the main impression is that no actual consensus exists between the performance measures. )owever* in focusing on one performance measure at a time some trends can be detected in relation to whether or not value is created. The performance measures 4BA 5'IT"* 7A 4BA* and Tobin9s : show evidence of negative abnormal performance* which translates into support of hypothesis I and IQ. 'ased on these three performance measures it appears that engaging in +,A destroys value for the acquiring company in the longer term. )owever* 4B& 5'IT" displays negative performance in the two

shortest time intervals* while displaying positive abnormal performance in the two longest time intervals. Ainally* 4BA 5'IT6A" and 4B& 5'IT6A" indicate positive abnormal performance* which means that in relation to these two performance

measures the effect from +,A in relation to operating performance is positive value is created.

>3

An empirical study of the value creation in +,A - in relation to the strategic rationale The overall trends presented above indicating both positive and negative abnormal performance supports the hypothesis that differences between strategies might actually exist. To verify if differences exist* an A(test is conducted as well as the pair wise difference methods. As with the t(test the A(test is subject to some violated and in assumptions that must be fulfilled. The normality assumption is returns to the power of 2... In relation to the transformed data* the assumptions are met and the results can be trusted. Bnly in relation to three of the six performance measures 4BA 5'IT"* 4BA 5'IT6A" and Tobin9s : does the A(test indicate that differences exist between strategies. =ith respect to 4BA 5'IT" - in the two year and three year periods after the event year ( it is evident that the strategies C7onvergence9 and CBvercapacity9 outperform 4eversely the strategy C4,69 is outperformed by the other strategies in the case of 4BA 5'IT6A" over the two year period following the event. Ainally* in relation to Tobin9s : evidence shows that C4,69 is outperformed by the remaining strategies* while the C7onvergence9 strategy outperforms the other strategies except for CBvercapacity9 and C?eographic9 strategies. 'ased on the examination of differences it appears that the performance of the different strategies differ to some extent. The strategies CBvercapacity9 and C7onvergence9 seem to perform better than the remaining strategies indicating that value is in fact created in these two cases. Aurthermore* the results also show that the strategy 94,69 is outperformed by the remaining strategies indicating that those companies engaging in +,A in relation to 4,6 performs worse than other companies with different motives. Ainally* it should also be mentioned that in relation to the operating performance it has not been possible to detect any differences between the strategies C+arket9 and C<roduct9 which supports the decision by 'ower 022!" to combine the two into one strategy* namely C<roduct N +arket9. 6espite the fact that the tests only yield significant results in part of the test statistics it is still considered that in relation to operating performance it is possible to detect an abnormal operating performance different from @ero. Aurthermore* it is also likely to detect some differences in relation to value creation between the different strategies. the remaining strategies except for C?eographic9.

order to remedy the nonnormality the data is transformed by raising the abnormal

>;

An empirical study of the value creation in +,A - in relation to the strategic rationale +0. E'$"!$#ion of #-* ($#$, #-* ,* *$,%- $55,o$%-, $n( #-* *15i,i%$" ,* !"# As seen in section !! and section !0 some of the empirical results are opposed to what was expected and presented in the hypotheses* which were based on the results of previous empirical work. 5ven though most of the previous empirical work has been conducted upon $& based companies* it was expected that the $% and the &candinavian data would yield similar results. This was not the case* and therefore* it would be obvious to make an attempt to detect the reasons for the dissimilarities. )owever* a thorough analysis of these reasons is outside the scope of this thesis* despite the fact that it would provide increased power to the conclusions. The following will instead be an attempt to detect and present factors that are likely to have influenced the results and might be part of the explanation for the presence of dissimilarities. This discussion is threefold and concerns the selected data* the research method and the empirical results. In relation to the data that constitute the sample some potential problems could be in relation to the sample si@es of each of the strategies* the selection bias and the time period. The deals were divided into the different strategies based on documentation from articles* annual reports* press releases etc. )owever* a division performed this way is always subject to some potential bias* despite the fact that great attention has been exercised in this part of the thesis. Aurthermore* the division between strategies have not been equal and perhaps this difference in composition between strategies has affected the final analysis. In a mayor part of the previous empirical work* the period of analysis have been much longer than in the case of this study* which might also influence the results when comparing them to previous work. The potential problems relating to the research method are considered to be the following two aspectsD and the creation the of the benchmark in relation to

operating performance 'enchmarking is

event(induced

variance

increase.

made exclusively upon past performance 4BA 5'IT"" without

regard to the industry &I7 codes". Aurthermore* as mentioned in section >.0 the benchmark group created based on 4BA 5'IT" is the same that is used over time and across performance measures. This results in the fact that the benchmark group in relation to G !2L of the 4BA 5'IT" is likely not to be the same if composing a group based on G !2 L of 4BA 5'IT6A"* 4B& 5'IT"* 4B& 5'IT6A"* 7A 4BA* or TobinUs : respectively. Therefore the conclusions five performance measures might not be >> drawn based on the last

An empirical study of the value creation in +,A - in relation to the strategic rationale completely reliable* and a potential bias to the conclusions is likely. The problem in relation to not adjusting for event(induced variance increases relates to rejecting the null hypothesis too often* which might also influence the results. The above mentioned potential problems might have influenced the results in one way or another or not at all. In comparing the empirical results from this thesis to previous work some dissimilarities exist in particular in relation to the analysis of 7A 4BA. These results are completely opposite of what have been detected previously. It is considered that this dissimilarity is at least partly explained by the way in which the benchmark is created. Aurthermore* consideration in relation to the sample si@e must be made* it might be possible that a larger sample would have made the results more reliableM however* it is important to remember that more reliable results might not lead to being able to detect any abnormal performance. A large fraction of previous literature supports the fact that the acquiring company performs just about the same as the market* and so no abnormal performance can be detected. 6espite potential pitfalls which might* if addressed* have improved the power and reliability of the empirical results it is still considered that the method and the empirical work in relation to this thesis is of high standard* therefore* the conclusions drawn is credible and can be used in further work. In relation to the drawback or pitfalls mentioned here these serve as potential improvements in further research.

>/

An empirical study of the value creation in +,A - in relation to the strategic rationale

+2. Con%"! ion The overall objective of this thesis was to perform an analysis of the performance regarding the acquiring companies in relation to a merger or an acquisition based on data from the $% and &candinavia. The analysis of post performance was conducted by means of both daily stock prices and six operating measures. In order to answer the overall research question of whether or not an abnormal performance can be detected in relation to a merger or an acquisition the analysis was offset by the strategic rationale behind a particular deal. The division into strategies was motivated by the assumption that the success of a merger was likely to be influenced by the strategic rationale behind the decision to engage in a merger or an acquisition. Therefore* it was also examined whether or not it was possible to detect difference between the strategies. The overall research question was evaluated based on six hypotheses in relation to the expectations towards the empirical results. In the following each hypothesis is addressed separately. 6ue to the violations of the assumptions in relation to the parametric t(test the conclusions is primarily based on the results from the non(parametric test. In relation to h1pothesis $ concerning value destruction the analysis showed some dissimilarities* compared to the hypothesis. In most cases it was not possible to detect an abnormal performance different from @ero. )owever* despite this overall trend* the test in which a difference from @ero abnormal performance was displayed* the main impression indicated that acquisition. The results in relation to the analysis of stock price performance based on the parametric t(test yielded the impression that value was in fact destroyed. )owever* in comparing this conclusion from @ero was the strategy C?eographic9 which indicated a positive effect in the stock prices over the three months period. The remaining test statistics were insignificant and no conclusion regarding the presence of abnormal returns could be found. with the non(parametric test results dissimilarities existed. The only test displaying an abnormal performance different was of negative abnormal performance* which thus the acquiring company lost value after engaging in a merger or an

/2

An empirical study of the value creation in +,A - in relation to the strategic rationale The analysis of abnormal operating performance showed similar results as the analysis of the stock prices. In most cases the parametric test yielded significant results in four of six the performance measures were negative"* however* the non(parametric test yielded fewer significant tests and mostly favoured the idea of @ero abnormal performance. The tests* which were significant* yielded different results depending on the performance measure. 4BA expectations of hypothesis I. 01pothesis $$ presented the expectation of differences between the strategies in relation to their performance. 6espite the fact that it was not possible to uniquely determine that differences existed the conclusion in favour of dissimilarities to determine evidence from the analysis of both stock in the performance. In relation to the prices and operating measures indicated that in some cases it is possible to draw a analysis of the stock price performance evidence showed that it was not possible differences in all five time intervals* but only in the three longest hori@ons # months* 3 months and ! year" and it appeared that this difference was detected between the strategies CBvercapacity9 and C<roduct N +arket9. The difference between these two strategies supported the expectations in hypothesis II* however* differences were not detected between several strategies* which might in fact have indicated that despite the motive for the merger or the acquisition the effect that could be detected in the stock market was overall similar despite the different strategies. In relation of the to the operating performance The some three differences performance were detected that 5'IT"* the most reliable measure* indicated negative abnormal performance* and therefore* supported the

between strategies even though this observation was supported by only three six performance measures. measures revealed evidence of difference were 4BA 5'IT"* 4BA 5'IT6A"* and Tobin9s :. The impression based on the limited evidence indicated that the strategies CBvercapacity9 and C7onvergence9 performed better than the remaining strategies while C4,69 was outperformed by the other strategies. Bverall* some strategy support of hypothesis II was detected indicating that the

CBvercapacity9 performed better when compared to other strategies and C4,69 performed worse at least in the longer term in excess of three months. This indicated that differences between the strategies could in fact be present though it was not possible to establish consensus between the performed analyses. /!

An empirical study of the value creation in +,A - in relation to the strategic rationale 01pothesis $$$ expecting a positive effect around the event day was supported by the parametric t(test. 'oth in relation to the combined sample as well as most of the separate strategies indicated a positive effect on the G . day period around the event day. The non(parametric tests yielded little evidence in relation to whether or not an actual effect can be detected from the announcement of a merger or an acquisition. The ?enerali@ed &ign test did in relation to the strategy C?eographic9 support the indication of a positive effect over the event window* while at the same time it indicated a negative effect in relation to the strategy C<roduct N +arket9. 6ue to possible violations of the assumptions attached to the parametric test it was questionable to rely only upon these results* however* they still gave an impression of the fact that value was created or detected in the stock prices following the announcement of a deal. 01pothesis $7 took the time hori@on a step further and expected losses in relation to the remaining time intervals evaluated on stock prices. The parametric t(test yielded significant results in most cases* however* due to violations of the attached assumptions the final evaluation was based upon the non(parametric tests. They all three showed similar results indicating that it were not possible to detect an abnormal performance different from @ero. Therefore* it could at best be expected that the acquiring company followed the market and thus it was unable to create an abnormal return. The evidence from the non(parametric tests thus supported this hypothesis concerning no reaction in the stock prices within the intervals of one month* three months* six months and one year after the event can be detected. 01pothesis 7 related to the operating performance measures expected a

difference between those measures based on earnings and the one based on cash flow. The main trend concerning the earning based performance measures was a negative abnormal performance and therefore in favour of hypothesis Q indicating that a merger or an acquisition destroyed value at the acquiring company. The operating performance measure* increase in the 4B& 5'IT6A"* conversely indicated an operating performance. The opposite results found by means

4B& 5'IT" and 4B& 5'IT6A" indicated that the assets the acquiring company assumed after the merger or the acquisition had a significant impact on the company earnings. In relation to the 7A 4BA the overall tendency was a loss of value to the acquiring company. This was in

/0

An empirical study of the value creation in +,A - in relation to the strategic rationale contrary to the expectation in hypothesis Q but in favour of hypothesis I regarding value destruction. 01pothesis 7$ concerning the expectation of the parametric and the non(parametric test to yield similar results was not meet because as already mentioned above* the parametric t(test was accompanied by some assumptions that needed be fulfilled in order for the test to yield reliable results. <roblems in relation to these assumptions being violated was present both with respect to the stock prices and the operating performance measures* though* they were considered more severe in relation to the operating performance measures. &eeing that the assumptions were violated emphasis that the conclusions should be placed upon the non(parametric tests and results drawn from the parametric test in should be treated with caution. They might serve as an indication of the correct results* however* it was not for certain that the conclusions from a parametric test corresponded with those from a non(parametric test - in these cases emphasis should be on the non(parametric test. To sum up* the main indications and conclusions drawn from this empirical work was that in most cases it was not possible to detect an abnormal performance in relation to a merger or an acquisition and in the cases where an abnormal return was detected the acquiring company lost value. In relation to the CTotal9 sample a positive

abnormal return around the event period* by use of daily stock prices* was detected whereas the remaining time intervals revealed negative abnormal performance. 'y use of operating performance measures* the main tendency concerning the CTotal9 sample was negative abnormal performance in the short(run and positive abnormal performance in the longer run. =hen differences between the conclusions drawn from the analyses conducted by means of daily stock prices and those based on

operating performance measures the conclusions from the analyses based on daily stock data was considered the most reliable* due to possible presence of

manipulation within the operating figures. =hen examining the different strategies separately the conclusion was in favour of value destruction performance differences unanimity different between was found. from the @ero. =ithin the or no abnormal to detect

analyses conducted within

abnormal

performances of the

each strategy no CBvercapacity9

)owever*

indications

strategy

outperforming the other strategies and the strategy C4,69 being outperformed by the remaining strategies were present. Bverall* the findings are in accordance with

previous empirical work and therefore the conclusion can be seen as reliable. /#

An empirical study of the value creation in +,A - in relation to the strategic rationale +3. A fin$" 5*, 5*%#i'* on '$"!* %,*$#ion in M&A The overall conclusion from the empirical work in this thesis in relation to the creation of value based on mergers or acquisition is in the best case an abnormal performance of @ero or at worst a negative abnormal performance. It appears that this conclusion has been presented in previous work as wellM however* it does not seem to be taken into account when companies actually engage in a merger or an acquisition. 6espite this general trend from the empirical work it seems that the overall +,A activity actually increases over time regardless of evidence in favour of @ero or negative abnormal performance. Therefore* it is likely that the overall goal of value creation is in fact not the only aspect in explaining the +,A activity. In relation to the strategy UBvercapacityU the main motive for engaging in mergers or acquisitions is primarily in order to follow suit in the industry consolidation. Therefore* the main focus in this case may not be actual value creation* but more a focus in relation to survival within the industry. This motivation guided or pushed forward by competitive needs in order to secure survival might be considered value in itself* even thoughM it cannot be measured in the stock price or the accounting figures. This motivation for +,A activity drawn by the competitive environment presents a somewhat different criterion for success. A criterion in which a successful merger or acquisition is one in which value needs not be created as long as the company do not loose compared to the market* and so it is in this case satisfactory to follow the market and not necessarily to beat the market. In taking this perspective on the effect and success of a merger or an acquisition a @ero abnormal performance compared to the market is satisfactory as long as the company after the merger or the acquisition do not perform worse than the market. In the case of the strategies U7onvergenceU and U4,6U the motive for engaging in +,A activity might also be more than the value creation itself. U7onvergenceU is a strategic move into a new* but related industry in which the potential for growth in the future is expected. Therefore* in this case a successful merger or acquisition is in the case when the acquiring company is able to gain a foothold and potentially get leading position in this new industry. Also in relation to the strategy U4,6U the motivation is more than simply value creation. In this case the objective is to gain access to better 4,6 capabilities than those present in the company before the merger or the acquisition and thereby increase the product development process and strengthen the market position.

/8

An empirical study of the value creation in +,A - in relation to the strategic rationale 6espite the fact that the companies are likely to be motivated by more than value creation itself the empirical studies in relation to the performance following an +,A transaction are still relevant and contribute with a theoretical perspective of this debate. )owever* it seems likely that in explaining the effect of a merger or an acquisition it is relevant to include the strategic rationale for the deal. This strategic rationale is likely to be important in setting up the criteria for success* and furthermore* these criteria are likely to diverge depending on the strategic rationale. In the future* it would be interesting if research focused upon examining methods to measure the non(economic effect of the strategic rationale* which must be what motivate companies to engage in the +,A activity* since no value creation can be detected.

/.

An empirical study of the value creation in +,A - in relation to the strategic rationale

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An empirical study of the value creation in +,A - in relation to the strategic rationale 7orrado* 7. P. and Kivney* T. F. !//0* CThe &pecification and <ower of the &ign Test in 5vent &tudy )ypothesis Test $sing 6aily &tock 4eturns9* The ;ournal o( :inancial and ,uantitati4e &nal1sis* vol. 0;* 1o. #* pp. 83.(8;>. 7owan* A. 4. !//0* C1onparametric 5vent &tudy Tests9* Re4ie) o( ,uantitati4e :inance and &ccounting* vol. 0* pp. #8#(#.>. 6aniel. %. and Titman* &. 022!* C+arket reaction to tangible and intangible information9* =orking paper* 1orthwestern $niversity. 6odd* <. and 4uback* 4. !/;;* CTender offers and stockholder returns - An empirical analysis9* ;ournal o( :inancial "conomics* vol. .* 1o. #* pp. #.!(#;!. 5berthart* A. 7.* +axwell* =. A. and &iddique* A. 4. 0228* CAn 5xamination of Fong( Term Abnormal &tock 4eturns and Bperating <erformance Aollowing 4,6 Increases9 The ;ournal o( :inance* vol. .8* 1o. 0* pp. 30#(3.2. 5lton* 5. P.* ?ruberM +. P.* 'rown* &. P. and ?oet@mann* =. 1. 022#* =<odern -rot(olio Theor1 and $n4estment &nal1sis+* 3 th edition* Pohn =iley , &ons* Inc.* )oboken

Aama* 5. A. !/3/* CThe Adjustments of &tock <rices to 1ew Information9 $nternational "conomic Re4ie)* vol. !2* 1o. !* pp. !(0!. Aama* 5. A. !/;2* C5fficient 7apital +arketsD A 4eview of Theory and 5mpirical =ork9* The ;ournal o( :inance* vol. 0.* 1o. 0* pp. #>#(8!;. Aama* 5. A. !//!* C5fficient 7apital +arketsD II9* The ;ournal o( :inance* vol. 83* 1o. .* pp. !.;.(!3!;. Aranks* P. and )arris* 4. !/>/* C&hareholder wealth effects of corporate takeovers ( The $.%. 5xperience !/..(!/>.9* ;ournal o( :inancial "conomics* vol. 0#* 1o. 0* pp. 00.(08.. ?hosh* A. 022!* C6oes operating performance really improve following corporate acquisitionsV9* ;ournal o( 'orporate :inance* vol. ; 1o. 0* pp. !.!(!;>. ?oergen* +. and 4enneboog* F. 0228*C&hareholder =ealth 5ffects of 5uropean 6omestic and 7ross(border Takeover 'ids9* "uropean :inancial <anagement* vol. !2* 1o. !* pp. /(8.. )arford* P. 022.* C=hat drives merger wavesV9* ;ournal o( :inancial "conomics* vol. ;;* pp. .0/(.32. /;

An empirical study of the value creation in +,A - in relation to the strategic rationale )ealy* <. +.* <alepu* %. ?. and 4uback* 4. &. !//0* C6oes corporate performance improve after mergerV9* ;ournal o( :inancial "conomics* vol. #!* pp. !#.(!;. Pensen* +. and 4uback* 4. !/>#* CThe +arket for 7orporate 7ontrol - The &cientific 5vidence9* ;ournal o( :inancial "conomics* vol. !!* 1o. !(8* pp. .(.2. %othari* &. <. and =arner* P. '. !//;* C+easuring long(hori@on security price performance9* ;ournal o( :inancial "conomics* vol. 8#* pp. #2!(##/. Fie* 5. 022!* C6etecting Abnormal Bperating <erformanceD 4evisited9* :inancial <anagement* vol. #2* 1o. 0* pp. ;;(/!. Findenberg* 5. '. and 4oss* &. A. !/>!* CTobin9s q 4atio and Industrial Brgani@ation9* The ;ournal o( #usiness* vol. .8* 1o. !* pp. !(#0. Foderer* 7* and +artin* %. !//2* C7orporate Acquisitions by Fisted AirmsD The 5xperience of a 7omprehensive &ample9* :inancial <anagement* vol. !/* 1o. 8* pp. !;(#8. Foderer* 7* and +artin* %. !//0* C<ost(acquisition performance of acquiring firms9* :inancial <anagement* vol. 0!* 1o. #* pp. 3/(>2. Foughran* T. and Qijh* A.* +. !//;* C6o long(term &hareholders 'enefit Arom 7orporate AcquisitionsV9* ;ournal o( :inance* vol. .0* 1o. .* pp. !;3.(!;/2. Fowry* 4. !///(022>"* 'oncepts and &pplications o( $n(erential Statistics*

<oughkeepsie* Qassar 7ollege. httpDOOfaculty.vassar.eduOlowryOwebtext.html Fyon* P. 6.* 'arber* '. +. and Tsai* 7. !///* CImproved +ethods for Tests of Fong( 4un Abnormal &tock 4eturns* ;ournal o( :inance* vol. .8* 1o. !* pp. !3.(02!. +ac%inlay* 7. A. !//;* C5vent &tudies in 5conomics and Ainance9* ;ournal o( "conomic >iterature* vol. #.* 1o. !* pp. !#(#/. +aynes* 5. and 4umsey* P. !//#* C7onducting event studies with thinly traded stocks9* ;ournal o( #anking and :inance* vol. !;* pp. !8.(!.;. +oeller* &. '.* &chlingemann* A. <. and &tul@* 4. +. 022.* C=ealth 6estruction on a +assive &caleV9* A &tudy of Acquiring(Airm 4eturns in the 4ecent +erger =ave9* The ;ournal o( :inance* vol. 32* 1o. 0* pp. ;.;(;>0. +orellec* 5. and Khdanov* A. 022.* CThe dynamics of mergers and acquisitions9* ;ournal o( :inancial "conomics* vol. ;;* pp. 38/(3;0. />

An empirical study of the value creation in +,A - in relation to the strategic rationale +ulherin* P. ). and 'oone* A. 0222* C7omparing acquisitions and divestitures9* ;ournal o( 'orporate (inance* vol. 3* pp. !!;(!#/ 4avencraft* 6. P. and &cherer* A. +. !/>;* <ergers5 Sell-o(( and "conomic "((icienc1* 'rookings Institution* =ashington* 67. 4hodes(%ropf* +.* 4obinson* 6. T. and Qiswanathan* &. 022.* CQaluation waves and merger activityD The empirical evidence9* ;ournal o( :inancial "conomics* vol. ;;* pp. .3!(32#. &avickas* 4. 022#* C5vent(induced volatility and tests for abnormal performance9* The ?ournal o( :inancial Research* vol. JJQI* 1o. 0* pp.!3.(!;3 &ervaes* ). !//!* CTobin9s : and the ?ains from Takeovers9* The ;ournal o( :inance* vol. 83* 1o. !* pp. 82/(8!/. &hleifer* A. and Qishny* 4. =. 022#* C&tock market driven acquisitions9* ;ournal o( :inancial "conomics* vol. ;2* pp. 0/.(#!!. &udarsanam* &. !//.* The "ssence o( <ergers and &c6uisitions* ed. 'uckley* A.* <rentice )all International $%" Fimited* )ertfordshire. &udarsanam* &. 022#* 'reating 7alue (rom <ergers and &c6uisitions 'hallenges* <earson 5ducation ?roup* 5ssex. Tobin* P. !/3/* CA ?eneral 5quilibrium Approach to +onetary Theory9* ;ournal o( <one15 'redit5 and #anking* vol. !* 1o. !* pp. !.(0/. =ilcoxon* A. !/8.* CIndividual 7omparison by 4anking +ethods9* #iometrics #ulletin* vol. !* 1o. 3* pp. >2(>#. The

//

A55*n(i%*

Appendix AD 4eferences used to divide the /./ deals into the six strategies. Appendix 'D Total list of deals - 6aily &tock <rices Appendix 7D Total list of deals - Accounting Aigures Appendix 6!D 5xample of &A& code T(test" used in relation to daily stock prices Appendix 60D 5xamples of &A& code 4ank" used in relation to daily stock prices Appendix 6#D 5xample of &A& code &ign" used in relation to daily stock prices Appendix 68D 5xamples of &A& code ?en. &ign" used in relation to daily stock prices Appendix 6.D 5xample of &A& code A1BQA" used in relation to daily stock prices Appendix 5!D 5xamples of &A& code T(test" used in relation to accounting figures Appendix 50D 5xamples of &A& code =ilcoxon" used in relation to accounting figures Appendix 5#D 5xamples of &A& code A1BQA" used in relation to accounting figures Appendix AD 1ormality in A4 for the C?eographic9 strategy 6aily &tock" Appendix ?D 1ormality in A4 for the C?eographic9 strategy Acc. Aig." Appendix )D Assumptions regarding the A1BQA for daily stock prices 5vent" Appendix I!D Assumptions regarding the A1BQA for acc. fig.* 4BA 5'IT" 0W" Appendix I0D Assumptions regarding the A1BQA for acc. fig. trans."* 4BA 5'IT" 0W"

A55*n(iA AF R*f*,*n%* ! *( #o (i'i(* #-* @3@ (*$" in#o #-* iA #,$#*4i* . D*$" no. ! O .8080 0 O .8>3! A%.!i,*, 7able , =ireless plc 7ommunication" Tesco plc 4etail" T$,4*# 'elgium 1Q &omerfield plc9s 8. larger stores R*f*,*n%* 7annot find a reference. According to Kephyr should 'elgium 1Q be a fruit trader. Fisted httpDOOwww. tescocorporate.comOpage.aspxV pointeridR#6'..8A7A5 #88'6>>5555AA3#6;!'>#! 'ecause Tesco buys another supermarket chain at the home market* and according the market description* the retail market is characteri@ed by overcapacity ( O'*,%$5$%i#& 6elisted

# O .8/;/

1&' 45TAIF &W&T5+& <F7 4etail"

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. O ..2/> 3 O ..02/

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httpDOOboards.fool.co.ukO+essage.aspVmidR38;28/3 'ecause 1&' buys another supermarket chain at the home market* and according the market description* the retail market is characteri@ed by overcapacity ( O'*,%$5$%i#& 1ational 5xpress group AT7 group Fisted plc httpDOOwww.nationalexpressgroup.comOnxOocOoverviewOhistoryO and httpDOOwww.nationalexpressgroup.comOnxOocOstrategyO 'ecause Transport" they already is present in the $&A but add a new bus company P,o(!%# 7entury Fife Bld multual Fife They are acquired by <hoenix Fife Fimited who again gets acquired Assurance company ltd by another parent company. =olseley plc Terry companies Fisted 4etail of building httpDOOwww.wolseleyinc.caOaboutOhistory.htm 'ecause they supply" already is present in the $&A but add a new product line ( 'altimore ?T5 7yberTrust &olutions P,o(!%# 1ot listed Technologies plc Inc. httpDOOwww. thefreelibrary.comO'altimoreNTechnologiesNtoNAcquire IT(&ervices" N?T5UsN7yberTrust.(a2.>32///; 'ecause there is very little overlap between products and 'T became global market leader - P,o(!%# 4ettig )eating group 'axi9s radiator business 1ot included because we cannot get enough financial data. 4adiatorer" Fassila , Tikanoja Byj =+ Wmparistopalvelut By Fisted 5nvironmental httpDOOwww. lassila( tikanoja.fiOArticle&torageOdisplay.phpV solutions" idR!238.,pR8 They become

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?etty Images inc Arriva plc Transport" +erkantildata A&A IT(providor" InterJ plc %eskinYinen 5lYkevakuutusyhtiZ Ilmarinen <ension" +erkantildata A&A IT(&ervices"

Qisual 7ommunications group +TF services

!0 O .3223 !# O .32!8 !8 O .302>

<rovida A&A 7romwell media ltd Aleksia Byj

market leaders at their home market regarding environmental services - O'*,%$5$%i#& It is an American company and their financial reports are not informative. Fisted httpDOOwww.arriva.co.ukOarrivaOenOaboutXarrivaOhistoryXgrowthOtimel ineO They buy another bus company - O'*,%$5$%i#& 6epartment was sold in 0220. 6oes not exist after 022! 1ot listed httpDOOwww. ilmarinen.fiO<roductionOfiOxXpdfXliitteetXjulkaisutOvuosi kertomusX0222Xen.pdf 'ecause they have real estate but increases the business unit by this deal - P,o(!%# Fisted httpDOOwww.ementor.comOAnnualXreportsOannualXreportXcomO!// /O detteXerXmerkantildata.htm 'ecause the deal increases their forces regarding internet and e(business - P,o(!%# 1ot listed httpDOOwww. tycoelectronics.comOaboutusOhistory.asp 'ecause they acquire more products ( P,o(!%# =as bougth by Kurich Fife in 0228. Fisted httpDOOwww. #igroup.comOshareholdersOpresreportsOreportsO022 2O 'ecause the increases their venture capital and the number of employess in ?ermany ( P,o(!%# Fisted httpDOOwww. nokia.comOA8!#3220VnewsidR;;.8## 'ecause 1okia can offer internet services due to this deal ( Con'*,4*n%* Fisted httpDOOwww. investors.sage.comOstrategyOgrowthXstrategyOacquisitio n XstrategyO 'ecause they already has business in the $&A* but the increases the amount of products ( P,o(!%# 1ot available at the exchange and the financial reports are only available back to 0228 and the deal takes place in 0222.

!. O .30..

Avenir &A

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TW7B 5F57T4B1I7& FT6 5lectronic company" Allied 6unbar Assurance plc #i group plc venture capital"

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1etwork Alchemy inc

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'uhrmann 7omputer reselling and distribution

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'radford , 'ingley 'uilding &ociety +ortgage provider" 'A&& <F7 &oft drink provider"

arm +ortgage ?roup )oldings

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08 O .;#08

Tata Tea ?'" ltd

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Fisted According to Kephyr are they both mortgage providers present in the 'ritish market - P,o(!%t 1ot listed httpDOOwww.allbusiness.comOpersonal(financeOinvesting(stock( investmentsO/!8/3.(!.html 'ecause a soft drink provider buys a hotel chain ( Con'*,4*n%* 1ot available at the exchange and the financial reports are only available back to 022! and the deal takes place in 0222.

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1ewmedia spark plc Qenture capital"

7ell Internet 7ommerce 6evelopment A'

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Fisted httpDOOwww. sparkventures.comOdefault.aspV sectionR#//,pageR!/## 'ecause the target is located in a primary market and produces ( products 4uberoid plc 7annot find any info.which is of &park9s main interest ( +eyer International plc 6oes not exist anymore. <riory healthcare ltd 1ot listed httpDOOwww. ukbusinesspark.co.ukOwee0!00;.htm 'ecause a nursing home is planning to offer stress management programs to companies ( Con'*,4*n%* 'rand(4ex ltd Fisted httpDOOwww.generalcable.comO?eneral7ableOen( $&O7ompanyO)istoryO 'ecause they buy the company to add it to their product line ( P,o(!%# Fex service plc Fisted httpDOOwww. pendragonplc.comO7orporate<rofileO<endragon)istory. a spx 'ecause they operate in the car industry which is characteri@ed by overcapacity and the deal increases their market leader position ( O'*,%$5$%i#& +arconi Actuation systems Fisted inc httpDOOwww. smiths( group.comOsiteAilesOresourcesOreportAttachmentsOexecsummary02 22 .pdf They are increasing their product line regarding aircraft utilities ( P,o(!%# Wale Focks business Fisted httpDOOwww.assaabloy.comOenOcomOAbout(Assa(AbloyO+arket((

door manufacture" ## O .;;>3 #8 O .;;/2 &+? Persey &hanks group plc =aste +anagement" ?inger media group ltd =aste +anagement 1ederland 'Q

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'< A+B7B <F7 '$4+A) 7A&T4BF Bil and gas company" <F7

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)orace &mall Apparel plc &kandia life insurance company real estate investments ltd AI4&T T57)1BFB?W <F7 &5+A ?4B$< <F7 <ost office ltd* the +54ITA1B46'A1% 51 ?4B$< &Zdra cell A' <ulp producer" <earson plc <ublisher"

4edbus Interhouse plc 6IFI?51TIA A'

'randsOAll('randsO 'ecause Wale Focks still exists under their own name* but benefits from the presence of A&&A ( G*o4,$5-i% 6oes not exist anymore. Fisted httpDOOwww. shanks.co.ukOshanksOaboutO'ackground.jspVtnR!,snR8 They enter a new country ( M$,6*# Fisted httpDOOwww. bp.comOextendedsectiongenericarticle.doV categoryIdR!2 ,contentIdR;2#3>!/ 'ecause they increases their product line called lubricants ( O'*,%$5$%i#& They are not at the exchange and the financial reports are not available. It is a subsidiary which buys another subsidiary.

7ITW T57)1BFB?W <F7 F)& ?4B$< I17. 1ederlandske packet 6ienst 1B465A 7B+<A1I5& 651+A4% 1orske &kog A&9 Tofte pulp plant 6orling %indersley holdings plc

The company is bought by another company in 0223. The company is bought by another company later. The company is owned by the government and no data available regarding the deal. The company is bought by another company later. 1ot listed httpDOOwww. sodra.comOenOAbout(&odraO&odras(historyO 'ecause they increases their capacity to be able to satisfy the demand ( P,o(!%# Fisted httpDOOwww. pearson.comOindex.cfmVpageidR#0 'ecause this deal supported the branch regarding the consumer publishing business ( P,o(!%# They are not at the exchange and the financial reports are not available. They are not at the exchange and the financial reports are not available. They are not at the exchange and the financial reports are not available. Fisted httpDOOwww. johnsonplc.comOprofileOcompany(historyO 'ecause they

8# O .>.82

88 O .>3/> 8. O .>>#/ 83 O ./!;3 8; O ./!>.

Fondon 5lectricity group plc Information highway A' Telewest 7ommunications plc Pohnson &ervice group plc

&utton 'ridge power station 'erensOpartner Alextech ltd &emara holdings plc

Textile rental" 8> O ./02# 8/ O ./808 'ritax International plc A+57 <F7 A+57" 7ivil engineering services" 4oyal 'ank of &cotland group plc* the 4'&" Qenture capital" &tatkorn )olding 6airy 7rest ?roup plc 'ellingham International A?4A I17.

.2 O ./80/

&cottish , 1ewcastle plc9s 8>! leased pubs

become market leaders due to this deal within the sector of textile rental ( O'*,%$5$%i#& They are not at the exchange and the financial reports are not available. Fisted httpDOOwww.amec.comOuploadfilesOreport0222.pdf 'ecause their services and their position in the market get better due to this deal ( P,o(!%# 1ot included because managing pubs is to fare from their main activity.

.! O ./8.. .0 O ./.#!

5wos fishfeed unit $nigate plc9s dairy and cheese business

.# O ./;88 .8 O ./>2/ .. O .//!# .3 O 322#8

.; O 32!3. .> O 320#;

'ritish land company plc* the 7A<ITAF 4A6IB <F7 Abbey 1ational Treasury &ervices plc +arconi plc telecommunicatio n equipment manufacturer" 'ritish American Tobacco plc Pohn +ansfield ?roup plc

Aive Fease Ainance companies 'B4654 T5F5QI&IB1 <F7 <orterbrook ltd +etapath &oftware International

6oes not exist anymore. Fisted httpDOOwww. dairycrest.co.ukOourbusinessOourhistory.asp 'ecause this deal made them the leading dairy company and because the retail industry is a mature industry ( Bvercapacity 7annot find a description to support the deal. 7apital 4adio is bought by another firm later on. 1ot included because we cannot find enough documentation.

./ O 3288#

7ap+anByj Qenture 7apital" Qalmet 7orporation

32 O 3288>

Fisted httpDOOquery.nytimes.comOgstOfullpage.htmlV resR/.27506/!5#!A/# 0A!.;.;72A/33/7>'3# 'ecause a telecommunication manufacture buys theto knowhow regarding wireless &7A Tobacco 7orporation equipment 1ot included because according Kephyr the company is a distributor located in Papan. 4exam plc9s printing Fisted division httpDOOwww.communisis.comOassetsOxO.22!! 'ecause the timber company become an information management and communication group - 7onvergence QestcapByj Fisted httpDOOwww.capman.fiO5nOAbout7ap+anO)istoryO 'ecause they merged with Qestcap go gain marketshares ( +arket 'eloit9s service and Fisted

<aper manufacture" 3! O 3230/ 7ookson ?roup plc 7eramics* precious metals* electronics" )aslemere 5states plc 4eal estate investment" A?I< Q51T$45& <F7 Jansa <F7

aftermarket business A7)5+ Faminates

30 O 3238!

&cottish metropolitan <roperty plc '4ITI&)('B415B BIF , ?A& <F7 6ruide group

3# O 3238/ 38 O 3!22/

httpDOOwww. metsopaper.comOV4eadAorm 'ecause the acquired firms keep their names -?eographic Fisted httpDOOwww.cooksongroup.co.ukOcooksonOpagesOinvestorsOirpressV ref R83 'ecause they get production in Asia but at the same time the new production facilities result in lower costs ( +arket 1ot listed According to Kephyr. The target continues as a subsidiary ( ?eographic Is merged into 51I in 022#. 1ot listed According to Kephyr. 'ecause a IT Butsourcing &ervices company buys a business management consultancy 7onvergence 1ot listed httpDOOfindarticles.comOpOarticlesOmiXhb8>33OisX02222.OaiXn!;/23# ; ; 'ecause this merger results in the second largest business within thisafter mature transport industry ( Bvercapacity n.a. &old ! year. Fisted httpDOOwww.aviva.comOindex.aspVpageidR!3; 'ecause they gain significant market shares ( Bvercapacity The company does not exist in its original form anymore. They became a part of +ytravel in 0220. 1ot enough financial data to be included.

3. O 3!2#3

Bcean ?roup plc

1A7 plc

33 O 3!2.0 3; O 3!232

3> O 3!233 3/ O 3!23/ ;2 O 3!2/0

<ower?en <lc 7?$ plc The new name is Aviva and they work with insurance" Information )ighway A' Airtours 4oyal Fondon +utual Insurance &ociety ltd 'raddell plc Qolvo A' Automobile"

F?,5 5nergy 7orporation 1orwich union plc

7onnecta A' old" Travel services international $nited Assurance group plc +etroline plc +ack

;! O 3!!0! ;0 O 3!08#

;# O 3!822

&pectris plc

1o data available. Fisted httpDOOwww. volvo.comOgroupOglobalOen( gbOvolvoNgroupOhistoryOourhistoryOhistoryXintroduction.htm 'ecause they creates a new unit regarding trucks ( &pectris A? &ensoren und <roduct 'ought by subsidiary. &ysteme

;8 O 3!/!3

=<< ?roup plc Advertising"

Woung , 4ubicam Inc.

;. O 30!#0 ;3 O 300>/

4etail &tores plc Anglo American plc

Fiberty plc &hell coal holdings ltd

;; O 30;>3

;> O 30;>/

5nterprise inns plc &ells beer and leases pubs" )arsco Investments $%" ltd Access &ervices" Fuminar plc 1ightclub and entertainment" ?ranada ?roup plc <roperty acquisition and management ltd Iceland foods plc

&wallow9s inns and restaurants &?' &caffolding ?roup plc

;/ O 30;/#

1orthern Feisure plc

>2 O 30>!> >! O 30>/2 >0 O 30/..

7ompass ?roup plc 717 <roperties plc 'ooker plc

Fisted httpDOOwww.wpp.comO=<<O7ompaniesO7ompany6etail.htmVidR023 'ecause the target keeps it name and just continues as a brand ( G*o4,$fi 6 1ot included. Fiberty <F7* 4etail &tores Fisted httpDOOwww.angloamerican.co.ukOarticleOVafwXsourceXkeyR!/562; A#(7.A'(80;7('A75(36A'A7/2#;A; 'ecause this target support their core industry ( O'*,%$5$%i#& Fisted httpDOOuk.finance.yahoo.comOqOprVsR5TI.F They just increases their numbers of pubs-G*o4,$5-i% 1ot listed httpDOOlibrary.corporate( ir.netOlibraryO!2O!2>O!2>.;.OitemsO!/00>0OA4X0222Xpdf.pdf They buy &?' to support the department regarding &caffolding ( P,o(!%# Fisted According to Kephyr. After this deal Fuminar becomes the largest late(night operator in $% ( P,o(!%# This merger only exists for > month. 1ot enough available financial data. 1ot listed httpDOOwww. iceland.co.ukOpageOviewOaboutXicelandXstory They increase their value chain ( P,o(!%# +ore then one acquirer. Fisted httpDOOwww. nationalexpressgroup.comOnxOocOoverviewOhistory O 'ecause they already have business in the $& ( P,o(!%# The company is owned by the government and no data available regarding the deal. They are part of the parent company in +exico. 1ot enough available financial data. Fisted httpDOO>!.02/.!3.!!3O)istoryO4egionalXhistoryO1orthXAmericaO!/>2

># O 30/38 >8 O 3#2/0

7oller capital ltd 1ational 5xpress ?roup plc <ost office ltd* the Thomson(7&A Invest Ftd 7lariant plc &tora 5nso oyj <aper manufacture"

1atwest equity partners ltd9s portfolio &chool services , leasing inc 5xtand 4acal 5lectronics plc 'T< plc 7onsolidated papers inc

>. O 3#.;2 >3 O 3#3!# >; O 3#3!8 >> O 3#3/;

>/ O 3#3//

/2 O 3#;.0 /! O 3#;..

Qodafone Airtouch <F7 Telecommunication" 6elyn group plc 7+? <F7

+annesmann A?

Ingenta ltd Admiral <lc

/0 O 3#;.> /# O 3#;3>

?1 4esound AO& Ashtead group plc 5quitment rental service" &kanska A' &%A.'" 7onstruction" Aalck6anmark AO& =interthur Fife $% )oldings ltd 'urberry group plc Anglian =ater plc =ater and wastewater" +arius <edersen AO& =aste management"

'eltone electronics corporation '5T $&A inc

/8 O 3#;;3

&elmer A&

/. O 3#;;; /3 O 3#;>/

/; O 3#>;2 /> O 38282

?roup 8 &ecuritas international" 'Q 7olonial ltd9s $% life insurance and pension business 'urberry &A Aquas <uerto

X!/// They are already located in the $& but the market is very competitive and to survive companies need to consolidate ( O'*,%$5$%i#& Fisted httpDOOwww. vodafone.comOstartOaboutXvodafoneOwhoXweXareOhist or y.html They buy the largest network in ?ermany ( M$,6*# 1ot enough available data. 1ot listed httpDOOwww. logica.comOreportsNL03NaccountsO!2!20> 'ecause the merger increases the presence in 5urope ( M$,6*# They are a division of ?1 &tore 1ord and the financial data for ?1 4esound is only available until 0220. Fisted httpDOOwww.ashtead(group.comOinvestorsOreportsarchive.asp According to their annual report 0222 was the purpose of the deal to enter the $& market ( M$,6*# httpDOOwww. skanska.comOuploadOInvestorsO4eportsO0222O&kanskaX a nnualXreportX0222Xpart!.pdf D 'ecause this acquisition increased their marketshare in <oland* 1orwey* 7@ech 4epublic anddata ?reat 'ritain ( M$,6*# 1ot financial and not listed. 1ot listed According to Kephyr. 'ecause they are both life insurance providers O'*,%$5$%i#& 'ought by subsidiary. 1ot listed httpDOOwww. thisismoney.co.ukOnewsOarticle.htmlVinXarticleXidR#;/! .#,inXpageXidR0,inXaXsourceR They want to enter new markets and now they have got 7hile ( M$,6*# 1ot financial data and not listed.

// O 382;#

!22 O 38!#. Brange plc !2! O 380#; 7ordiant communications group

=aste +anagement inc9s operations in 6enmark* &lovakia and 7@ech 4epublic Ananova ltd Fighthouse ?lobal 1etwork inc

1ot financial data and not listed. 1ot enough financial data and the webpage do not exist.

plc !20 O 38#!0 Arch chemicals !2# O 38.23 ?uardian IT plc &ecurity software developer" !28 O 38.03 &ignet ?roup plc Pewellery retail" !2. O 38.## '<' plc 'uilding supply" !23 O 383#8 &evern Trent plc =aste +anagement"

)ickson international &afetynet group plc

!2; O 383#3 Airst choice holidays plc !2> O 38>!! 4entokil Initial plc old" !2/ O 38>8# ?=4 group plc !!2 O 38>>> &coot.com plc !!! O 3.!8! )agemeyer $% ltd 5lectrical materials"

It is a holding located in $%* but the parent is located in $&. 1ot listed httpDOOfindarticles.comOpOarticlesOmiXqn8!.>OisX022223!.OaiXn!8#2 #088 They get Fuxembourg which is a difficult market ( +arket +arks , +organ Fisted httpDOOwww. signetgroupplc.comOpagesO!83O?roupN)istory.stm[022 2 'ecause they need the $& market ( +arket 7elotex 7orporation9s 6elisted wallboard and ceiling tile httpDOOfindarticles.comOpOarticlesOmiXqa.#..OisX02222;OaiXn0!8.># > business They increases their market shares ( Bvercapacity $% waste management ltd / Fisted httpDOOwww.referenceforbusiness.comOhistory0O.3O&evern(Trent( <lc.html They become the leading waste manager in the $% market after this acquisition ( Bvercapacity Ten tour group9s tour 1ot enough financial data and the webpage do not exist. operations division 4atin A& 1ot included because they are sold again. 6+? radio group Foot plc =A 5lectrical plc The acquirer is part of a group. &old again in 022! Fisted httpDOOwww. hagemeyer.comOprivatedataO6oc$ploadO>.2OliteratureO. >>2Odocument.pdf They buy a company which keeps its brand and is located in their home market ( ?eographic 1ot enough financial data and the webpage do not exist.

!!0 O 3.!/3 Airst choice holidays plc !!# O 3.8;# Bld +utual plc Asset management"

Qiajes 'arcel\ &F

!!8 O 3.8/2 )alifax plc Ainancial provider" !!. O 3.3#. ?allaher group plc Tobacco product manufacture"

$nited Asset management Fisted corporation httpDOOfindarticles.comOpOarticlesOmiXm25I1OisX0222X&eptX03OaiX3. 8;.230 'ecause they will become a fully owned subsidiary ( ?eographic 'ank Bne corporation9s Fisted 'ritish credit card business According to Kephyr. 'ecause they buy a credit card Issuer ( 7onvergence Figgett(6ucat ltd 1ot listed httpDOOir.gallaher( group.comOirOmediaOnewsX0222.aspV newsR022223!.X2! 'ecause

!!3 O 3.>!3 <earson Television ltd !!; O 3.>32 +etso oyj <aper* minerals" !!> O 33030 4odime plc 'etting and gambling" 1ew nameD &portech in 0222" !!/ O 3382. &uomi !02 O 33823 +etsY(&erla By <aper manufacture"

Talkback productions svedala

Fittlewoods Feisure ltd

this acquisition will increase their position and market share in 4ussia ( +arket <earson is bough by 4TF in 0222 and is today a part of the group. Fisted httpDOOwww. metso.comO About us ( In brief - history" They want to create a industry giant ( ?eographic Fisted httpDOOwww. sportech(plc.comOabouXcompXhist.php They change their business from disc drive and storage system to gambling and betting ( 7onvergence 1ot enough financial data and the webpage do not exist. Fisted httpDOOwww. m( real.comOilwwcmOresourcesOfileOeb>2d;23/cbb.#>OAnnual L02repor tL020222L0251.pdf They want do decrease production costs and build a leading position ( Bvercapacity 1ot listed httpDOOwww. ukbusinesspark.co.ukOdog;;023.htm They buy the company to get access to the 5uropean +arket ( +arket 1ot enough financial data and the company merged in 022!. 6oes not exist anymore. 1ot listed httpDOOwww.ahlstrom.comOmodulesOpageOshowXpage]id]#86'!#7 A A/A58A26A'#!!/0;8A5;A'A3]itemt ype]22#2>';>;>>38./#> . A0/3A.AA68AA;8]tabletarget]dataX!]pid]/6A//7##5./885A 7 0'2./06 #A8'A'the 30] layou t]ah lstrapproved om23.aspby They want to 1otA included because deal was not the 5uropean commission Fisted httpDOOwww. investors.rbs.comOdownloadsO4'&plcAccounts0222.pdf They create a subsidiary which keeps their brand ( G*o4,$5-i%

<ohjola life +odo <aper A'

!0! O 33.2. &ealed air Ftd. <acked food" !00 O 33.33 InTechnology plc !0# O 33.>/ 6et 6anske Traelastkompagni AO& !08 O 33./0 Ahlstrom <aper group BW &pecial paper and fibers"

6olphin packaging

Q6ata ltd &tarkki By A' 6exter 7orporation9s nonwoven materials business

!0. O 333;. &venska 7ellulosa A' +etsa 7orrugated )ygienic tissue products" !03 O 33;#8 4oyal 'ank of &cotland 1ational =estminister group plc* the bank plc

!0; O 33>/8 7able , =ireless plc

<B< <oint of <resence ?mb)

!0> O 33/>0 TJ$ 5urope group plc !0/ O 3;!00 &apa A' old" Aluminium developer"

1orweb energi Anodi@ing inc.

!#2 O 3;!;8 &hore capital group plc Pellyworks plc Investment company"

!#! O 3;!;> Fondon Qista )otel ltd Investment company" !#0 O 3;.2! )olmen A' <aper manufacture"

7orus , 4egal )otels plc

<apelera <eninsular &A

!## O 3;.3> &chroders plc Ainancial adviser" !#8 O 3;38. 514B1 I1Q5&T+51T& <F7 !#. O 3;33! 1orske skogindustrier A&A <aper manufacture"

Fiberty International <ensions ltd +? <F7 Aletcher 7hallenge <aper ltd

Fisted httpDOOwww.cwspain.comOmediaXeventsOmediaXcentreOreleases O0222O2;X!>X0222X82.html They want to get a better position in the 5uropean by offering a wider range of products ( P,o(!%# &ubsidiary+arket of an American firm. 6elisted in 0228 httpDOOwww. sapa.seOpagesO3/8.O&A<AXannualXreportX0222. pdf They want to decrease costs and gain economy of scale ( G*o4,$5-i% Fisted httpDOOwww.e(consultancy.comOnews(blogO!#/38Oshore(capital( acquires(aim((listing(through(jellyworks.html They buy Pellyworks to increase their portfolio and Pellyworks need the money to invest in the companies ( P,o(!%# 1ot listed According to Kephyr. They buy a hotel chain which is in their main portfolio ( P,o(!%# Fisted httpDOOwww. holmen.comO+ain.aspxVI6R3bda.3f!(e.3>(8d/3(>b;3( .;;cb!#bb2.0 They buy this production facility to able to increase their production volume ( O'*,%$5$%i#& Fisted According to Kephyr. 'ecause they have pension fund before they buy this ( P,o(!%# The company is closed. Fisted httpDOOwww. norskeskog.comOInvestorsOInvestors( 5nglishO4eportsOAnnual(reports.aspx 4eport 0222" 'ecause they buy the manufacture to get bigger with regards to their core business in Australia ( O'*,%$5$%i#& Fisted httpDOOwww.gsk.comOinvestorsOannual(reports(archive.htm 4eport 0222" They expect synergies and cost savings as well as becoming a dominant player in their field ( G*o4,$5-i% Fisted httpDOOwww.f ortum.comOgeneralXframelink.aspV pathR!8200M!8208M!

!#3 O 3>!8# ?laxo =ellcome plc 4,6 of pharmaceuticals " !#; O 3>#30 Aortum Byj Bil and gas

&mithkline 'eecham plc

&tora 5nso Byj9s power assets

exploration" !#> O 3>>;3 :JF.com plc Bnline auction" 1ew nameD Tradus" !#/ O 3>>>> '4ITI&) &%W '4BA67A&TI1? ?4B$< <F7 Television broadcasting !82 O 3/20> provider" 45JA+ <F7 <aper packing manufacture" !8! O 3/283 <A 7onsulting group ltd. 'idlet A'

&<B4T& I1T5415T ?4B$< <F7

A+54I7A1 1ATIB1AF 7A1 ?4B$< I17.

)agler 'ailly inc

8203M!828#M!82;2M!82;!M!82;/M#.!20 They increases the volume of their product by !2L ( O'*,%$o$%i#& Fisted httpDOOwww. qxl.comOdownloadOpdfOreportsO:JF0222.pdf They want to become dominant at the 5uropean market and 'idlet has the leading position in the 1ordic countries ( M$,6*# Fisted httpDOOmedia.corporate( ir.netOmediaXfilesOirolO!2O!282!3OreportsOar22.pdf They get offline tele(betting and online betting due to this merger ( Con'*,4*n%* Fisted httpDOOwww.rexam.comOindex.aspVpageidR#2 They start as a conglomerate but this deal makes them focus more on consumer packaging ( P,o(!%# 1ot enough data.

!80 O 3/#;> Atlantic Telecom group Airst telecom group plc plc !8# O 3/83; BF6 +$T$AF <F7 Asset management service" !88 O 3/;;# )&'7 )oldings plc 'anking" !8. O 3///! AIT7) I'7A <ublisher of financial statistics" !83 O ;2!8> 4obotic Technology &ystems plc 4obotic integration" !8; O ;20;2 F57B1<B4T ?544A46 ?4B$< <F7

6o not exist anymore.

77A - 7redit 7ommercial de Arance 6$AA , <)5F<& 7456IT 4ATI1? 7B

=right Industries inc

+5<7 FT6

Fisted httpDOOwww.oldmutual.comOfinancialsOfinancialsArchiveOpresentatio n s6isplay.jsp report 0222" hey build upon their abilities worldwide - M$,6*# Fisted httpDOOwww. hsbc.comO!O0Oabout(hsbcOgroup(history They buy 3.2 branches and get at better presence in Arance ( G*o4,$5-i% 1ot listed httpDOOwww.f itchratings.comOjspOcorporateOAboutAitch.facesVcontext R!,detailR# They want to become a global competitor." &ee group at Kephyr ( M$,6*# Fisted httpDOOwww.r oboticsonline.comOpublicOarticlesOarchivedetails.cfmVid R!80 The deal results in a lot of synergies and they become a significant player in the field - G*o4,$5-i% To many changes in ownership.

5&TAT5& !8> O ;2#!> Invensys plc &oftware and robot"

'aan 7ompany 1Q

!8/ O ;2.2> ?AF51 )BF6I1?& <F7 !.2 O ;2.83 7aradon plc !.! O ;!08# 7apita group plc +anagement 7onsulting service" !.0 O ;!/8! <&IB1 <F7 +obile and wireless networking" !.# O ;!//8 )B+5&TWF5 ?4B$< <F7 )ome furnishing and retailer" !.8 O ;02.! I1? 'arings !.. O ;0!## =atts 'lake 'earne , company plc !.3 O ;0!38 1ATIB1AF 5J<45&& ?4B$< <F7 Transport" !.; O ;0!/# Telelogic A' Qisual software developer" !.> O ;0022 1okia Byj Telecommunicatio n equipment

=A4154 7)IF7BTT <F7 5ff(5ff Arit@ Auss ?mb) , 7o. %?aA I4? group plc

Fisted httpDOOwww. invensys.comOisysOdocsOreportsOaraX0222.pdf They get the opportunity to sell integrated solution regarding automation and software with respect to the value chain* vertical integration ( P,o(!%# Bnly listed at 1A&6A:. 1o financial data and no webpage. Fisted httpDOOwww.capita.co.ukOOO6ocumentsOAnnualX4eportX0222.pd f They buy a company which help companies in the process of becoming a public firm ( <roduct Fisted httpDOOww;.investorrelations.co.ukOpsionOuploadsOreportsOAullAnnu al 4eportAI10222.pdf They increase their focus on wireless network and create a separate division ( <roduct 6elisted httpDOOwww. homestylegroup.comOhomestylegroupO They just get a better product regarding home furnishing ( Bvercapacity 1o financial data. 1ot included. =atts 'lake 'earne merges with another company less than two years after this deal. Fisted httpDOOwww. nationalexpressgroup.comOnxOocOstrategyO 'ecause they increases their market share by buying another 'ritish railway company ( Bvercapacity Fisted httpDOOwww. telelogic.comOcompanyOcorporateXinformationOhistoryOti meline.cfm They acquirer them to support their portfolio ( <roduct Fisted httpDOOpress.nokia.comO<4O02222>O;>3>20.html This deal results in an improvement of the supply of a product 6&F" regarding network

T5%FB?IJ I1T541ATIB1AF I17.

)A4Q5W& A$41I&)I1? <F7

7harterhouse &ecurities Fimited )epworth +inerals and chemicals holdings limited <4I&+ 4AIF <F7

:uality &oftware and systems inc 6iscovery7om inc

manufacture" !./ O ;0#2; ?unnebo A' &ecurity product manufacture" !32 O ;0### Fastminute.com plc Bnline travel agent"

7hubb &afes group

6egriftour group

!3! O ;0.// Amvescap plc Investment fund"

Trimark financial corporation

!30 O ;032. Pohn men@ies plc ?round handling service" !3# O ;03>; +arconi plc

Bgden Aviation services

Albany <artnership limited

!38 O ;0;20 <5A4&B1 <F7

1ATIB1AF 7B+<$T54 &W&T5+& I17.

!3. O ;0;23 ?ranada +edia plc !33 O ;0;0. 'un@l plc <aper packaging manufacture" !3; O ;0;#8 'ristol , =est plc 'anking"

$nited 1ews , media plc9s television assets ?reenham Trading ltd

solutions ( <roduct Fisted httpDOOwww.gunnebo.comO14OrdonlyresO'0';8>8'(#62#(8528( AAA3(7062228AA32!O2O?unneboAnnual4eport0222.pdf 6ue to the fact that the industry is characteri@ed as one with excess capacity ( Bvercapacity 6elisted httpDOOcws.huginonline.comOFO!#!>82O<4O02222>O>;.;8/X.X0.ht ml They get a good position in Arance which is seen as an important market in 5urope ( +arket 1ot listed httpDOOfindarticles.comOpOarticlesOmiXm25I1OisX0222X+ayX/OaiX3!/ 380!8 'ecause they gain a significant market share and additionally also expand their product portfolio ( +arket Fisted According to Kephyr* the deal was to support the core business regarding ground handling services in relation to aviations ( <roduct Fisted httpDOOfindarticles.comOpOarticlesOmiXm2=QIOisX0222XAugustX;OaiX 3#/>/;>> They make the purchase to increase their #? network ( <roduct Fisted httpDOOwww. pearson.comOindex.cfmVpageidR!88,pressidR02 They get a product which can expand their business unit regarding education and get a lot of new opportunities to create new products and markets ( 7onvergence <art of a bigger group. According to @ephyr they both produces packaging ( <roduct

7hase de vere investments 1ot listed plc httpDOOfindarticles.comOpOarticlesOmiXm25I1OisX0222XPulyX0>OaiX3# ;80/.! The purpose is to increase the presence of 'ristol , =est and expand the independent advisory service Bvercapacity !3> O ;0;./ Tullow oil plc '< Amoco9s &outhern Fisted Bil and gas extraction" 1orth &ea assets httpDOOwww. tullowoil.comOtlwOaboutusOstrategyO and

!3/ O ;0;>/ Advent capital holdings"plc !;2 O ;0>!> <ernod 4ichard &A !;! O ;0/#/ 1& )BF6I1? A' !;0 O ;#2!. Airst 1ational vehicle holdings ltd 7ontract hire and purchase service" plc !;# O ;#20/ 7entrica ?as produktion and distribution services" !;8 O 4IB TI1TB <F7 ;#!2! +ining"

%ingsmead $nderwriting Agency ltd &eagram 7ompany ltd9s spirits and wine division 1B44<B4T51 AA&TI?)5T& A' )ighway Qehicle management

httpDOOwww. tullowoil.comOtlwOaboutusOhistoryO02220228O They invest to increase their asset(base - Bvercapacity 1ot enough data regarding the deal.

1ot included because <ernod 4ichard is located in Arance. 1ot enough financial data. 1o financial data.

6irect energy +arketing ltd

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Faird group plc* the 5lectronic component equipment manufacture" &cottish , &outhern 5nergy plc ?as and utility services"

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Fisted httpDOOwww.centrica.co.ukOindex.aspVpageidR#/,newsidR!2,typeR !;,yearRarchive They get the opportunity to new services and products ( Bvercapacity Fisted httpDOOwww.riotinto.comOwhoweareOstrategy.asp and httpDOOwww.riotinto.comOwhoweareOtimeline.asp They only invest to better their core products and portfolio ( O'*,%$5$%i#& 1ot listed httpDOOwww. morrisonplc.comOwho(we(areO+orrison supports utility companies in relation to repair and maintenance* therefore this deal is a way to make investments in respect to the value chain ( Con'*,4*n%* Fisted httpDOOwww. laird(plc.comOaboutOindex.cfmVfR! They enter the electromagnetic shielding industry which is different from the other engineering projects they have been doing so fare ( Con'*,4*n%* Fisted httpDOOwww. scottish( southern.co.ukO&&5InternetOindex.aspxV pageTypeR!,right7ol)ead erR02,idR#/8,Tier&licer!XT&+enuTargetI6R.>,Tier&licer!XT& +enuTargetTypeR8,Tier&licer!XT&+enuI6R3 They operate as a division with their own name ( G*o4,$5-i% 1ot enough data.

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Fisted httpDOOwww.riotinto.comOwhoweareOstrategy.asp They only invest to better their core products and portfolio ( O'*,%$5$%i#& Fisted httpDOOwww. bhpbilliton.comObb7ontent4epositoryO4eportsO022!') <'illitonFtdAnnual4eportXpart7.pdf They increases their activity within the cobber production due to this acquisition ( O'*,%$5$%i#& Fisted httpDOOwww. investor.barclays.co.ukOresultsO0222resultsOannualXrev ie wOfilesO3(!!.pdf They want to use this merger to boost their competitive advantage in mortgage and saving market ( O'*,%$5$%i#& Fisted httpDOOw#.upm( kymmene.comOupmOinternetOcmsOupmcms.nsfO ^allO;/>;!f...;32a0 a/c00.3e0;220fc!ebV Bpen6ocument,qmRmenu*2*2*2 pdf. 4eport 0222" They make the deal to strengthen their product called paper maga@ines because it is a main product ( P,o(!%# Fisted httpDOOwww. skanska.comOuploadOInvestorsO4eportsO0222O&kanska Xa nnualXreportX0222Xpart!.pdf They increases their local presence in $% and also in 7hina because %vaerner construction ?roup limited own some companies over there ( O'*,%$5$%i#& Fisted httpDOOwww. hospitalitynet.orgOnewsO82!#!>/.searchV queryRmaryleb oneNwarwickNbalfourNgroupNplcN L0bNmalmaisonNhotelN They increases their market position and the hotels keeps their names ( G*o4,$5-i% 'ought by <<F in 0220. httpDOOwww. odfjell.comOinternetOframes.aspVcompany They can now not only store the oils* but also transport it from harbour to harbour ( Con'*,4*n%* 1ot enough data.

!># O ;#8/0

&kanska A'

%vaerner construction ?roup limited

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+arylebone =arwick 'alfour ?roup plc )otel operator"

+almaison hotel ltd9s properties and business

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=5&T541 <B=54 6I&T4I'$TIB1 FT6 Bdfjell A&A &hipping service" Aocus do it all ltd 1ational ?rid ?roup

)W654 <F7 &eachem

=ickes plc

1iagara +ohawk )oldings Fisted

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httpDOOwww. nationalgrid.comO14OrdonlyresO77;;A#'A(588!( 822;(>A;6(#8#/!3.70>3'O.08Oannualreport22X2!.pdf The target fits well with their existing businesses in the $& and improves their market position ( O'*,%$5$%i#& &tandard 7hartered plc 7hase +anhatten 7ard Fisted 'anking" company limited httpDOOwww. telegraph.co.ukOmoneyOmain.jhtmlVxmlRO moneyO0222O2/O20Ocnstan20.xml They make the deal to be get a bigger part of the banking market in )ong %ong and thereby being able to compete better with respect to )&'7 ( M$,6*# Abbey 1ational plc &cottish <rovident Fisted institution* the httpDOOwww.aboutabbey.comOcsgsO&tatic'&V blobcolRurldata,blobhe aderRapplication L0Apdf,blobkeyRid,blobtableR+ungo'lobs,bl obwhereR!!!>/0>2.2.23,cachecontrolRimmediate,ssbinaryRtr ue maxageR#322 They get access to 6ubai* )ong %ong and Ireland &pirent plc Karak &ystems 7orporation , Fisted httpDOOwww. spirent.comOdocumentsO820#.pdf They get a new product which can support there existing product ( P,o(!%# Aield group plc Airst carton group ltd 1ot listed Aood httpDOOwww. packagingnews.co.ukOnewsO80.#;.O7hesapeake( packaging snaps( Airst(7artonOThey gain assets utili@ation and can serve a manufacture" even larger part of 5urope ( O'*,%$5$%i#& )ill , &mith holdings Ash , Facy plc Fisted plc httpDOOmiranda.hemscott.comOirOhilsOpdfOAnnualX4eportX0222.p df They strengthen their core business activities and get new Aabricated product opportunities - O'*,%$5$%i#& structural metal manufacture" 'altimore Technologies 7ontent Technologies 7annot find the deal. plc holdings ltd 7adburry &chweppes plc &napple 'everage corporation Fisted httpDOOwww.cadburyschweppes.comO51O+edia7entreO<ress4eleas es OsnappleX0.!222.htm The product fits their portfolio and is efficient ( P,o(!%# Fisted httpDOOwww. smiths( group.comOsiteAilesOresourcesOreportAttachmentsO&mithsX4A.pdf Th ey improve their aerospace division ( P,o(!%#

inc.

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&miths industries plc

TI group plc

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Fisted httpDOOwww.finansnyheder.dkO1ewsO&how1ewsstory.aspxV&toryI6R /#!#>>#They get access to a lot of markets outside of &candinavia ( M$,6*# <ows@echne Towar@ystwo <art of a bigger group. 5merytalne 1orwich $nion Adtran@9s rail Fisted electrification and traction httpDOOwww. balfourbeatty.comObbyOaboutOhistoryO and power business httpDOOwww. balfourbeatty.comObbyOinvestorsOreportsOV archiveRyesTh ey make the deal to be able to become market leaders - O'*,%$5$%i#& Timebridge technologies Fisted inc httpDOOwww. dimensiondata.comO14OrdonlyresO727.5A..(A#7/( 8773(>6;#(A'A7/37A36;!O3/!2OAnnual4eport0222!.pdf They get to cover 03L of the 5astern market of the $& ( M$,6*# Intercare group plc* the +acarthy group ltd Bpk_bt af cardinal health i 2#O28 ( pharmaceuticals (pharmaceuticals %an f` # `rs data inden overtaget. httpDOOwww.citywire.co.ukOadviserO(OnewsOmarket(and( sharesOcontent.aspxVI6R0!#!!8 5xtending prescription drugs business ( P,o(!%# &miths industries plc Aairchild defense httpDOOwww. orbital.comO1ewsInfoOrelease.aspVpridR03; (aerospace &upports the areas of manufacturing and aerospace - P,o(!%# +arconi plc +ariposa technology inc 1ot included Telecommunication FondonD +1I" A< Aastigheter A' 6iZs Anders 6iZs A' httpDOOwww. dios.seOengOfactsandhistory.html httpDOOwww.apfastigheter.seOTemplatesO<age.aspxVidR0.; They try to get a better market position by cutting costs ( O'*,%$5$%i#& Asda group plc -retail - 8> In(store +oss h ttpDOOwww.wa lmartfacts.comOarticlesO#.3!.aspx 'ecoming a giant F&5 A&6A" <harmacies supermarket chain offering all product categories - extend product lines - complementary product ( P,o(!%# =yevale garden 7ountry gardens <F7 httpDOOwww. prnewswire.co.ukOcgiOnewsOreleaseVidR802.> centres According <F7 to Kephyr* they have a history of buying competitors ( O'*,%$5$%i#& Butokumpu &teel Byj Avesta &heffield A' httpDOOwww. thefreelibrary.comOAvestaN&heffieldDNWear( (st`l B$T!Q" endN4eportNforNAprilN(N6ecemberN0222(a2;2;#2./2

6A6& 6an transport

Avesta<olarit "

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&ydkraft A' 7adburry &chweppes plc - retail 7'4W F&5" - 7&? 1yse" )uhtamaki Qan leer Byj - )$)!Q" ( manufacturing

&akab A'

httpDOOwww. purchasing.comOarticleO7A!#/03!.html Two of the largest stainless steel producers in 5urope - contration of industry - 4enamed Avesta<olarit right after the merger listed on B+ ( O'*,%$5$%i#& 1ot included because 0 companies by &akab together.

Brangina &chweppes &A& After buying Brangina* 7adbury &chweppes becomes second biggest on the Arench market ( O'*,%$5$%i#&

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httpDOOwww. huhtamaki.comO=ebsites.nsfOindexO =ebpage#.AA!Vop en,siteRcom httpDOOwww.allbusiness.comOcompany(activities( managementOproduct(managementO3./2###(!.html 'uys a packaging manufacturer in another geographic area - Is established in the $& market which is characteri@ed by consolidation - O'*,%$5$%i#& httpDOOwww. danskebank.comOda(dkOirOkoncernenOfusioner(koeb(og( salgO<agesOfusioner(koeb(og(salg.aspx They add an new area to their business ( Con'*,4*n%* 1on information available

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6anske bank AO& banking 6A1&%5"

4eal 6anmark AO&

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&pectrasite Transco 7ommunications ltd (telecom Tele0 A' - telecom T5F0.'" Anglo American plc Fogica plc -telecom FondonD FB?"

Aerial &ites plc

'alt7om ?&+ 7arbocol <dv $nternehmensberatung ?mb)

httpDOOfindarticles.comOpOarticlesOmiXm257KOisX0222XBctX8OaiX3.; ##;/; They complete their presence in the baltic region ( M$,6*# 1on information available httpDOOwww. telegraph.co.ukOmoneyOmain.jhtmlVxmlROmoneyO0222O! 2O23Ocnlog23.xml ( 1eed to expand into the largest market in 5urope ( Annual report 022!D They build a stronger presence in ?erman market - M$,6*# httpDOOfindarticles.comOpOarticlesOmiXqa.#>0OisX0222!0OaiXn0!838. 3 ;tt They creates the chain (R P,o(!%# h pDOOwww. bitcosynergies nomy.dkOdin efa ult.value aspVar ticleid /8! - )6 keeps their name* ?1 obtain a position as leader in the market for hands( free telecommunication solutions - G*o4,$5-i%

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Butokumpu Byj - &teel 1or@ink A& industry B$T!Q" ?1 &tore 1ord AO& )ello 6irect Inc. ?1"

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Alliance $nishem plc pharma wholesaler

Interpharm ?roep pharma

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Anglo American plc 4oyal Fondon +utual Insurance &ociety ltd +arconi plc -Telecom FondonD +1I"

7errejon @ona 1orte &cottish life Assurance company* the &plice do 'rasil transmissions business

httpDOOeuropa.euOrapidOpress4eleasesAction.doV referenceRI<O22O!80 3 A$ present in many 5uropean countries* with acquisition of Interpharm presence in 1F ( M$,6*# n.a. sold to gained a consortium. 1ot enough financial data. httpDOOwww.prnewswire.comOcgi( binOstories.plVA77TR!28,&TB4WROwwwOstoryO!2(2/( 0222O222!##0/3!,56AT5R They improve the product range in Fatin America ( P,o(!%# httpDOOfindarticles.comOpOarticlesOmiXm##;8OisX!3X00OaiX3;.2#8#8 ( Acquisition significantly enhance consumer healthcare business new products ( P,o(!%# httpDOOwww. docs.cgi( iversion.comOVidR>T)'J.61)#86,pageR!0,si@eR0 They complete the deal to become the biggest fund manager in &cotland ( O'*,%$5$%i#& httpDOOwww. nortonrose.comOnewsOpre#!2;Onews3/;2.aspx httpDOOwww. petrochemcarless.comOdocsOaboutXusXhistory.htm 1eeded to market new products acquired carless" ( P,o(!%# httpDOOwww. miller.co.ukOnewsXarticle.aspVI6R#3,divisionRgroup 'irch an excellent presence in a new geographic market ( M$,6*# httpDOOwww. secinfo.comOdsT%g..Pg.d.htm =ill significantly improve ericssons place as market leader. +<6s strength is extremely important in development of #? R&D httpDOOfindarticles.comOpOarticlesOmiXm257KOisX0222X&eptX0>OaiX3 . .#!3./ ( one of worlds leading secure internet connectivity solutions. Improve area of internet access products - product line extension httpDOOsiliconinvestor.advfn.comOreadmsg.aspxV msgidR!8.2;03> Acquired by 0220 (e P,o(!%# httpDOOwww. of+<I gemtech .gov.in ukaugust OAboutL 02usO nforcementOmergersOoftO6o

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&mithkline 'eecham plc Aberdeen Asset +angement plc financial services* A61" <etrochem $% ltd

'lock 6rug 7ompany

+urray Pohnstone )oldings Fimited

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7arless 4efining , +arketing ltd 'irch +icrowave power 6evices inc

+iller group ltd ( housing Telefonaktiebolaget F+ 5ricsson 54I7W"

i(data International AO& 5icon Technology (IT 7orporation

00> O ;3888 00/ O

Fondon 5lectricity ?roup plc &pirent plc - &<TD

7ottam power station

cuments!OmergersandaquisitionsL023/.pdf They completed a vertical merger - P,o(!%# 1et()B<<54 &ystems Inc httpDOOfindarticles.comOpOarticlesOmiXm2=QIOisX0222XBctX0#OaiX33

;3.;8 0#2 O ;3>#!

F&5" Amvescap <lc invesco" Ara 022; - invesco F&5D IQK" 1ewmedia spark 1+& until 022;. 1ame change to &park &<%.F" Ajord &eafood A&A (inactive 022;D +arine )arvest* +)? 1&' 4etail &ystems plc -1&'DF1 software 7arlton 7ommunications plc 77+.F" (ITQ 0O0(28" &onera &martTrust (telecom 7oflexip &tena Bffshore Trinity mirror 4egionals plc newspaper publisher Trinity mirrorD T1I" Telewest 7ommunications plc traded on nasdaq until 0228(2. ?ranada 7ompass plc compass group plc Fand &ecurities <erpetual plc

82;!88 They extend reach into a different geographic market M$,6*# 1ot included

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&<A4% intends to consolidate its position as one of the leading technology investment companies in 5urope. - Kephyr ( O'*,%$5$%i#& httpDOOwww.fjordseafood.comOfilesOdocumentsO0222Xeng.pdf Qertical integration and improvement of value chain ( P,o(!%#

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Across )olding A' Aker +aritime A&AUs deepwater engineering activities &outhnews <lc

Acquired by 5picor 022> httpDOOwww. lexpert.caOdeal.phpVidR!020 1&' will gain substantial presence in north America - M$,6*# httpDOOnews.bbc.co.ukO!OhiOwalesO/>>282.stm Wear long consolidation. Acquire approximately .2L of marketshare in ITQ. httpDOOwww. brandrepublic.comO1ewsO8.;>/O ( make good use of )TQ9s high quality performance ? O'*,%$5$%i#& 'usiness unit of sonera ltd* sonera del af telia&onera n.$. 1ot included

httpDOOimages.icnetwork.co.ukOdocsOtmcorporateO2222'258(5.3A( !0!2(>'32>27#0>572222.pdf Aully owned subsidiary of trinity mirror plc. - G*o4,$5-i% No# in%"!(*(

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5urobell Ftd

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'eaver Aoods Trillium Investments ?<

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(FA16.&57& F&5" 7arlsberg AO& 7A4F A* 7A4F '" Assa Abloy A' A&&A.' Travelex plc ( foreign currency provider %emira Byj -%4A!Q +anufacturing 1arvesen A&A (4eitan 1arvesen 4io Tinto plc ( mining (4IB I)I )olding AO& health insuranse Trelleborg A' T45F.'

Ftd

!O2#Ocnland2#.xml Add a new branch to existing business* property outsourcing - P,o(!%# AeldschlZsschen ?etrYnke h ttpDOOwww.car lsberggroup.comOmediaO1ewsO<agesO2#!!0222felds c )olding A? hloesschen(&5A0222.aspx &trategic acquisition to reach the goal company the -22 M$,6*# )ughes Identification h ttpDOas Ofinthe dartleading icles.com OpOarticlewithin sOmiXm2 5market I1OisX02 X1ovX3OaiX333 6evices 0!/!3 Adds leading technology ( R&D Thomas 7ook Ainancial &ervices Ftd Alcro('eckers A' httpDOOfindarticles.comOpOarticlesOmiXm25I1OisX0222X1ovX>OaiX33; 282;3 <rivately held company not listed - O'*,%$5$%i#& httpDOOwww.referenceforbusiness.comOhistoryOPa(FoO%emira( Byj.html In !/// redefined strategy to focus on three core areas* one of these strengthened by acquisition of A' ( P,o(!%# 4etail giant in 1orway - consolidation 6elisted in 0220 - O'*,%$5$%i#& httpDOOwww.riotinto.comOwhoweareOtimeline.asp Qertical integration improving resource base - P,o(!%# 1ot included due to lack of information

45+A !222 1orge A& Ashton +ining Ftd International )ealth Insurance danmark AO& Faird ?roup plcUs auto component unit

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&pirent plc - &<TD F&5" telecom

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1avision &oftware A&

httpDOOwww. trelleborg.comOenOInvestorsOAcquisitions(and( 6ivestmentsO httpDOOwww. theautochannel.comOnewsOpressOdateO022!2!20Opress2 ## 8tt 2p #DO .h ml Acquisition to strengthen core )ekimian Faboratories Inc. h Ot www.a llbusiness .c omOcompan y(acbusiness tivities( - O'*,%$5$%i#& managementOcompany(structures(ownershipO3.>23;/(!.html 5xpertise and technology in the companies complement each other - step to become world leader - P,o(!%# 6amgaard AO& 1ot included due to lack of information 5mail FtdUs household appliance making unit httpDOOir.electrolux.comOfilesO5lux(annual(022!(en.pdf ( &trengthen core area by acquiring A$& largest appliance manufacturer httpDOOwww.electrolux.comOnode#..aspxVidR!#;8> strengthen global position* world no. ! ( O'*,%$5$%i#& httpDOOinvestors.hexagon.seOfilesOpressOhexagonOhexagonXannualXr ep httpDOOwww. thefreelibrary.comO'rownN,N&harpeNAnnouncesN&al e

5lectrolux A' 5F$J.'" -home appliance manufacturer 0.0O ;>.!; )exagon A' )5JA.'" Technology group

'rown , &harpe +anufacturing 7ompanyUs metrology business

0.#O ;>.## Intec Telecom &ystems 7omputer ?eneration Inc. plc ITF" (&oftware vendor

NofN+ajorNBperatingN'usinessesNto...(a23;282.!/ ( redirect business ( focus on new high(tech market ( Con'*,4*n%* KephyrD 5xtend coverage to 1A and broaden product range httpDOOfindarticles.comOpOarticlesOmiXm257KOisX0222X1ovX00OaiX3; 033//2 ( geographic expansion and diversification of product portfolio httpDOOwww. thefreelibrary.comOIntecNTelecomN&ystemsN5xpands NI ntoN1orthNandN&outhNAmerica(a2;#2.;!8; - take the new product from 7? worldwide establish Intec division in mediation" - P,o(!%# 1ot listed httpDOOwww. thisismoney.co.ukOnewsOarticle.htmlVinXarticleXidR#;#! 2#,inXpageXidR0,inXaXsourceR ( acquire a $% publisher* but the name remains unchanged - G*o4,$5-i% 4enamed 5dda media in 0223 after being acquired by +ecom httpDOOwww. huginonline.comOreportsO;//;;.O>.!!2.pdf ( establishing the . largest in the 1ordic region* acquiring 6anish publisher which is established as its own segment ( G*o4,$5-i% 1ot included due to lack of information.

0.8O ;>;>! 1orthern , &hell ?roup Ftd (newspaper publisher and distributor 0..O ;>>0/ Brkla +edia A& (newspaper publisher

5xpress 1ewspapers

6et 'erlingske Bfficin AO&

0.3O ;>>#; <illar 7ity plc

=ates 7ity of Fondon <roperties plc 'A5 &ystems 5lectronics FtdUs <ower , 7ontrol 'usiness ?reat +ills 4etail"

0.;O ;/82> 7obham plc 7B'" (aerospace and defense systems manufacturer 0.>O Aocus 6o It All Ftd ;/.#/ (retailing

0./O ;/.88

Qodafone ?roup plc QB6" - mobile telecommunication service 'ank of &cotland ?overnor , 7o of"

5ircell Ftd

httpDOOfindarticles.comOpOarticlesOmiXqn8!.>OisX0222!02.OaiXn!8#3 23!8 ( complement existing business within on business unit ( P,o(!%# 1ot listed httpDOOwww.focusdiy.co.ukOpageOpoaboutfocus ( acquisition of /> stores complementing existing business httpDOOfindarticles.comOpOarticlesOmiXqn8!.>OisX02222;!/OaiXn!8# # 2#/# ( acquisition due to consolidation in the industry* gaining market share O'*,%$5$%i#& httpDOOwww. vodaf one.c om OstartOaboutXvodafoneOwhoXweXareOhistor y.html ( Acquisition of Ireland leading mobile communication company httpDOOquery.nytimes.comOgstOfullpage.htmlV resR/7275;63!A#/A/ #!A!.;.!7!A/33/7>'3# - entry to the irish market ( M$,6*# After merger with I77* renamed 'B& Ireland" 1ot included* only accounting information from 0228

032O ;/..2

I77 'ank plc

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('anking services 1okia Byj 1B%!Q" (telecommunication &hire <harmaceuticals ?roup plc <ubmistress Ftd

4amp 1etworks Inc.

httpDOOwww. nokia.comOA8!#3220VnewsidR>2!#3> ( &trengthen existing I< 1etwork &ecurity &olution portfolio ( P,o(!%# httpDOOwww. shire.comOshireOuploadsOreportsO022!$%?AA<accounts =eb.pdf ( acquisition to strengthen early phase development ( R&D Acquisition vehicle ( # owners

'io7hem <harma Inc.

<ubmaster ?roup Ftd

7lose 'rothers ?roup plc 7'?" (Ainancial services Ineos 7apital Ftd

Transamerica Insurance Ainance 7ompany 5urope" I7I Teijin Aluorochemical Ftd ?) +umm , 7ompagnie

03.O ;/;.; 033O ;/>>8

httpDOOboards.fool.co.ukO+essage.aspV midR3#2..3;,sortRrecomme ndations ( To merge with existing insurance division gaining operating efficiencies. &ame focus and same country ( O'*,%$5$%i#& &ubsidiary acquired for the purpose of this one acquisition.

Allied 6omecq plc 6elisted in 022.

03;O ;//2>

5niro A' 514B" (publisher

=er liefert wasV ?mb)

03>O ;//00

03/O;//>8 0;2O >22!.

Tilbury 6ouglas plc (engineering services 4enamed interserve in 022! 6egussa &%= 7o 'odycote International plc 'BW" ( supplier of testing and thermal processing services

'uilding , <roperty )oldings" Ftd

Faporte plc Findberg 7orporation

Alcoholic beverages producer* delisted in 022. after acquisition by <ernod 4ichard httpDOOwww.euromonitor.comOpdfOworldXleadingXglobalXbrandXow n ers.pdf ( entering the champagne area - P,o(!%# KephyrD acquire on of the worlds largest '0' publishers httpDOOwww.eniro.comOuploadO7orporateOInvestor L024elationsOAina ncialL02reportsOAnnualL02report022!.pdf enable eniro to establish online '0' publishing - P,o(!%# 1ot listed httpDOOwww. interserveplc.comOplcOaboutusOhistory.htm ( +ove from construction and into support service sector* not the first acquisition in this aim - 7on'*,4*n%* 1o information about this deal - not included httpDOOwww. bodycote.comOVB'R!>,<B'R0 - acquisition of Findberg world leader in thermal" more than doubles the company9s presence in the $& 'odycote A4 022!D Acquisitions complement existing business and helps geographic expansion. 'ecomes market leader in $& - O'*,%$5$%i#&

0;!O >22>. 0;0O >2!!#

0;#O >2#0;

0;8O >280;

&ecuricor plc 4enamed group 8 securicor in 0228. plc - telecom +arconi equipment manufacture r &vensk a )andelsbanken A' &)'.A" - financial services +acquarie 5uropean Infrastructure plc

Argenbright &ecurity Inc.

&ystems +anagement &pecialists Inc

httpDOOwww.answers.comOtopicOsecuricor(plcVcatRbi@(fin improving aviation services* acquiring the largest player in 1A and become world leader in aviation services - O'*,%$5$%i#& &+& divested in 022# - less than # years later

&<< FivfZrsYkring A'

'ristol International Airport plc

httpDOOwww. handelsbanken.seOshbOI1eTOI&tart&v.nsfOArame&etV Bpe nQiew,idR)andelsbanken&55nglish,ampMdocnameR)andelsba nk en&5L02aL02AirstL02page - To become largest player in occupational pension area - O'*,%$5$%i#& Two companies are acquiror

0;.O >28#8 0;3O >28#>

Fohja ?roup (<roduction of paper $nited $tilities plc $$" - water and waste system operator

4exam 4elease Ftd

4enamed in response to the merger - Foparex 1ot quoted and no accounts available httpDOOwww. unitedutilities.comOVB')R8/;> ( reinforces its position in the industrial water and wastewater treatment sector httpDOOwww. datamonitor.comOindustriesOnewsOarticleOVpidR>/6A7A 0/(A2'A(8'#A(//63(>6/832;#036/,typeR1ews=ire establish market position in two new product areas - P,o(!%# httpDOOwww. iii.co.ukOinvestmentOdetailVcodeRcotnD%?A.F,displayR news,itRle,periodR0222 - subsidiary 76I purchase through retailer ',: the 0> facilities ( M$,6*# httpDOOboards.fool.co.ukO+essage.aspV midR3#00>;;,sortRwhole 1ot listed* 1o enough separate information on protocol subsidiary of bridge point capital 1ot included 6elisted in Pune 022# httpDOOwww. letsrecycle.comOdoOecco.pyOviewXitemVlistidR#;,listcat idR#2>, listitemidR00.# - part of geographic expansion plan M$,6*# Bnly accounts from 022# and onwards - not included

)yder Industrial Ftd

0;;O >2.88

0;>O >232! 0;/O >23/3

0>2O >2;23

%ingfisher plc %?A" home improvement retail group <rotocol Associates Ftd (management info software provider =aste 4ecycling ?roup plc - waste managemen t ?ala ?roup Ftd - club operator

0> non(trading store development sites

&pring 5ducation

)anson =aste +anagement

Fadbroke 7asinos Ftd

0>!O >2;0; 0>0O >2;;#

4enamed in 022. after mergerD ?ala 7oral group &cottish <ower plc 4ye )ouse <ower &tation electricity generator Fiverpool Qictoria Ariendly &ociety Ftd (insurance* banking and investment ?erber Aoods )oldings Ftd (fruit juice manufacture <ermanent Insurance 7ompany Ftd

httpDOOwww. scottishpower.comOInvestor1ews0X!#.8.htm ( improve market presence and capacity in $% - M$,6*# 1ot listed httpDOOwww. hi( mag.comOhealthinsuranceOarticle.doV articleidR022222>!!3> - expand into new market area M$,6*# KephyrD Increase customer base in 5urope httpDOOfindarticles.comOpOarticlesOmiXhb.08.OisX0220!!OaiXn!/>;/! 0. ( largest juice manufacturer in 5urope* become more flexible ad drive down costs - O'*,%$5$%i#& 6elisted in 022; httpDOOwww. hansonplc.comOindex.aspV <ageI6R0/!,WearR022!,1 ewsI6R;. - critical mass in the market* complement existing business - O'*,%$5$%i#& Fack of account in 0222 Acquired in 022!* changed name back in 0220 1ot included 1ot included

0>#O >2>!;

5mig A?Us fruit juice business

0>8O >2/82

)anson plc 6avon Inc (concrete manufacturer

0>.O >!.32 0>3O >!3!2

0>;O >!;0! 0>>O >!/;3 0>/O >020>

&anitec 7orporation (manufacture of sanitary ware ?o(Ahead ?roup plc ?B?" (airport and bus transportation <ersimmon plc <&1" (construction 7row Aerodromes

7aradon 'athrooms Ftd

+idland Airport &ervices )oldings" Ftd

'ea@er ?roup plc

httpDOOnews.bbc.co.ukO!OhiObusinessO!!##/>3.stm ( consolidation in the construction industry - O'*,%$5$%i#& Acquisition vehicle created with on purpose( this deal" operating on behalf of +anchester airport* not included httpDOOwww. sca.comOdocumentsOenOAnnualX4eportsOAnnualX4eport X022!Xen.pdf ( the largest # constitute >>L of the market - the acquisition makes &7 the # largest - O'*,%$5$%i#& httpDOOwww. sca.comOdocumentsOenOAnnualX4eportsOAnnualX4epo rt X022!Xen.pdf ( critical masse and potential for further consolidation

5ast +idlands Airport

&venska 7ellulosa A' &7AD'" ( producer of consumer goods and paper products

Away Arom )omeUs tissue operations

0/2O >02;# 0/!O >0!#!

0/0O >002.

<ro&afe A&A +angler ticker" ($tility production Amvescap plc ( Fistet* renamed invesco financial services* asset management" Taylor =oodrow plc ()ousing construction 4enamed Taylor =impey in 022; <rudential plc F&5D<4$.F" (financial services* insurance

1ortrans Bffshore Ftd

1ational Asset +anagement 7ompany

'ryant ?roup plc

0/#O >00>#

Brico Fife Insurance 7o. Ftd

httpDOOwww. prosafe.comOgetfile.phpO<6AL02AilerOAnnualL02repor tsOA4L02022!L02(L02e.pdf - becomes major player in Asia* a move into floating production - P,o(!%# httpDOOwww. invesco.comOinvestOreportsOannrptX2!.pdf ( add to existing portfolio* and add range of new investment styles product httpDOOwww. invesco.comOmediaOpressXreleasesO022!X20X0>.pdf ( broaden product offerings in line with strategy to provide a range of investment httdifferent pDOOwww. t aylorwimpestyles y.comO)P,o(!%# omeO1ews+ediaO<ress4eleasesO& h areandcashofferfor'ryant?roupplc ( In line with strategy to grow $% housing business cost savings and better margins synergies" - O'*,%$5$%i#& httpDOOwww. prudential.co.ukOprudential( plcOmediaOnewsreleasesOarchive022!O022!(2!(0#O ( expand business and presence in japan. Acquired excellent player in Papan * providing possibilities for important growth. httpDOOwww. independent.co.ukOnewsObusinessOnewsOprudential(in( pound!#8m(deal(to(buy(orico(of(japan(;2##...html ( mark entry to lucrative japan market - M$,6*# 1ot included

0/8O >0;#. 0/.O >0/.0 0/3O >#23.

Faing Investments Ftd (financial services* investment services 'romley <roperty Investments Ftd )it 5ntertainment plc F&5D T)5" (TQ production services Ariends Ivory , &ime plc A7A+" - asset management )alifax ?roup plc (Ainancial services

)yder Investments Ftd

'<T plc

Acquisition vehicle formed to undertake this particular deal - not included. 6elisted in 022. httpDOOwww.fool.co.ukOnewsO7ommentO0220Oc202#23b.htm ( move into the $& market - M$,6*# 1ot included

Fyrick 7orporation

0/;O >#2>0

Ariends <rovident Fife BfficeUs 4etail Investment Bperations 5quitable Fife Assurance &ocietyUs non(profit and unit(linked business*

0/>O >#!2.

httpDOOwww. hbosplc.comOmediaOpressreleasesOarticlesOhalifaxO022!( 20(2.(22.aspVsectionRhalifax They make the deal to gain cost savings as well as to increase their market share and increase their

0//O >#0>!

7ompass ?roup plc 7<?" foodservice company

operating assets and sales fund base - O'*,%$5$%i#& force +orrison +anagement httpDOOwww. iammorrison.comOcompass.htm ( keeps own brand* &pecialists Inc. same area of service httpDOOwww.allbusiness.comOcompany( activities( managementOcompany(structures( ownershipO32.0#;3(!.html ( perfect fit* no 0 in food service in 1A* continues as +orrison* subsidiary to 7? G*o4,$5-i% httpDOOwww. hydro.comOenOAbout()ydroOBur(historyO!//!((( 022.O0220(QA=((a(dream(comes(trueO ( complementing each other well - conditions in industry require 1) to grow* easiest through acquisitions - O'*,%$5$%i#& Ikke information* opk_ber udenfor kompetenceomr`der <roduct* vertical integration - ny salgskanal* bedre distributionskanal til kunderne. httpDOOquery.nytimes.comOgstOfullpage.htmlV resR/52!5365!A#!A/# 2A0.;.!72A/3;/7>'3# - create largest eurowide vending with American subsidiary ( G*o4,$5-i% httpDOOfindarticles.comOpOarticlesOmiXm#!/2OisX>X#.OaiX;!#03#/# ( A european complement to 1A vending business and a new offer in connection with other service offerings. httpDOOwww. innovation(group.comOBur)istory.aspx ( achieved accelerated geographic expansion into 5$* 1A* A$& - critical mass I? has global expansion strategy ( M$,6*# They buy a subsidiary 6elisted 0#O3(022. httpDOOwww. telegraph.co.ukOmoneyOmain.jhtmlVxmlROmoneyO022!O2 #O#!Ocnrac#!.xml ( provide synergies and immediately strengthen existing brands. httpDOOarchive.theargus.co.ukO022!O8O0O!>28>!.html ( acquisition is in line with ambition to become a full service group - P,o(!%#

#22O >##.#

#2! O >#83! #20 O >#388

1orsk )ydro A&A QA= Aluminium A? 1)W" energyOaluminium manufacturer 5:T <artners A' - <5 Feybold Bptics ?mb) investement company 7ompass ?roup plc &electa ?roup A? (7<?

#2# O >8#03

#28 O >8..> #2. O >83>>

Innovation ?roup plc* The -TI? Insurance software )ilton International )otels Ftd Fex &ervice plc (4A7 <F7 0220" +otoring service

)uon )oldings Ftd

)ilton ?roup plcUs !! $% )otels Auto =indscreens Ftd

#23 O >8;8/

+Zlnlycke )ealth 7are A'

Pohnson , PohnsonUs 1ot listed* private company surgical products business httpDOOwww. molnlycke.comOitem.aspVidR00#/8,langR0,siR3 acquisition of famous brand - P,o(!%#

#2; O >8;/! #2> O >8>38 #2/ O >.!!! #!2 O >.##8

I1Q545&% 45&5A47) ?4B$< FT6 Fiverpool Qictoria Ariendly &ociety Ftd &T5&&A FT6 Bdfjell A&A - B6A shipping company

7FI1T4IAF& 45&5A47) I17. 4oyal 1ational <ension Aund for 1urses* The +BB4AI5F6 ?4B$< FT6 =est 6elta

1ot included

1ot included 1ot listed* no information about the dealD possibly a subsidiary created to undertake the acquisition httpDOOwww. odfjelldrilling.comOmodulesOmoduleX!2/OpublisherXvie wXproduct.aspVi5ntityIdR3>3,midsRa!8/a!38a - deep sea delta * especially suitable to operate in hard weather improving efficiency - P,o(!%# &enere opk_bt af 'ritish Airways httpDOOwww. iccompanys.comOcdsOshowpage.aspVnodeidR/;8.! creating leading northern clothing company based on strong brands. httpDOOwww. iccompanys.comOcmsOresO#3>.8O3.8/8O;882!O>;#2>O Au sionsprospectX6%.pdf ( economies of scale throughout the value chain* gaining important brandsthat gives the possibility for growth in the -Oe P,o(!%# httpDOOwww.e nfuture iro.com nO<ressO<ressreleasesO022!OVlocationRhttp L #aL0fL0fse.yhp.waymaker.netL0firxmlL0frelxml.asp,wayidR00 ;;3 - buying the largest publisher in <oland* becoming market leader after the acquisition - O'*,%$5$%i#& <rivate company* not listed Bpk_b af leading business in %orea httpDOOwww.reckittbenckiser.comO4'TemplatesO+ediaFatest1ewsIt e m.aspxVpageidR!!0 ( Access to the growth market in %orea critical mass to 4'* possibility to sell key products in %orea* ?eographic fil(in acquisition - G*o4,$5-i% httpDOOwww. themanufacturer.comOukOdetail.htmlVcontentsXidR!022 They are both specialists in each area and together they can create synergies by cost cutting. httpDOOwww. thisismoney.co.ukOnewsOarticle.htmlV inXarticleXidR#333 >/,inXpageXidR0,inXaXsourceRThisL02isL02+oney ( 5uropean market leader. They complete the acquition due to a

#!! O >.8## #!0 O >..0.

<FI+&BFF FI15 FT6 7arli ?ry International A& - 4etail* I7 7ompanys I7"

'4ITI&) 45?IB1AF AI4 FI15& ?4B$< <F7 In=ear ?roup A&

#!# O >..;#

5niro A' - 514B" 6irectory services

<anorama <olska

#!8 O >..>#

4eckitt 'enckiser plc manufacturer of cleaning products

Bxy 7o Ftd

#!. O >.3/#

Autologic )oldings plc AF?" Automotive industry

Axial Fogistics Ftd

#!3 O >.>>.

5xel plc Fogistic management business

AJ 7oughlin ?roup

G*o4,$5-i% 6elisted dec 022. httpDOOwww. mhmonline.comOview&tory.aspVnI6R0>;! ( significant opportunity to strenghten presence in global automotive market httpDOOwww. logisticsonline.comO7ontentOnewsOarticle.aspV 'ucketRA rticle,6ocI6Rc0/32303(!>>0(!!d.(a;;2( 22d2b;3/8f#0,Q15T7BB%I5R1B ( even better service to existing and new customers - G*o4,$5-i% 1ot included

#!; O >./20

#!> O >./!2

?rand )otels 7umberland" Acquisition 7ompany Ftd '51AI5F6 ?45I? FT6 'A6" ( insurance broker

7umberland )otel

5= 'FA17) )BF6I1?&* I17.

#!/ O >328#

7?1$ plc 4enamed Aviva in 0220 AQ" Insurance group

+ebit 4t

httpDOOwww. benfieldgroup.comO14OrdonlyresO58#A7/5#(##>/( 838>(>5A!(>7;0A0;2/AA2O2O022!reportaccounts.pdf httpDOOwww. benfieldgroup.comO+ediaN7entreO<ressN4eleasesO'e nfi eldN?reigNcompletesNTenderNofferNforN5=N'lanchN&hares0.ht m ( enhance geographic reach* become world leading reinsurance intermediary httpDOOwww. insurancejournal.comOnewsOinternationalO022!O28O!;O! 0 >.;.htm ( 7omplementary in products and geographic scope - become worlds # largest* both highly innovative and %un regnskab fra 0228* aktiekurs fra 022! httpDOOwww. insurancejournal.comOnewsOinternationalO022!O2#O0!O!0 >20.htm ( expand in eastern europe* foothold in hungary( growth opportunities - M$,6*# httpDOOwww.aviva.comOindex.aspV <ageI6R88,categoryRcorporate, yearR022!,newsidR;/# ( <latform for further growth in eastern europe A4 022! - merged with existing Turkish activity to offer a full range of financial services* enhances their presence. O'*,%$5$%i#& 1ot listed httpDOOwww. mad.co.ukO+ainO1ewsO&ectorsOAinancial&ervicesOArtic l esOe.ebfdd>dae.80!fb!;a82/.c8c#a/e>O7redit(card(issuers( go(on( the(defensive.html - 7onsolidation within the business* only the

#02 O >303> #0! O >38..

)&'7 )oldings plc ( )&'A - banking services +'1A 5urope 'ank Ftd - private company* credit card

6emirbank TA&

Abbey 1ational plcUs retail credit card assets

#00 O >38;0 #0# O >38;.

#08 O >3.;0 #0. O >330>

Fogica plc - FB?* Fogica7+?* telecommunication s 6imension 6ata )oldings plc - 66T* IT infrastructure solutions 6ocument +anagement &ervices Ftd- software Qisma A&A supplier

)yder &ervices

biggest can obtain economies of scale ( O'*,%$5$%i#& 1ot included due to lack of information.

<remier &ystems Integrators FF7

httpDOOwww. mbendi.co.@aOaXsndmsgOnewsXview.aspV IR!;/#;,<?R #. ( technical skills that are necessary in the future - R&D 1o information about the deal - perhaps a merger where Astron continues +erger - renamed Qisma &oftware A&A 1ot listed httpDOOwww. visma.comOarchiveOvismaXcomOAnnual4eportsOAnnua l L024eportL02022!.pdf - merger with largest competitor* very strong position in 1orway and &weden - G*o4,$5-i% The range of software offered has become broader - pooling of interest merger. httpDOOwww. telenor.comOreportsO022!OpdfOreport022!.pdf 'ecoming the worlds largest player in mobile media technology ( M$,6*# KephyrD Through acquisition 4euters will achieve a strategic goal. ?ain a large base among institutional investors* gain leading trading and order routing technologies. httpDOOwww.about.reuters.comOhomeOmaterialsOinvestorrelationsOin ve storinformationOarchivedreportsandaccountsO022!X0.pdf ( enhance presence in $&* and expand product offerings. <rimarily to achieve penetration of $& market - M$,6*# httpDOOwww. britishland.comOhistory..htm ( 5xtension of retail property business - P,o(!%#

Astron ?roup Ftd* The &<7& ?roup A&A

#03 O >33>; #0; O >3;;0

Telenor A&A T5F" telecommunication s operator 4euters ?roup plc 4T4" - information company

7B+&AT mobile communications 'ridge Information &ystems Inc.

#0> O >3;>;

#0/ O >3>20 ##2 O >3>#;

'ritish Fand 7ompany plc* The 'F16" 4eal estate investorOdevelope r Fondon 5lectricity ?roup plc - electricity distribution &A?5 ?4B$< <F7* T)5 &?5" 'usiness management

00 )omebase Ftd do(it( yourself stores

7&= Investments plc

I1T54A7T 7B++5475 7B4<B4ATIB1

They merge with three other companies in 022# The year after this deal" and they are not listed* meaning we will not be able to analy@e the performance separately. h ttpDOOwww. inv estors.sage.c omOstrategyOgrowthXstrategyOacquisitio n XstrategyO Bverall growth strategyD 'roaden product <A* enter new markets

software

##! O >3>80

##0 O >3/;;

### O >;22/ ##8 O >;2!3

Fondon , 4egional <roperties Ftd (<roperty investment services 4eal 5state Bpportunities Ftd (4eal estate investment trust Fedge .3# Ftd (development and running of hotels 'ass plc - hotel operator

&trand <alace )otel

Permyn Investment <roperties plc

httpDOOwww.edfenergy.comOattachmentsOF5X?roupX4eview.pdf ( rationaleD 7ustomer relationship management 74+" ( P,o(!%# httpDOOwww. prnewswire.co.ukOcgiOnewsOreleaseVidR3.!#; create global force in software solutions - gain 74+ 1ot listed httpDOOwww. lrp.co.ukOukOinvestment.phpVsubsectionR$%L02Acquis itions - increase portfolio within one product area hotels" ( P,o(!%# 1ot included

)eritage )otels Ftd

1o information about this deal

<osthouse )otels Ftd

1ot listed Acquisition of hotel chain complement existing hotel business product httpDOOwww. mbplc.comOfilesOpdfO<osthouse28282!.pdf ( double no. of hotels in their portfolio in home market( P,o(!%# httpDOOnreionline.comOnewsOrealXestateXbassXacquiresXposthous eO ( Bverall aim of 'assD 5stablish )oliday inn as national brand httpDOOwww.caterersearch.comO7ompaniesO##//2Ocenter(parcs(uk( group(plc.html ( acquisition of holiday village - M$,6*# 1ot listed - the third largest chemical company. httpDOOwww. ineos.comOnewXitem.phpVidXpressR#! -acquire world market leader in phenolchemie - after the acquisitionD Ineos <henol is created - P,o(!%# newOimproved product line" httpDOOwww. icis.comOArticlesO022!O28O2/O!#3#;!Oanother(major( acquisition(for(ineos.html ( the industry is characteri@ed byD high raw materials costs and capacity increases last year. 6emand is expected to improve in the longer term. - Improved capacity 1ot included

##. O >;!8# ##3 O >;#02

7enter <arcs Ftd ()oliday village operator Ineos ?roup Ftd (chemicals manufacture r

Basis )oliday Qillage

6egussa A?Us <henolchemie unit

##; O >;8>0

?lobal <ower &olutions 7lyde 'ergemann <ower Ftd division (heating equipment manufacturer

##> O >;3>8 ##/ O >;;!; #82 O >;;.#

#8! O >;;3>

&venska handelsbankan &)'.A" - banking =estdeutsche Fandesbank ?iro@entrale =ilson 7onnolly )oldings plc - property and real estate developer 7itibank International plc (banking services

+idtbanken AO& %lZckner , 7o A?

httpDOOen.wikipedia.orgOwikiO)andelsbanken (becoming the . largest bank in 6% ( O'*,%$5$%i#& Two companies acquiring the target* not included Bne of the to being a bank 6elisted in Bctober 022# - =7 is acquired by Taylor =oodrow 1ot included

=ainhomes plc

<eopleUs 'ankUs $% credit card business

1ot listed* subsidiary of citigroup listet on 1W&e* but separate accounts httpDOOwww. prnewswire.comOcgi( binOstories.plVA77TR!28,&TB4WROwwwOstoryO28(23( 022!O222!83#/#!,56AT5R (&trengthen position in $% and strengthen position as leading credit card issuer. O'*,%$5$%i#& httpDOOwww. docs.cgi( iversion.comOVidR#A>T=.K?,pageR!2,si@eR0 They add some life assurance agreements and some portfolio to their asset base - O'*,%$5$%i#& 1ot included 1ot listed httpDOOwww.allbusiness.comOcompany(activities( managementOcompany(structures(ownershipO3238>2>( !.html ( gained a stronger platform in the $% - M$,6*# Fisted in 0220 after the acquisition of 5nodis" httpDOOwww.nobia.comO6ocumentsOengO4eportsOAnnualOannualXre po rtX022!.pdf (Increased presence in kitchen and bathroom interior and an extended geographic coverage - securing position as 5urope9s largest kitchen interior company. 5ntered the $% market +erger ( -M$,6*# renamed )'B& httpDOOwww. hbosplc.comOabouthbosO)istoryOhbosXhistory.asp ( becoming the . largest financial service company in $% O'*,%$5$%i#&

#80 O >;//0

#8# O >>!.. #88 O >>!/2

Aberdeen Asset +anagement plc A61" (asset management services )ilton group <F7 7apio $% plc healthcare company

?resham $nit Trust +anagement Ftd

&candic hotels A' 7ommunity )ospitals ?roup plc

#8. O >>0!#

1obia A' 1B'I" ( kitchen interior company

5nodisU 'uilding , 7onsumer <roducts 6ivision

#83 O >>88#

)alifax ?roup plc )'B&" - financial services

'ank of &cotland ?overnor , 7o of"

#8; O >>.23

7ater Allen Ftd (banking

Aleming <remier 'anking

#8> O >>;;;

#8/ O >>;>!

#.2 O >>>22 #.! O >>/!> #.0 O >/022

Bld +utual <F7 B+F" - asset management* insurance service Amvescap plc - F&5D AQK" investment manager Invesco 022; IQK"" 6' investments diamond mining A+< $%" Ainancial <lanning Ftd

Aidelity and ?uaranty Fife Insurance 7ompany

httpDOOwww. thisismoney.co.ukOnewsOarticle.htmlVinXarticleXidR#38; 0.,inXpageXidR0,inXaXsourceR ( 7ater allen subsidiary" is buying on behalf of Abbey 1ational. &upport and enhance existing business. 'uys a much larger player in the area O'*,%$5$%i#& httpDOOwww. telegraph.co.ukOmoneyOmain.jhtmlV xmlROmoneyO022!O2 .O!8Oabbsa.xml ( increase the share of wealthy customers by A<'. Bldacquiring +utual A4 022!D Increased presence within insurance services in the $& first entry to this market"( M$,6*# httpDOOwww. invesco.comOaboutOhistory.html[. &tart a division serving the wealthy individuals a growing business" ( P,o(!%# Also listed on F&5 1ot included They buy a subsidiary.

<ell 4udman , 7o Inc.

65 'eers 7onsolidated +ines Towry Faw plc

?yrus ?roup plc 4ichards medical device supplier ?W?"

6elisted Pan 022> httpDOOwww.gyrusgroup.comO<dfXAnnual4eportsOgyrusarX022!.pdf ( rationale for acquisitionD to become a direct player in markets where the can gain and hold leadership httpDOOwww. mercatorcapital.comOpressOpressrel(280;2!.html ( leading position* cross selling* cost savings. Technology* customer base and distribution to accelerate growth and position in $%O$& market - G*o4,$5-i% httpDOOwww.cadburyschweppes.comO51O+edia7entreO<ress4elea ses OlaXcaseraX082;2!.htm ( 1o 0 overall in spain* complementary products* rationaleD build up robust regional business. &trategic benefitsD regional distribution* strong presence in grocery. G*o4,$5-i% httpDOOwww. drestaurants imensiondatN a.c omO14Ordo nlyresOA'7/#/6A(A2A#( 8.55(>A66(>>A>5382.7#5O3/!0OAnnual4eport022!!.pdf ( ability to deliver a full solution offering both integration and connectivity requirements

#.# O >/0#0

7adbury &chweppes Fa 7asera &A plc 7'4W" &oftdrink manufacturer 6imension 6ata )oldings plc 66T* <roxicom Inc.

#.8 O >/#>.

#.. O >/#>.

#.3 O >/#/# #.; O >/80! #.> O >/8##

Fogica plc FB?" Telecommunication* IT consultancy Qodafone ?roup plc QB6" - mobile telecom services 6ow $% plc

7+? plc

+obile 7ommunications )oldings Ftd Ascot plc

httpDOOfindarticles.comOpOarticlesOmiXm25I1OisX022!X+ayX/OaiX;8# 3..0# Acquisition to enhance e(business integration model* first to market in the area - P,o(!%# Annual report Fogica7+? 0220 - +erger foced by pricing pressure and overcapacity. 'enefits of mergerD 7ross selling* lower operating costs* increased scale and scope* consolidation ( G*o4,$5-i% 1ot included

n.a. not listed 6atter af 6ow chemical company* listed I $&. httpDOOwww.wspgroup.comOuploadOdocumentsO<6AOfinancialL02rep ortsOannualXreportX022!.pdf Aim to grow in $% and internationally. Acquisition yields international reach and a strong presence in northern 5urope - M$,6*# Qertical integration* providing electricity to 1orwegian customers. 'uy electricity utility* Kephyr - P,o(!%# Two companies complete the acqusition together.

=&< ?roup plc =&)" Pacobson , =idmark A' 7onsultancy services

#./ O >/8#. #32 O >/>88 #3! O >/>;#

)afslund A&A )1.A" 5lectricity 7hurchill Insurance ?roup Ftd +? 4over )oldings Ftd ( manufacturer of motor vehicle

Qiken 5nerginett A& <rudential Assurance 7ompanyUs $% general insurance business Ftd <owertrain

1ot included due to lack of information

#30 O /22/!

4oyal 'ank of &cotland 5uro &ales Ainance plc ?roup plc* The 4'&" ( Ainancial services 5nterprise Inns plc 5TI" -pub operator =olseley plc =B&" )eating and plumbling equipment wholesaler

#3# O /22// #38 O /20/0

httpDOOwww. investors.rbs.comOinvestorXrelationsOannouncementsO4 el ease6etail.cfmV4eleaseI6R!.8/88 Aoothol in A4* ?er* 1F complementing the existing invoice business. &trategyD expand to new markets +organ ?renfell <rivate h ttp DOOwww.a nswfor ersgrowth .comOtopiM$,6*# cOenterprise(inns(plcVcatRbi@(fin <ub 5quityUs 8#/ pubs operator* buying pubs in $% ( G*o4,$5-i% =estburne ?roup Inc.* The httpDOOwww.wolseley.comOuploadsOannualreportsO=B&XA4X022!.p df (Important acquisition. 7omplement existing $& business* significant foothold in 7anada* later on improved through bolt on. Integration will lead to synergies* cost savings* and greater efficiencies ( M$,6*#

#3. O /2880

$<+(%ymmene Byj $<+.!Q" - paper manufacturer

? )aindlUsche <apierfabriken %?aA

#33 O /28.3 #3; O /28//

1orske &kogindustrier A&A 1&?" paper manufacturer Telia A' TF&1" Teliasonera telecom services 7entrica plc $nite ?roup plc $T?" -student accommodation service A< +_ller ?roup <rivate Investors

=alsum paper mill

httpDOOw#.upm( kymmene.comOupmOinternetOcmsOupmcms.nsfO ^allO00d2c80>e/a8f./ 2c00.3d0b22#e30>dV Bpen6ocument,qmRmenu*3*;*2,smtitleRAi nancialL024eports &trenghten product portfolio* complements eachother well* gain increase use recycling of 8 paper httpDOOwww. noof rsk eskog.cofibre mOAbsynergies. out(usO)istAcquisition ory.aspx <art of their 5uropean expansion - M$,6*#

&onera Byj

#3> O /2.8> #3/ O /2>2>

)umber <ower Ftd $nilodge )oldings $%" Ftd

#;2 O /2/!; #;! O /!#;> #;0 O /!.>>

=ijsmuller ?roep )olding 'Q 4amada Parvis Fondon

httpDOOwww. teliasonera.comOinvestorXrelationsOreportsOannualXrepor t O0220OinXenglish.pdf Feading telecom provider in &weden obtain leading position in Ainland and improved position in 'altic region leading 1ordic and 'altic operator ( M$,6*# 1ot included because more telecom the none company complete the deal together. httpDOOwww. unite( group.co.ukOdataO4eportsOAnnualL024eportL02022!.pdf &ignificant no of new beds becomes no. one provider. Able to accommodate larger client base ! W N 0(#W students. Increased capacity - P,o(!%# 1ot included because it is not a individual company. &ale and lease back of !! entities. Acquired by private investors. httpDOOwww.eofhr.orgOjobsO<ress(7?1$(strengthens(Australian( base(!;.#..htm &trengthen the current position in Australia* yielding a top position. <ossibilities of cost savings* and good match with current operations ( M$,6*# A4 022!D rebalance and improve 5uropean portfolio. Increase capacity - O'*,%$5$%i#& httpDOOproduction.investis.comOiprOnewsOpressOpr022!O022!(23(!!O ( grow regional business* complement existing assets* ?ive balance and improvement to their single asset position 1ot listed Industry review* overcapacity in retail sector in $% httpDOOwww. thisismoney.co.ukOnewsOarticle.htmlVinXarticleXidR#303 ;;,inXpageXidR0,inXaXsourceR ( ?ood fit with current portfolio*

7?1$ plc - rebranded Aortis Australia Ftd Aviva in 0220 AQ" insurance International <ower plc 4ugeley <ower &tation I<4" - electricity provider

#;# O /!303

#;8 O /!338

Aenwick Ftd ( retail

'entalls plc

#;. O /!3/!

?eorge =impey plc ( housebuilding ( mangler ticker <ohjola(WhtymY Byj Aarnell )olding Ftd 7hurchill Insurance ?roup Ftd 5nterprise Inns plc pub operator 5TI" 1oble )ouse Feisure Ftd - pub and restaurant operator Pohnson +atthey plc P+AT" 7hemicals company +isys plc +&W" software product and solutions provider +isys plc

Faing )omes Ftd

#;3 O /!;2# #;; O /!/82 #;> O /02!; #;/ O /0!!; #>2 O /0!08 #>! O /00;3 #>0 O /00>0 #># O /0#;2 #>8 O /08>;

7onventum Byj 'uck , )ickman Ftd A+< FtdUs $%(based general insurance business &cottish , 1ewcastle plcUs 8#0 pubs &cottish , 1ewcastle plcUs 0!8 pubs +econic plc

will keep its own name httpDOOfindarticles.comOpOarticlesOmiXqn8!.>OisX022!230/OaiXn!8#/ /.3; ( acquiring a small company* highly competitive industry - needs to consolidate to be in industry. ?eographically complementary - south of 5ngland and mid 5ngland O'*,%$5$%i#& 6elisted in june 022; Taylor =inpey plc" A4 0220D &trategic aimD ?row premium home business in $% in one step and with little risk. F) is strong in this area and has a strong brand. ( P,o(!%# 6elisted in june 0223 1ot included )olding company and thereby no income. 1ot included 1ot included

httpDOOwww. scottish( newcastle.comOsnplcOirOfininfoOtransactionsOretaildisposalsO022!(23( !>O <ub operator buying pubs in 5ngland - G*o4,$5-i% 1ot included

httpDOOwww. matthey.comOmediaOnewsO+econicX2;2!.html 5xisting products in new markets ( M$,6*# httpDOOfindarticles.comOpOarticlesOmiXqn8!.>OisX022!2302OaiXn!8#/ #..; 5nable +isys to expand its own IAA network and merge the two e( commerce units in that sector - P,o(!%# httpDOOwww. misys.comOpdfOinvestorsOreportsXaccountsOreportsXarchi veO022!Ofile0!!3X4eportXandXAinancialX&tatements.pdf &trengthen the product base - P,o(!%# 6elisted august 0223 httpDOOfindarticles.comOpOarticlesOmiXm25I1OisX022!XPuneX0;OaiX;. /.#;#0 ( vertical integration* secure fast penetration to market in offering both fabrication and delivery. httpDOOarchive.theboltonnews.co.ukO022!O3O03O3;!0!#.html ( bought

6'& +anagement plc

&unquest Information &ystems Inc. Bld" Aour &easons ?roup

$ltraframe plc roofing constructor ( mangler ticker

#>. O /0..2 #>3 O /0;!. #>; O /0;0;

5asynet ?roup plc network owner ( mangler ticker Invesco plc

Ipsaris Ftd

its american rival market leader in fabrication in 1A" httpDOOwww. telegraph.co.ukOmoneyOmain.jhtmlVxmlROmoneyO022!O2 3O0;Ocnult0;.xml ( break into 1A market ? M$,6*# 6elisted in Aebruary 0223 1ot included 1ot included due to lack of information.

?rand <acific Investment , 6evelopment 7o Ftd

&erco ?roup plc &4<" A5A Technology plcUs service company consulting division

#>> O /0>8>

5niro A' 514B" publications

6irektia Ftd

#>/ O /##>> #/2 O /8#.. #/! O /88#3

'< plc '<" oil exploration and production service 5urope Ftd 6ynegy &anoma=&BW Byj &=&!Q" media company

7airns Ftd

'? &torage Ftd Q1$ 1QUs consumer maga@ine publishing business

httpDOOwww. serco.comOImagesO<relims022!Annual4eviewand&um m aryAinancial&tatementXtcm#(!8!2.pdf &treghten the companys position in science - R&D httpDOOwww. serco.comOtextOmediaOpressreleasesO022!O22;X022!. asp h ttpDOOwww.eniro.comOuploadO7orporateOInvestor L024elationsOAina ncialL02reportsOAnnualL02report022!.pdf 6irektia is integrated with existing business in AI and 5niro becomes market leader fragmented industry acquisition* ( G*o4,$5-i% httpDOOwww.c hein mia e.highly deOnew sOeO#>!8O &trategic increase share in Tangguh* a long(term competitive supply source** securing their place in the market - O'*,%$5$%i#& 1ot included because it is owned by a $& based holding company httpDOOwww. pu@@lermedia.comOnews.aspV7ontR17.,1avR1.,Titl eR.,pageR2.,<4R23 1ew international dimension to the portfolio* strong presence on a number of new markets* market leader in . new markets. An important platform for future growth - M$,6*# httpDOOwww.compass( canada.comOhomeOmediaOresultsO022!!!#2Xfinancials.pdf 'ecomes worlds largest in the vending machines market ( G*o4,$5-i% A4 022!O20 - market* focussed on $& and became the worlds leading online betting company httpDOOwww. tax( news.comOarchiveOstoryO&portingbetXAcquiresX&ports'ookX=illX &t ayXInXAlderneyXxxxx83>..html - M$,6*# httpDOOfindarticles.comOpOarticlesOmiXm25I1OisX022!XPulyX#!OaiX;3

#/0 O /83;! #/# O /8/08

7ompass ?roup plc 7<?" Aood service

Qendepac Ftd

&portingbet.com $%" &ports'ook.com plc &'T" sportsbetting

#/8 O

1ordbanken A'

<ostgirot 'ank A'

/8/8> #/. O /.2!>

(ejet af nordea bank A' 16A" 1okia Byj 1B%!Q" ( Amber 1etworks telecommunications

>3!.2; &trengthen their position in the &wedish market - P,o(!%# httpDOOwww. nokia.comOA8!#3220VnewsidR>0>0.3 Acquired due to edge routers a mean to be able to shape the future mobile network architechture. Amber 1etworksU premiere products and technology* exceptional engineering talent and expertise in high availability multi(service routing will enhance 1okiaUs already strong leadership in mobile networks - R&D 6elisted in 022;* Taylor =impey Arom ?eorge =impey A4 022! - improve reach* more evenly base in the entire $% by improving base in south 5ngland ( M$,6*# httpDOOww;.investorrelations.co.ukOnestorOuploadsOreportsOannrep2!. pdf ( product* &ignificantly strenghten one of two product areas. 1ot included. -##5FGG #$#i%.(i4i#$""oo6.%o1G(i4i#$"%o,5o,$#*G%1 G/3G$ *# G CO MPASSHANNUALH/88/.5(f <rovide healthcare facilities to support one of the existing business unit ( P,o(!%# httpDOOwww. danisco.comOcmsOconnectOcorporateOmedia L02relationsO newsOarchiveO022!OaugustOinvestorX/#Xen.htm <rovides 6anisco with the missing platform in A$&Onew Kealand ( <art of 'ritish land company.

#/3 O /.!>#

#/; O /.##3 #/> O /..!. #// O /..88 822 O /3!.3 82! O /300. 820 O /300; 82# O /3#>.

?eorge =impey plc ( house building* mangler ticker 1estor )ealthcare ?roup plc 1&4" ( )elathcare services Innogy )oldings plc 7ompass ?roup plc 7<?" Aood service 6anisco AO& 67B"

Alfred +cAlpine )omes )oldings Ftd

)7+& Ftd )olding for )ealthcall" 1orthern 5lectric plcUs supply business 7rothall &ervices ?roup

?ermantown International Ftd Asda <roperty )oldings plc Tempus ?roup plc

'F 6avidson Ftd

=<< ?roup plc Already found" 56' 'usiness <artner A&A 56'A&A" &oftware developer" =5F <roperty Fimited <artnership Fondon , 4egional

Aellesdata A&

httpDOOwww.wpp.comO14OrdonlyresO035#80/A(A#8.(82'A(>>!6( A>3'!0A!2/;/O2O022!XarXwhole.pdf They improve their market coverage especially in the $&* Asia and Fatin America -tt M$,6*# h pDOOhugin.infoO!/8O4O!22#22!O!.#/83.pdf They create 8 business units where it(support to financial institutions is one unit - P,o(!%# 1on data at all.

828 O /;!!/ 82. O

'enchmark Persey" 1o! F< )ilton )otel <ark Fane

1ot enough data.

/;!./

823 O /;0/. 82; O /;#3/

<roperties Ftd 1ot listed" <roperty investment" Abbot ?roup plc A'?" 6rilling company" Allied 6omecq plc 6elisted" Alcoholic beverages" ?reene %ing plc ?1%" <ub operator" +ondi <ackaging $%" Ftd +oney?uru ?roup plc <ortman 'uilding &ociety Ftd 1ot listed" 'uilding society" +arlborough &tirling plc 6elisted* bought by Qertex in 022." Ainancial software developer" &veaskog A' 1ot listed" Aorest service and &awmill production" 7oloplast AO& 7BFB.'" +edical devise manufacture"

6eutsche Tiefbohr A?

httpDOOwww.abbotgroup.comOpdfOar022!.pdf They get the final piece of the pu@@le ?ermany" - O'*,%$5$%i#& httpDOOwww.allbusiness.comObanking(financeOfinancial(markets( investing(securitiesO3!;!;>3(!.html They add to their existing operations in ?ermany. They are bought by <ernod 4icard in 022. - M$,6*# httpDOOww;.investorrelations.co.ukOgreenekingOuploadsOpressO?%A4 X022!X0220.pdf They get a lot of new locations which was need to keep their position - G*o4,$5-i% 1ot enough data. 4egarding the deal.

%uemmerling ?mb)

82> O /;;#/ 82/ O />!2. 8!2 O />00; 8!! O />08/

Bld 5nglish Inns plc

6anisco <ack Ftd

&ynergy &eminars Ftd &un 'ank plc

Bnly financial data back to 0220 and the deal takes place in 022!. httpDOOwww. prnewswire.co.ukOcgiOnewsOreleaseVidR;#808 They expect &un 'ank to support their already existing financial services - O'*,%$5$%i#& httpDOOmoneyextra.uk(wire.comOcgi( binOarticlesO022.2#2>2;228;88/0P.html They expand their e( commerce software - P,o(!%#

8!0 O />.!.

5xchange A& ?roup plc

8!# O //#0>

Assi6omYn A'

httpDOOwww. sveaskog.seOuploadO<6AOAinancial L02InformationO&vea skogL02022!Xeng.pdf They just increase their portfolio ( P,o(!%#

8!8 O //#..

&&F International plcUs incontinence products unit

httpDOOwww.coloplast.comO57ompanyO7orp+edO)omepage.nsfO2Odd >d;>#fd/ea30a/c!0.3c;.220fb208O^AIF5OATT=#/1%OAnnualL0 24eportL022!(20L02?'.pdf They get a better presence at the 'ritish market - M$,6*#

8!. O //33;

TJ$ 5urope ?roup plc Already found"

8!3 O //;2> 8!; O //>30

'? ?roup plc Already found" =ihlborgs Aastigheter A' old" AA'?* listed in 022!" 4eal 5state management service" 1etwork 4ail Ftd Bbserver A' 7&1" +edia monitoring service" 7able , =ireless plc Already found" <osten A' Bwned by the ?overnment of &weden." <ost delivery" Aenner plc A514" Fifting belt manufacture " 7entrica plc Already found"

Amerada )ess 7orpUs $%( &ubsidiary of TJ$ company in $&* no financial data* and not listed based gas and electricity supply business 5nron Bil , ?as India Ftd httpDOOwww. bg(group.comOaboutOstrategy.htm[strat They always look for a good project and this one just happen to be located in India - O'*,%$5$%i#& <ostfastigheter A' httpDOOwww.fabege.seOuploadOpdfO022!O022!Xengelsk.pdf They increase portfolio ( P,o(!%#

8!> O //>38 8!/ O !222/0

4ailtrack plc 'aconUs Information Inc.

1ot enough data. httpDOOfeed.ne.cision.comOwpyfsO22O22O22O22O22O23O70O/AOwkr222!. pdf They get access to the American market ( M$,6*#

802 O !22!.2 80! O !220.;

5xodus 7ommunications Inc.Us assets 6&Q <arcel )olding AO&

According to Kephyr. They make the purchase because 5xodus fits well to 7able , =ireless9 strategy* product* and costumer base P,o(!%# h ttpDOOcws.huginonline.comO<O!#8!!0O<4O022!!2O>>3>#0X0X!0.ht m l They can now deliver the service of international distribution P,o(!%# httpDOOwww. inddist.comOarticleO7A0#/88!.html The market is under a lot of pressure and companies buy their suppliers to create good relationships - P,o(!%# &old back to Floyds in 022#.

800 O !22;/3

$nipoly 5nerka )oldings $% Ftd

80# O !2!2;# 808 O !2!!;8

?oldfish 7redit 7ard )olders 1ames

&eymour <ierce ?roup Antfactory )oldings Ftd plc 1ot listed" Asset +anagement"

According to Kephyr. They will increase their asset management. 7hanged name to Investment +anagement )oldings plc in 6ecember 022# - O'*,%$5$%i#&

80. O !2!!>8 803 O !2!#;> 80; O !2!#/> 80> O !2!8#> 80/ O !2!3#/ 8#2 O !2!/>.

4oyal 'ank of &cotland ?roup plc* The Already found" Allied 6omecq plc Already found" Fondon 5lectricity ?roup plc Already found" Topland ?roup plc

&cottish , 1ewcastle plcUs 8.3 leased pubs 6iageo plcUs +alibu liqueur

1ot included

The +alibu brand is sold again in 0220.

=est 'urton power station httpDOOwww.edfenergy.comOattachmentsOAccounts.pdf They gain another facility - O'*,%$5$%i#& 6iamond <roperty )oldings Ftd 08seven 1o documentation* but look like product because a real estate investment company buy a property developer. According to Kephyr. They increase their number of costumers in 5astern 5ngland due to this deal ( G*o4,$5-i% According to Kephyr. They buy a complementary activity to their own marine business - P,o(!%#

8#! O !2020;

8#0 O !2000. 8## O !20828 8#8 O !2082> 8#. O !20;.;

Fondon 5lectricity ?roup plc Already found" =YrtsilY Byj Abp =4T'Q" +arine propulsion engine manufacture" Qosper Thornycroft )oldings plc QT?" 6efense* Technical and service support contractor." WTF $tilities $%" Ftd +?4 7apital Ftd

Pohn 7rane(Fips

+erlin 7ommunications ?roup Ftd

According to Kephyr. They buy a new support unit with relations to radio and satellite maintenance support* and they get new opportunities with respect to products and markets - R&D

=essex =ater Ftd 4over Ainancial &ervices ?'" Ftd 5ncore <aper 7ompany Inc %atsouris Aresh Aoods" Ftd

1on data available. 1ot enough financial data available and no webpage. 6oes not exist anymore. httpDOOwww. sca.comOdocumentsOenOAnnualX4eportsOAnnualX4eport X022!Xen.pdf They increase their market share to !/L and the two product mixes fits good together ( O'*,%$5$%i#& According to Kephyr. They can increase the chilled food product line due to this deal - P,o(!%#

&venska 7ellulosa A' Already found" 'akkavZr ?roup )A 'A%%" Aood producer"

8#3 O !20>22 8#; O !20/;0 8#> O !2#20# 8#/ O !2##.0 882 O !2#8;;

&venska 7ellulosa A' Already found" <ress Acquisitions Ftd <ubmaster ?roup Ftd

7artoinvest &pA

Telegraph ?roup Ftd Inn <artnership Ftd

'ritish ?as Trading Ftd 5nron 6irect Ftd Assa Abloy A' Already found" Tesa )ardware

88! O !2#3#; 880 O !2#;;/ 88# O !2#;>3

Faunchchange Ftd

Qiridor Instrumentation Ftd Airst 1ational Qehicle )oldings Ftd A$(&ystem A'

httpDOOwww. sca.comOdocumentsOenOAnnualX4eportsOAnnualX4eport X0220Xen.pdf They gain 0;L of the 5uropean market due to this deal - O'*,%$5$%i#& They act like an advisor to the management of the newspapers in the group. - 1ot included h ttpDOOnew s.bb c.co.ukO!OhiOenglandO!;!8002.stm They can add !0.2 new pubs to their portfolio and they become more visible in the &outh 5astopart of 5ngland - G*o4,$5-i% According Kephyr. =ith the deal they double their gas supply services - O'*,%$5$%i#& httpDOOwww.assaabloy.comO?lobalOInvestorXrelationsOAnnual L02rep ortO0222OA40222engX#X7ountrysections.pdf They want to get a better position within the &panish market* and additionally they get a unconsolidated lock system used in a lot of hotels - M$,6*# Bnly data available.

888 O !2#//.

Floyds T&' ?roup plc FFBW" 'anking &ervice" Teleca A' T5F7.'" &oftware solutions to companies" +oss <harmacy

httpDOOwww. investorrelations.lloydstsb.comOmediaOpdfXirmcOirO0220O 0220XFT&'X?roupX4,A.pdf They make the deal to keep their position as market leader - O'*,%$5$%i#& httpDOOwww. teleca.seOmedia !;!*!2##"OAnnualX4eportX0220.pdf They gain a new technology which they use to sell more to their costumers - R&D They are merged with Alliance in 022. and only the financial statements from that group are to be found.

&mith , Taylor <harmacies FtdUs ./ pharmacies 7rown 7ork , &eal 7ompany IncUs beauty pumps business 6udley Taylor )oldingsUs ./ pharmacies Qinings Industries

88. O !282!.

4exam plc Already found"

According to Kephyr. This deal supported their wish about building a stronger position within the American market - P,o(!%#

883 O !282.. 88; O !280;.

Alliance $nichem plc Already found" %emira Byj Already found"

According to Kephyr. They make a vertical merger* they are a retailer and buy a chemist - P,o(!%# httpDOOwww. kemira.comO?roupO5nglishO?eneralO%emiraNinNbriefOQi sionXstrategyOAcquisitionsO!;!0022!.htm They want to become a

88> O !28#;>

88/ O !28/08

&kandia Insurance 7o.* Fynx ?roup plc Ftd 1ot listed" Ainancial &ervice" I+B 7ar =ash ?roup Toman )andels( und Ftd 'eteiligungsgesellscha ft mb) 6en norske 'ank A&A &kandia Asset +anagement 5nterprice Bil plc. &canfil Byj

significant player in the American market ( M$,6*# httpDOOfindarticles.comOpOarticlesOmiXqn8!.>OisX022!!002OaiXn!88# .2>. They now can help the costumers to setup the software which support their financial services - Con'*,4*n%* 1ot enough financial data.

8.2 O !2.!8; 8.! O !2.08. 8.0 O !2.8;0

=as bought in 0228 and the deal took place in 0220.

&hell 4esources <lc =ecan 5lectronics Byj &7A!Q"( telecom

1ot included* acquisition vehicle According to KephyrD =57A1D aim to create world class vertically integrated supplier -##5FGG:::. %$nfi".fiG#i*(o##**#GS%$nfi"HAnn!$"/88/H*.5( f ( P,o(!%#* obtain vertical integration 1ot included

8.# O !2..;0 8.8 O !2.;>> 8.. O !23.8;

6r Allan +c7lay

Well ltd. )ydro Aluminium A& ( producer of aluminium ?5 7apital 'ank Ftd. credit institution services 7entrica plc 71A" (energy provider Jstrata plc JTA" ( mining $A? $% )oldings Fdt.

?alen )oldings plc9s clinical trial services division +cFeod$&A Inc9s directories business Technal &A

1ot listed and no financial data - 1ot included. 1ot listed - private company httpDOOwww. hydro.comOuploadO6ocumentsO4eportsOAnnual L02repor tsOhydroXannualXreportX0220Xen.pdf Improve market position in a no. of countries ( O'*,%$5$%i#& 1ot listed and no financial data - 1ot included.

8.3 O !23.;8 8.; O !2332! 8.> O !2;!;! 8./ O

Time 4etail Ainance Ftd.

5nbridge &ervices Inc

?lencore International Ag9s Autralian and &outh African coal business &ytner ?roup plc

httpDOOwww.centrica.co.ukOindex.aspVpageidR#/,newsidR!0.,type R!;,yearRarchive +ore than double customer base in 7anada ( O'*,%$5$%i#& httpDOOwww.answers.comOtopicOxstrata(plcVcatRbi@(fin =ant to become a world leader in mining* buying ?I9s interest in A$ and KA expands reach ( O'*,%$5$%i#& 1ot listed and no financial data* mother company is listed in $& -

!2;03/ 832 O !2;##3

<rovident Ainancial plc. Wes 7ar 7redit ltd. <A?" insurance service

83! O !2;#3! 830 O !2>!0!

'B7 5dwards

83# O !2>!8#

838 O!2>!33 83. O !2>032

&7BTTI&) , 15=7A&TF5 <F7 &7T1" - beer producer &+IT) , 15<)5= <F7 &1" medical device manufacturer &un?ard A.& Ftd. information availability services Fondon 7learing )ouse Ftd. -clering house services financial services"

&eiko Instruments Inc9s turbomolecular pump business )A4T=AFF A'< BWP

1ot included. KephyrD Insurance buying car finance* unique business model and similar customer base. httpDOOinvestmentideas.co.ukO022.O2#O!;Oprovident(financialO Acquire a car dealership that sells used cars and offer financing ( Con'*,4*n%* Fack financial data and not listed - 1ot included.

httpDOOwww. investis.comOsnplcOdownloadsO0220(20( !8.ppt[8>8*8*&,1 KephyrD build strong 5uropean position* this acquisition adds a strong position in Ainland ( M$,6*# httpDOOglobal.smith( nephew.comOcpsOrdeOxbcrOsmithnephewlsXmasterOA420.pdf0/.p df KephyrD Bratec brings advanced technologies to &,1 and helps maintain strong growth momentum - R&D httpDOOwww.allbusiness.comOcompany(activities( managementOcompany(structures(ownershipO./#;.#2(!.html Access to facilities* platforms* network capacity ( P,o(!%# httpDOOwww.euronext.comOnewsOpressXreleaseOpressXrelease(!;#!( 51.htmlVdocidR./;>0 httpDOOwww. thebanker.comOnewsOfullstory.phpOaidO#>>O4outeXfinall y XopenXforXF7)(7learnetXmerger.html httpDOOwww.euronext.comOficO222O2!2O>/2O!2>/2>.pdf Bffer the customer more choices and better terms of trading - a requirement in connection top creation of httpDOOww;.inv est orrelations .co.the ukOg reenekin gOeuronext newsOsho(w<ress.jsp Vr efR>;,catR0 4oll up of smaller operator in oxford area G*o4,$5-i% Kephyr* strengthen market position on home market ( G*o4,$5-i%. 6elistet june 0223 and acquired Aabege". KephyrD in add strength scope by to existing business httpDOOwww.contractjournal.comOArticlesO0220O28O!/O##2#;Oalfred( mcalpine(snaps(up(stiell.html ( P,o(!%# KephyrD consistent with our strategy of acquiring assets which can be successfully integrated into our existing business. 6iversity of

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Amplion Aastighets A' &tiell Ftd

&cottish , &outhern 5nergy plc &&5" -

Aerrybridge power station

energy services 8;2 O !2//20 I7A< plc IA<" stockbroking services Airst 'rokers &ecurities Inc.

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Airst Aqua Ftd. ?4B$< 8 AAF7% AO& Pohnston <ress plc. P<4" media group

&outhern =ater plc. =A7%51)$T 7B4<B4ATIB1* T)5 4egional Independent +edia )oldings ltd.

our generation portfolio* particularly in the mid(merit sector* and will help us meet peak demand for electricity ( O'*,%$5$%i#& Ara orbis* kun regnskab fra 022. Ara @ephyrD +r +ichael &pencer* 75B of I7A< plc said bAirst 'rokers has a very strong market position in $.&. corporate bonds which compliments our leading position in non(corporate bonds and our electronic broking capability ( O'*,%$5$%i#& Acquisition vehicle - created especially to carry out this acquisition. <ossibility to sell out right after 1ot included httpDOOwww. johnstonpress.co.ukOjpplcOaboutusOhistoryO 4I+) raises Pohnston9s portfolio to 088 titles* many of them market leaders* cementing its position as a leading $% regional publisher." httpDOOwww. johnstonpress.co.ukOjpplcOmediacentreOpressreleasesOi nd ex.jspVrefR82 - O'*,%$5$%i#& httpDOOwww. bpb.comOmain.aspVpageR8!# They will get !3L of the American market and be able to decrease manufacturing costs as well as become the number one manufacturer of plasterboard ceilings ( O'*,%$5$%i#& KephyrD &A'+iller - no. 0 globally* positioning well to handle ongoing consolidation in global industry. gain significant access to the $& market httpDOOwww. laprensa(sandiego.orgOarchieveOjune!8(20Omiller.htm M$,6*# Acquisition vehicle of $& based company. 1o information httpDOOwww.cadburyschweppes.comO51OAbout$sO)eritageOAcquisiti ons6isposalsO (7reating the worlds largest confectionary business - and gained access to new markets esp. Fatin America" httpDOOwww. victoryseeds.comOcandystoreOconfectionersOprOprXcadb ur yXadamsX!0!;20.htm (result of acquisitionD a unique portfolio* new strong brands - P,o(!%# ITQ is created in the merger of ?ranada and carlton. +angler regnskab fra 022; httpDOOwww. itvplc.comOitvOmergerOreasonsO ( to be able to compete in the $% market ( G*o4,$5-i%

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Instrumentarium Byj <raedia Investments Ftd. ?annett $% Fdt. publishing PBT Automation ?roup Byj - 5'?!Q" renamed electrobit group after merger - automation manufacturer 5nterprice Inns plc 5TI" - pub operator FB+'A46 1B4T) 751T4AF <F7 ( banking and asset finance =BF&5F5W <F7 =B&" - )eating and plumbling equipment wholesaler 751T4I7A <F7 71A" (energy provider

&pacelabs medical Inc. 'eaucette <roperty <artnership &+? <ublishing Fdt. 5letrobit By

6&? A4 0220D httpDOOwww.dsgplc.co.ukOinvestorsOreportandaccountsOV filterType!Rfiscal6ate,yearR022# - expanding operations globally. &ervice in 3 countries* marketleader in &candinavia. +arket 6elistet in Panuary 0228 Bpk_bt af ?5 healthcare i 022# 'ought by a consortium - not included httpDOOwww.gannett.comOnewsOpressreleaseO0220Opr!00#20.htm Airst entry into &cotland M$,6*# 5lectrobit group A4( 0220D 7ombine wireless telecommunication specialist with automation expert to create a globally unique production service concept ( Con'*,4*n%*

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Faurel <ub ?roup Ftd.

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httpDOOwww.referenceforbusiness.comOhistory0O>!OThe(Faurel(<ub( 7ompany(Fimited.html 'uying !/22 tenated pubs in 5ngland G*o4,$5-i% &ubsidiary of 4'& acquire a car dealer* not included

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KephyrD complement existing business in $& httpDOOwww. secinfo.comOd!0crf.##m.d.htm ( product* acquisitions to enhance existing product portfolio ( P,o(!%# httpDOOwww.centrica.co.ukOindex.aspVpageidR#/,newsidR!0!,type R!;,yearR0220 ( increase presence in texas area httpDOOtdworld.comOnewsOpowerXcentricaXcompletesXpurchaseO ( # largest retail energy provider in texas - important milestone ( O'*,%$5$%i#& httpDOOwww.cadburyschweppes.comO51OInvestor7entreO<ress4elea s esO0220O<ress4elease7ontent.htmVI6RL;b0AA;8A>;(#A2.( 8AA/( '2>;(>2#;A;A!2';;L;d 5xtents participation in chewing gum market* fast growing market* obtain a no 0 position in chewing gum market ( P,o(!%#

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Fattice group plc

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httpDOOwww. ofgem.gov.ukO<agesO+oreInformation.aspxVdocidR8;, referRAboutL02usOenforcementOmergersOoft,orderR#a 'ritish 5nergy ( <roposed +erger of 1ational ?rid ?roup plc and Fattice ?roup plc to create 1ational ?rid Transco plc ( O'*,%$5$%i#& 5volution group plc* is a holding company for different financial services companys. Acquisition of beeson ?regory establishes evolution beeson ?regory focusing exclusively on investment Arom A40220Dbanking. 1ot included httpDOOwww.assaabloy.comO?lobalOInvestorXrelationsOAnnual L02rep ortO0220OA40220eng.pdf Automatic product and systems have so far only had a limited part of AA portfolio* but fits well with ambition to offer the this bestmerger securityOlock systems ( P,o(!%# 4enamed I&I& after 4enamed A,7 after I&I& merger with A,7 asset management in 0228. 1ot included 1ot included

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httpDOOir.electrolux.comOfilesO5lectroluxXannualreport0220.pdf &trenghten the existing position. httpDOOfindarticles.comOpOarticlesOmiXm25I1OisX0220X+ayX0OaiX>. 8 2.3/0 ( product* combining 6'I with existing operations created the world leader in P,o(!%# httpDOOwww.a ngloam erican .cdiamond o.ukOartictools leOVaf(w XsourceXkeyR.'2652 6>(650A(8.3A(/A7'( #26';!688!>>,xslXmenuXparentROnewsandmediaOpressrelease sOa rchive0220O =ill complement existing business yield synergies ( O'*,%$5$%i#& httpDOOwww.angloamerican.co.ukOarticleOV afwXsourceXkeyR#;8//A! A(33>>(8A>3(A87>( /.2735!7>00!,xslXmenuXparentROnewsandmediaOpressrelease sOar chive0220O 6isputada* is a major strategic strengthening of portfolio. It offers attractive exploration and growth prospects* synergies with our existing operations and reinforces our commitment to 7hile and the region.

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KephyrD seeks expansion in new flights and new routes. httpDOOwww.easyjet.comOenOaboutO022!(0220AullWear4esults.pdf ( productOmarket. Fittle overlap in destinations. The combining of easyjet and go fly has yield an improved market presence ( P,o(!%# KephyrD 5nhance position in $& httpDOOwww#.sandvik.comOpdfOannualreportsOenglish0220.pdf ( strong and complementary brand - $& leader. httpDOOwww. sandvik.seOsandvikO22!2OinternetOse2!//3.nsfO<ress L02 4eleasesL02=ebO#!0!;!!5A.A>A/667!0.3'67220880>6 Bperate Qalenite as a separate company within its &andvik Tooling business area. Qalenite will retain its own identity and continue to operate its own 4,6* manufacturing* marketing and distribution channels ( G*o4,$5-i% httpDOOwww.allbusiness.comOmarketing(advertisingO8!032..(!.html ( contribute to strategic goal - marketing services and expanion to Asia. Acquisition of competitor. - strengthen Asia position* healthcare marketing and direct marketing httpDOObusiness.timesonline.co.ukOtolObusinessOarticle!!8##3#.ec e ( P,o(!%# 6elisted !#O0(0223* acquired by <ersimmon plc. httpDOOarchive.thisiswiltshire.co.ukO0220O.O02O!>;>3;.html Increased capacitet httpDOOwww. building.co.ukOstory.aspVstory7odeR!2!>.;; Farge consolidation in industry creating large players httpDOOwww.citywire.co.ukOadviserO(OnewsOmarket(and( sharesOcontent.aspxVI6R0#>!/>,<ageR0 7ustomer base is complementary ( possibility of cost savings ( G*o4,$5-i% They are sold again shortly after this merger. 1ot included ( 1o available data regarding the deal and the acquirer is part of a large global group. Fisted According to KephyrD They get a new dimension of their portfolio ( P,o(!%# 1ot included - 1o information about this deal.

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6elisted in 022. httpDOOwww. hitentertainment.comOcorptimeline.htmlD They get new brands and programs - P,o(!%#

Q54<A7%$1? N 6I&<FAW &TA'541A7% P4 <A4T154 ?+') , 7B. %? ?=4 ?4B$< <F7

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1ot listed httpDOOwww. sca.comOdocumentsOenOAnnualX4eportsOAnnualX4eport X0220Xen.pdf D They have a special advanced printing method which strengthened &venska 7ellulosa9s positions ( P,o(!%# 1ot included - completion date in 022.

)A1&B1 <F7 7)B7TA= I17. 7oncrete manufacture" )W$16AI +BTB4 7B.* FT6 PB)1&B1 +ATT)5W <F7 7BFFI1& &T5=A4T )BF6I1?& <F7 <5A7B7% ?4B$< <F7* T)5 7lothing retailer" 1ATIB1AF 5J<45&& ?4B$< <F7 T4W? I 6A1+A4% &+'A &Q5A&%B? A'

)yundai +erchant +arine 7o9s Automobile Transport Bperation &W15TIJ FT6 Fisted According to KephyrD They improve one of their product lines P,o(!%# T$FF5TT , TB%WB 1ot included ( 6emerged in 0223. FI'54TW <F7 'B1 +A47)5 ?4B$< 6elisted in 0223 FT6 According to KephyrD They add a new and higher quality brand to their portfolio - P,o(!%# &TB7% Fisted T4A1&<B4TATIB1 According to KephyrD They want to improve their market FT6 position within the 1orth American 'us market - M$,6*# T4W? AB4&I%4I1? AO& 1ot included ( 1ot enough available data. %B4&1A& &A=+IFF 1ot listed httpDOOwww. sveaskog.seOuploadO<6AOAinancialL02InformationOyear (end(report(0220.pdf D They acquire more forest in &weden G*o4,$5-i% 1ot listed

1ot listed According to KephyrD They get a stronger position in the $& and their products fit well together - O'*,%$5$%i#& 1ot included ( +ore than one acquirer.

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httpDOOwww( /#..ibm.comOservicesOukObcsOpdfOlcrXcaseXstudy.pdf D They want to create high speed trains from &t. <ancras - P,o(!%#

1orske &kogindustrier A&A AQ5&TA<BFA4IT BWP A'<

1ot included ( +ore than one aquirer. Fisted httpDOOwww. outokumpu.comOfilesO?roupOInvestorO6ocumentsOA4Xe ngX022!.pdf D The market is mature and they have to growth. <roduct* they transform the company from being a capital intensive business to become a knowledge based one where Avesta<olarit is a subsidiary in one of the business units O'*,%$5$%i#& 6elisted According to KephyrD They increase their asset base O'*,%$5$%i#& Fisted According to KephyrD They expand their concept to <oland as part of their strategy of becoming the leading hypermarket owner in 5urope - M$,6*# 1ot listed According to KephyrD They now also can offer glass* frame and locks emergency services - P,o(!%# Fisted According to KephyrD They get J(ray that can complement their existing products and create new markets - P,o(!%# 1ot included - 1o information about this deal.

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1ot listed According to KephyrD They increase their business in relation to credit cards - P,o(!%# Fisted According to KephyrD 1ow they can store their gas better and thereby explore the option to extract more at the time P,o(!%#

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1ot listed httpDOOwww. mbiinternational.comOmbi(international(news( pressOarticle.aspxVtRTheN?randN)otelN=ienN( NAN)istoricNAcquisition They buy the most luxurious hotel in 5urope - P,o(!%# 1ot listed httpDOOwww.fshc.co.ukOaboutusOnews6etail.aspV;!(Aour( &easons( )ealth(7are(launches(offer(for(Bmega(=orldwide*( Inc(,( <rincipal()ealthcare(Ainance(Fimited D They increase the number of beds they manage within the $% market - P,o(!%# 1ot listed - subsidiary of 7entrica httpDOOwww.centrica.co.ukOindex.aspVpageidR#/,newsidR!83,type R!;,yearRarchive D They expand the business unit regarding electricity - O'*,%$5$%i#& Fisted According to KephyrD They add electronic trading to their voice trading service - P,o(!%# 1ot included - 1o information about the deal.

1ot included - Acquisition outside core business of the bank ( The bank buys a company which owns property in Italy. 1ot included ( It is a subsidiary9s subsidiary.

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httpDOOwww. teliasonera.comOinvestorXrelationsO reportsOannualXreportO0228OinXenglish.pdf D They make the deal to merge the two brands Telia and Brange and thereby gain some synergies. They also become the third largest supplier in the 6anish market - O'*,%$5$%i#& 1ot included - 1o available data.

6elisted in 022;

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<F7 <ower supplier" TAQ5TA I1Q5&T+51T& FT6 1B4&% )W64B A&A Aluminium +anufacture" =BF&5F5W 751T54& FT6 Timber company" &A& ?4B$< Airline operator"

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According to KephyrD They want to increase their capacity in &outhern 5ngland - G*o4,$5-i% 1ot included ( 1o financial data available Fisted httpDOOwww. hydro.comOenO<ress( roomO1ewsOArchiveO022!OBctoberO!32.;O D They get access to the Arench* Italian and &panish market - M$,6*# Fisted httpDOOwww.wolseley.co.ukOcorpOnewsOarchiveOnews02.html D They get more sales locations in the $% market - G*o4,$5-i% Fisted httpDOOwww. sasgroup.netO&A&?4B$<XI4O7+&Aoreign7ontentO022 !eng.pdf D They increases their share of the 1orwegian market M$,6*# 1ot included - acquisition outside core business ( The bank buys hotels.

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Fisted httpDOOwww.ramirent.comOenglishOwwwOatt.phpVtypeR0,idR08 D They enter the 1orwegian market by acquiring the market leader in 1orway - M$,6*# 1ot included ( 1ot enough data and the webpage does not exist.

)A++54&B1 <F7 ?4A1T7)5&T54 4eal 5state developer" )BF6I1?& <F7 &5' T4W?? FIQ )BF6I1? A' Insurance" 6AI4W 745&T ?4B$< <F7 7B(B<54ATIQ5 7B6A1 FIQ , <51&IB1

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Fisted According to KephyrD They make the deal to increase their retail parks - P,o(!%# 1ot listed httpDOOcws.huginonline.comO&O!02>O<4O022823O/.20//X..html D They want to increase their presence in the 1ordic Area O'*,%$5$%i#& Fisted httpDOOwww. dairycrest.co.ukOourbusinessOourhistory.asp D They get a lot of new brands - P,o(!%# 1ot listed

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B<54ATIB1& A16 '$&I15&&5& I1+A4&AT Q51T$45& <F7 &+IT)& ?4B$< <F7 )5I+A11 &W&T5+& 6efense and security" ?+') A+54(W)TW+c BWP &porting equipment" F= I1Q5&T+51T& FT6 'BB%)A+ T57)1BFB?W <F7 Bptical instrument manufacture" <457B4 I17.

According to KephyrD They add the acquired retail stores to their portfolio - P,o(!%# 1ot included - 1o separate accounts before and after the deal Fisted httpDOOwww. smithsdetection.comOengOhistoryXheimann.php D They added products to the portfolio - P,o(!%# Fisted According to KephyrD They add products to their existing portfolio P,o(!%# 1ot included ( 1ot enough financial data available. 6elisted httpDOOwww. bookham.comOindex.cfmVnavIdR!0 DThey expanded their portfolio - P,o(!%#

FITTF5=BB6& <F7 1B4T5F 15T=B4%& 7B4<B4ATIB1U& B<TI7AF T4A1&+ITT54 A16 4575IQ54 A16 B<TI7AF A+<FIAI54 '$&I15&&5& %I<A %ITF5 <AKA4FA+A TI7A45T Q5 ?I6A &A1AWI A& 1I51'$4?54 ?FA& ?+') ?1I )BF6I1?& FT6

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Fisted According to KephyrD They buy hypermarkets in Turkey as part of their long term international growth - O'*,%$5$%i#& Fisted httpDOOwww.rexam.comOfilesOpdfOannualO022#O0220review.pdf D They get a significant position in the ?erman glas market ( O'*,%$5$%i#& Fisted httpDOOwww. mangroupplc.comOinvestorOAnnual4eportsO022#.pdf D They get the critical mass in relation to equity derivatives and become a market leader globally in respect to brokerage service ( O'*,%$5$%i#& Fisted httpDOOww;.investorrelations.co.ukOgreenekingOuploadsOpressO<res sre leasefinal2>2;28.pdf D They wanted to add more locations to their real estate base ( G*o4,$5-i% 1ot listed httpDOOwww.fleetnews.co.ukOfleetvanOstoryOVnI6R0;;;/ D The only way to grow is through acquisitions because that is the only way the

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vehicle leasing" <B=54?51 <F7 4enamed 0228"D 5.B1" <ower and electricity" 7)5F&5A FT6 A+Q5&7A< <F7 4enamedD Invesco Investment vechicle" T5&7B <F7 4etail"

TJ$ 5$4B<5U& 754TAI1 $% A&&5T&

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market add new vehicles to the fleet - O'*,%$5$%i#& 6elisted in 022# httpDOOwww. prnewswire.co.ukOcgiOnewsOreleaseVidR/0>2; D They become market leader within the 'ritish electricity supply maket - O'*,%$5$%i#& 1ot included - 1o financial data available. httpDOOwww. invesco.comOinvestOreportsOannrptX2#.pdf D They add the asset management to their existing business ( O'*,%$5$%i#& Fisted httpDOOwww. tescocorporate.comOimagesO4eportX2#X2.pdf D They increases their market share from !L to .L in relation to convenience products - M$,6*# 1ot included - resold in 0228. Fisted httpDOOwww.cpwplc.comOphoenix.@htmlVcR!0#/38,pRirol( newsArticle,I6R/./3>3,highlightR D They gain fixed line services which they can add to their wireless business ( P,o(!%# Fisted According to KephyrD They get better options to decrease fluctuations in demand and support their storage costumers - P,o(!%# 1ot included ( There are . acquirers. Fisted httpDOOwww. hsbc.comO!O0Oabout(hsbcOgroup(history D They add !#22 branches in 8. states to their presence in the $& ( M$,6*# Fisted According to KephyrD They increases their market coverage within the $% ( G*o4,$5-i%

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7)A4T=5FF FA16 <F7 )B$&5)BF6 I1T541ATIB1AF I17. QI7TB4IA 751T45 <A4T154&)I<* T)5

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1ot included ( 1ot enough financial data. 1ot included ( 1o data available.

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T45FF5'B4? A' <rovider of polymer solutions" ?$& <F7 4etail"

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) F$16'57% AO& <harmaceutical" 7B+<$TA751T54 <F7 IT consultancy" 64$+=5FF FT6 A&&B7IAT56 '4ITI&) ABB6& <F7 Aood and ingredients manufacture" ?roup of Institutional Investors =I17A1TB1 <F7 Fogistic services"

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Fisted httpDOOwww. highbeam.comOdocO!?!(!8>;!#/8.html og httpDOOwww. trelleborg.comOenOInvestorsO4eportsOAnnual(4eportsO D The market can only grow through mergers and acquisitions become marketleader through this deal - O'*,%$5$%i#& 1ot listed httpDOOwww. homeretailgroup.comOhomeOaboutOhistoryO D They are in retail and get economy of scale as well as additional costumer segments - O'*,%$5$%i#& Fisted httpDOOwww. xstrata.comOpublicationsOacquisitionOmim <ress releaseD they make the deal to get into the Australian market and to get a stronger position within thermal coal and @inc O'*,%$5$%i#& Fisted httpDOOwww. lundbeck.comOaboutusOhistoryOmilestonesOdefault.asp D They open a new department in the $& - R&D Fisted According to KephyrD The industry is not mature and they want to increase their service department as well as build up a leading position in 5urope regarding IT consultancy services ( G*o4,$5-i% 1ot included ( 1ot enough available data. Fisted httpDOOwww.abf.co.ukOinvestorsOreports.asp[0220 4eport 0220D The market only grow through mergers and acquisitions and they buy the company to get additional brands to their portfolio and create a better marketposition ( O'*,%$5$%i#& 1ot included ?roup of investors Fisted httpDOOwww.wincanton.co.ukOdefault.aspV &ectionR&&,7at0R&7&, 7at#RTA6 and according to KephyrD They gain market share in the $% and increases the transport services ( M$,6*# 1ot included ( They merge with two other transport companies into a group less than two years after the deal. 1ot included - 1o financial data available.

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Fisted httpsDOOwww. dnbnor.comOportalfrontOnorXcomOnedlastOenO0223O!Odn b XnorX022#Xengelsk.pdf D +any of the departments within 1F' will be taken over by departments within 61' however 1F' must focus on supporting their local in market - O'*,%$5$%i#& 1ot included ( )eadquartered Illinois.

1ot included ( The leading office is located in the $&.

1ot included - 1o information about the deal.

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15= &TA4 A&&5T +A1A?5+51T ?4B$< FT6 <)IFFI<& 56I&B1 FT6 A%TI5&5F&%A'5T 6A+&%I'&&5F&%A' 5T &Q516'B4? 4enamed D +A54&%.'" &hipping" TAWFB4 15F&B1 &BA45& <F7 +arket research company" &7BTTI&) , 15=7A&TF5 <F7

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1ot listed httpDOOwww. issworld.comO&ite7ollection6ocumentsOarchiveOinvesto r OpdfOpresentationsOissXarsrapportX0220Xdk.pdf D They add a pest control department and want to expand it to the other countries ( Con'*,4*n%* 1ot included ( 1ot enough financial data.

1ot included ( 1ot enough data available. Fisted httpDOOshareholders.maersk.comO14Ordonl yresO' A6367'6(5/3'( 828A(>A'0(335'5.A!5#A7O2OAnnualX&Q'X0220Xda.pdf D They merge because the market they have been operated in has changed and now they decide it will be better to merge and create one company ( O'*,%$5$%i#& Fisted httpDOOwww. tnsglobal.comOXassetsOfilesOT1&X022#XAnnualX4epor t. pdfD They increases their presence in the $& market significantly - M$,6*# Fisted httpDOOwww. scottish(

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F5)+A1 '4BT)54& &7A4F5TT 45TAIF ?4B$< FT6 <IFFA4 <4B<54TW <F7 Tech data ltd 7BAT& )BF6I1? <F7 4euters ?roup <F7

B65B1 7I15+A FT6 AFF654& <F7 1A&&I7A 45TAIF A16 F5I&$45 <A4% A@lan group <F7 7BAT& <F7 +ultex.com inc.

newcastle.comOsnplcOirOfininfoOrepsO022#Oannual022#Oannual022#in dOchiefs0.pdf D They add a new brand to their beer and non( beer portfolio ( P,o(!%# 1ot listed httpDOOwww. nwg.co.ukOnwgar28.pdf D They buy to add to their business - O'*,%$5$%i#& Fisted httpDOOwww.cadburyschweppes.comO51O+edia7entreO<ress4eleas es O#!2#2#Xadams.htm D They make the deal to gain new brands and to become market leader in relation to confectionary business ( G*o4,$5-i% 1ot included ( +ore the one acquirer. 1ot included ( 1ot enough data available and they sell th Allders departments again two years after this deal. 1ot included ( They are acquired by 'ritish Fand in 022. and the deal takes place in 022#. 1ot included ( The company is American and Kephyr does not have separate financial data with respect to the 'ritish department. 1ot included ( They buy a subsidiary. Fisted httpDOOwww.about.reuters.comOhomeOmediarelationsOpressreleasesO in dex.aspxVreleaseidR!2/8 D They both work with making information available to the public and by merging they create new product areas ( Con'*,4*n%* 1ot included ( They buy a subsidiary.

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1ot included ( 1o data available. 1ot included ( They are acquired by $'7 in 0228 which is one year afterincluded this merger. 1ot ( 1o data available. 1ot included ( +erged to form +ittal &teel in 0228* not enough separate data to include

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6B47)5&T54 ?4B$< FT6 - hotel operator I4B1 +B$1TAI1 5$4B<5 FT6 ?5TI1?5 A' medical equipment manufacturer

KBB )BT5F <4I17I<5 6I &AQBIA )AW& I+& &I5+51& +56I7AF &BF$TIB1&U& FIA5 &$<<B4T &W&T5+& '$&I15&& $1IT 15? +I7B1 AO&

1ot included ( 1ot enough financial data

1ot included - !> month accounts around acquisition Fisted httpDOOwww.getingegroup.comOgetinge.aspVI6R!30,latestR! ( Integration of a world leading business complementing existing business area. +eet requirements of acquisitions* strong product range* skills* strong market position plus a strong presence in &weden. becomes marketleader"( o'*,%$5$%i#& Fisted httpDOOwww. vestas.comOdaOinvestorOregnskaberOregnskaber(022# D 'ecomes marketleader in the industry - and enters a new country ( O'*,%$5$%i#& Fisted httpDOOwww.rbs.comOmedia2#.aspV idR+56IAX751T45O<45&&X4 5F5A&5&O022#OP$15O!!X7)$47)IFF D +akes 4'& the largest insurance provider* gives 4'& scope* strong brands and improved offerings - o'*,%$5$%i#& Fisted httpDOOwwww. britinsurance.comO1ewsArticleOXO03;!OofferXforXpriX groupXtoXbeXmadeXbyXbrit aprilX!/ 022#.html D 'ecomes a $% insurance division with critical mass. The two companies complement well with respect to products* skills etc. and together they will provide better service* increased reach and so forth ( o'*,%$5$%i#& 6elisted in 022; A4FA foods $%" KephyrD through the merger they becomes europes largest dairy co( operative. They have complementary operations* better products and brands* efficiencies and improved management af financial ressources - o'*,%$5$%i#& 1ot included - 1ot listed and no homepage 1ot included ( 1o information about this deal and not enough accounts available.

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1ot included ( +ore than one acquirer Fisted httpsDOOwww. dnbnor.comOportalfrontOnorXcomOnedlastOenO0223O!Odn b XnorX022#Xengelsk.pdf ( the merger will yield significant synergies* lower exposure* and a complete integration will take place Fisted( o'*,%$5$%i#& httpDOOwww.wolseley.comOuploadsOannualreportsO=B&XA4X022#. p df and KephyrD 5xpand operations in continental europe. =ill complement existing french business* and create synergies and a platform for further organic growth. world market leader. Already market leader in Aranc* but improves this position through the acquisition ( o'*,%$5$%i#& 1ot listed KephyrD +ature industry* improve reach* becomes able to better compete in the market. acquire an operator within the same mature industry and same country. They improve their marketshare and coverage - o'*,%$5$%i#& 1ot listed. httpDOOwww.realbusiness.co.ukOhot!22O)ot!22rankings.html and KephyrD Important step to increase operational activities throughout $%. ?rowing through acquisition. Increasing scope to provide for future organic growth - aiming to become one of the largest in $% > 1$,6*# 1ot included ( 1o information about the acquirer. A shelf company - not included not enough information about the deal. Fisted httpDOOwww. scottish(newcastle.comOsnplcOmediaOnewsO022#O022#( 2.(!#O ( &trategy - work alongside local partners* invest in companies with strong market positions* strong brands and effective distribution systems. - G*o4,$5-i% 1ot listed httpDOOwww. hansonplc.comOindex.aspV<ageI6R0/!,WearR022#,1 ewsI6R0.8 D In line with bolt(on acquisition strategy. -

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o'*,%$5$%i#& 1ot included ( 1ot enough information about acquirer* not enough financial data. 1ot listed httpDOOwww. highbeam.comOdocO!<0(#8#/33#.html * httpDOOwww. belfastmh.co.ukOnews.html and KephyrD 7omplement existing business* support each other and yield multi benefits to both. +arket leader and natural growth of 0. L. significantly strengthen the position as one of the leading in the industry ( 1$,6*#

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<owderjet <harmaceuticals 1ot included* acquisition vehicle* wholly owned by $& based plc 7hiron. 1B46I&% 451TI1? A' Fisted httpDOOwww. investors.rbs.comOinvestorXrelationsOannouncementsO4 el ease6etail.cfmV4eleaseI6R!..#;! ( acquisition of market leading property leasing company ( con'*,4*n%* )5J BWP 1ot listed httpDOOnasdaqomx.comOdigitalAssetsO2O838XAnnualXsvenskX282#! .. pdf ( create an integrated nordic exchange* creating significant synergier to customers and stakeholders. The customers gain harmoni@ed markets* lower costs* a wider product offering* facilitating increased trading - o'*,%$5$%i#& 7B+<7B )BF6I1?& <F7 &A1TA1654 6I45%T 'A1% A?U& 7456IT 7A46 A16 <54&B1AF FBA1& B<54ATIB1& 1ot included* acquisition vehicle created with the purpose of undertaking this deal. Fisted httpDOOwww. investors.rbs.comOinvestorXrelationsOannouncementsO4 el ease6etail.cfmV4eleaseI6R!.8.#! ( 4'& has one of 5urope9s largest credit card platforms and is ideally suited to grow this business. 7omplement the already significant loan and card business in 5urope ( o'*,%$5$%i#& Fisted httpDOOwww. manchestereveningnews.co.ukOnewsObusinessOsO!#>O!# > ;2;XpubsXuniqueXprofits.html ( through acquisition* 51I becomes $%9s largest pub operator again ( 4*o4,$5-i% 1ot included ( 6eal not completed till 022.

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Acquisition vehicle* not included. 1ot included* two companies acquiring 1ot included* not enough financial data* only available account until 0228 httpDOOyittilaukset.yit.fiOprojektitOenvk2#OWITXvkX2#Xeng.pdf ( a new business segment through this acquisition - %on'*,4*n%*

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1o information about this company - in liquidation. 6eal not included Accounts already collected httpDOOwww. theregister.co.ukO022#O2>O2.OvodafoneXbuysXprojectXt el ecomO ( <T is too small to compete in hyper competitive telecom market* thus waiting to be acquired by large player Qodafone gains cost efficiencies* better service for customers and so forth ( o'*,%$5$%i#& Accounts already collected httpDOOfeed.ne.cision.comOwpyfsO22O22O22O22O22O2.O75O/.Owkr222 >. pdf ( access to new product area - sealing solutions - a high penetration threshold segment - 5,o(!%# httpDOOwww. brandrepublic.comO1ewsO!>.>>!O$nited('usiness( +edia(buys('uilding(title(;/m(dealO ( acquire new titles well in line with existing maga@ines - 4*o4,$5-i% 6elisted in oktober 022; httpDOOwww. isoftplc.comOcorporateOmediaXfilesOannualXreportX022 8. pdf ( +erger - expecting synergies* increased capacity* improved cost structure - creating a global leader. ?ained significant presence in ?ermany and 1etherlands. - market httpDOOwww. datamonitor.comOindustriesOnewsOarticleOV pidR'38/!0! A(;A8.(8'/!(/..!(6#!//3>6!'0',typeR1ews=ire ( acquiring a larger rival* merge to be able to better compete in the markets. - 1$,6*# Accounts already collected httpDOOwww. hsbc.comO!O0OnewsroomOnewsOnews(archive( 022#Ohsbc( to(acquire(lloyds(tsbs(bra@ilian(assets( (7omplement existing business* extend customer base. In line with strategy to develop presence in growth countries. - 1$,6*# Accounts already collected httpDOOwww. hsbc.comO!O0OnewsroomOnewsOnews(archive( 022#Ohsbc( agrees(to(acquire(bank(of(bermuda ( &trong positin in local market in 'ermuda* scale N geographic scope* synergies. The bank of

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A<4BQIA $% FT6

TB45J <F7

380 O !>20!.

)&'7 )BF6I1?& FB&A1?B <F7 )&'A" - banking <4B+BTB4A 65 services Q516A& FT6A

38# O !>!!;3

)&'7 )BF6I1?& 'A1% BA '54+$6A <F7 )&'A" - banking FT6 services

388 O !>!0#2

FFBW6& T&' ?4B$< <F7 FFBW" - financial services

?BF6AI&) 'A1% FT6U& 7456IT 7A46 A16 <54&B1AF FBA1 '$&I15&&5&

38. O !>!.;0

J&T4ATA <F7 JTA"-mining and refining services

FA& 'A+'A& 7B<<54 <4BP57T

bermuda will keep its own name and independence. (4*o4,$5-i% httpDOOwww. investorrelations.lloydstsb.comOmediaOpdfXirmcOirO022#O 022#XFT&'X?roupX4,A.pdf (Qalue enhancing in market acquisition httpDOOwww. investorrelations.lloydstsb.comOmediaOpdfXirmcOirO022#O 022#Aug!X?oldfishXAcquisition.pdf ( expand credit card N personal lending businesses - grow core businesses. Improve efficiencies* grow revenues and offer more choice to the customers. ( 5,o(!%#already collected Accounts httpDOOwww. xstrata.comOassetsOpdfOxta(ar0228Xen.pdf ( in line with ambition to grow copper business. httpDOOwww. xstrata.comOmediaOnewsO0228O2>O#!O2;2!75TO ( and option to develop a copper mine - 5,o(!%# +erger - renamed Active 7apital Trust httpDOOwww.citywire.co.ukOadviserO(OnewsOcollective( investmentsOcontent.aspxVI6R08>;>2,<ageR0 ( merger of two smaller companies( reason for the merger is that none of the two companies are large enough to compete in the market alone - o'*,%$5$%i#& 1ot included - not enough separate financial accounts - a subsidiary. 4enamed +ouchel <arkman after the merger. Kephyr - 7omplementary businesses* greater financial ressources* larger role in the market winning and serving a broader range of sectors. httpDOOwww.citywire.co.ukOpersonalO(OnewsOmarkets(companies( and( fundsOcontent.aspxVI6R0.2;3/,<ageR! ( greater scale* scale up activities and be able to participate in larger deals* reduce costs. Fack of skilled labor( due to the merger the combined business is able to compete in the market( o'*,%$5$%i#& 1ot included* wholly owned subsidiary of $& based company 6anaher corporation" 1ot listed Aluminium industry is a mature industry. )A is marketleader in the segment of aluminiu products* acquisition of this refinery

383 O !>!32#

#<7 I1Q5&T+51T T4$&T <F7 AIT"venture capital trust

AI+ T4$&T <F7* T)5

38; O !>.3;; 38> O !>.;;#

<$17) TAQ541& 45&54Q5 7B+<A1W FT6 +B$7)5F <F7 +7)F" - engineering consultancy services.

<$'+I&T45&& FT6

<A4%+A1 ?4B$< <F7

38/ O !>3.#3 3.2 O !>3;.#

6) 651+A4% )BF6I1? A<& )W64B AF$+I1I$+ A& aluminium product

4A6IB+5T54 AO& AF<A4T AF$+I1A 45AI154W

3.! O !>;8/2

manufacturer" TAWFB4 =BB64B= <F7 T=" ( housebuilder

=IF&B1 7B11BFFW )BF6I1?& <F7

strengthens position ( o'*,%$5$%i#& KephyrD Improved geographic coverage* god fit with existing business* position T= as one of leading housebuilders httpDOOwww. independent.co.ukOnewsObusinessOnewsOtaylor( woodrow( to(buy(wilson(connolly(.;>3#/.html ( largest housing builder in $%* shortage in industry* able to better meet this* increased scale - o'*,%$5$%i#& httpDOOwww. propertyweek.comOstory.aspV story7odeR#20/>3> ( a wave of consolidation in the house building industry - o'*,%$5$%i#& Accounts already collected httpDOOwww. investors.rbs.comOinvestorXrelationsOannouncementsO4 el ease6etail.cfmV4eleaseI6R!.88#! ( an important player in the Irish market* retain own name - 4*o4,$5-i% httpDOOwww.allianceboots.comOmain.aspVnidR!0#,pidR!32; ( buying the brand 7learasil* no ! in acne market* market leading in several countries. <ossibilities of product extension ( 5,o(!%# httpDOOmiranda.hemscott.comOirOwtbOpdfOarX0228.pdf ( increased scale in budget hotels sector* combining with existing business to gain cost and revenue synergies - 4*o4,$5-i% Accounts already collected. KephyrD in line with strategy - first build customer base and profitable business then possibly integrate backwards. $TA yields boh infrastructure and customers - 1$,6*# httpDOOwww. tele0.comOpagesO<ress.aspxV idR/2,sourceR!20!08. ( significantly cut costs* create a stronger competitor in the austrian market ( 1$,6*#

3.0 O !>>3>.

4BWAF 'A1% BA &7BTFA16 ?4B$< <F7* T)5 4'&" financial services 'BBT& )5AFT)7A45 I1T541ATIB1AF FT6 - pharmaceuticals products wholesaler

AI4&T A7TIQ5 <F7

3.# O !>/>##

<4B7T54 , ?A+'F5 7B+<A1WU& 7F5A4A&IF A715 T45AT+51T '4A16

3.8 O !/222. 3.. O !/!!33

=)IT'45A6 <F7 <45+I54 FB6?5 FT6 =T'" - hotel operator T5F50 A' T5F0.'"telecom and internet services provider $TA T5F5%B+ A?

3.3 O !/!.8>

'BB%)A+ T57)1BFB?W <F7 ')I.F"

15= AB7$& I17.

httpDOOmedia.corporate( ir.netOmediaXfilesOirolO!0O!02>3/OreportsO'ookhamXA4XfinalX#/;. p df ? de f`r nye omr`der indenfor militfr og testning med i deres portef_lje ( R&D

3.; O !/#!#; 3.> O !/#08. 3./ O !/83>2

15=7B <B=54?51 FT6 electricity generator and distributor &7BTTI&) , &B$T)541 5154?W <F7 &&5" - gas and electricity utility services

$1I7W7F5 F< A:$IFA &T54FI1? FT6

Acquisition vehicle - a joint venture. 6eal not included 4enamed 5.B1 $% in 0228 - mangler regnskab 022; KephyrD 7onsiderably strenghten position in core $% market o'*,%$5$%i#&

+56=AW <B=54 FT6

Accounts already collected. KephyrD Alexible and efficient power station* yielding significant operating and financial synergies. httpDOOwww.citywire.co.ukOadviserO(OnewsOmarket(and( sharesOcontent.aspxVI6R03!.0# . second largest distributor in $% - O'*,%$5$%i#&

332 O !/.!/! 33! O !/3.#2 330 O !/3;;2 33# O !/;;#0

6A=1AW &)B45 )BT5F& <F7 - hotel operator A4'B4 <F7 - holiday village operator <$17) TAQ541& IT'" FT6 'A&& <F7 - hotel operator

<A4A+B$1T )BT5F& ?4B$< FT6 751T54 <A47& $% )BF6I1?& FT6 I11&<I456 ?4B$< FT6 '4I&TBF )BT5F& , 45&B4T& I17.

6eal not included* not enough financial data available

1o information about this deal. 1ot enough financial data. 6eal not included 1o information about the deal* no information about acquirer. 1ot enough financial data* deal not included. Accounts already collected httpDOOwww. hotelinteractive.comOindex.aspV pageXidR.222,articleXi dR#/2 ( consolidation in the global hotel industry * combination of strong brands and management* yield synergies - 4*o4,$5-i% httpDOOwww. secinfo.comOdsQ:x..>g.d.htm ( rapid consolidation in the sector* significant synergies. 'ass to become important player. - 4*o4,$5-i% httpDOOwww. investor.barclays.co.ukOresultsO022#resultsOannualXrepo r tOwebsiteOdownloadsO022#XannualXreport.pdf ( becomes $% largest in this segment - overcapacity KephyrD want to create independent pan African gold business - a strategy based on growth - o'*,%$5$%i#&

338 O 0220;. 33. O 02!2;.

'A47FAW& 'A1% ?544A46 <F7 - banking services +A1A?5+51T &54QI75& FT6 4A16?BF6 45&B$475& FT6 44&" - mining A&)A1TI ?BF6AI5F6& 7B.* FT6

services 333 O 02!!38 33; O 02!.!8 33> O 02!;#. 33/ O 02082; 3;2 O 020.#. 1$4TB1 )BF6I1?& FT6 7A46I1AF )5AFT) $% 8!> FT6 =+(6ATA A' FB?.F" <45+I54 ABB6& <F7 <A6" - food producer AI1AF45AF+ FT6 ?$ITB1 ?4B$< FT6 I1T547A45 ?4B$< <F7* T)5 1BQB ?4B$< BWP $1IF5Q54 ?4B$<U& A+'4B&IA '$&I15&& 1A'I&7B ?4B$< )BF6I1?& 7B4<B4ATIB1U& 5$4B<5A1 +I6 5A&T A16 AA4I7A1 $1IT =A46 )B+5& ?4B$< FT6 n.a. acquisition vehicle* deal not included. Acquisition vehicle* formed with the purpose of completing this deal - subsisiary of $& based company. 1ot included 6eal not included acquired in 0223 httpDOOwww. secinfo.comOd!#/r0.!Ju.htm[#0@> ( strenghten brand offering and product portfolio* becoming marketleader in the dessert products. - 5,o(!%# Acquisition vehicle* not enough financial data available - not included

3;! O 02./0;

=IF&B1 'B=651 <F7 -property developer

httpDOOwww.wilsonbowden.co.ukOfinancialsXfinals022#OwbXannualXr eport(022#.pdf ( ward will keep its name. KephyrD &trenghten geographic coverage* bring critical mass ( 4*o4,$5-i%

3;0 O 02320/

&7BTTI&) , &B$T)541 5154?W <F7 - supplier of gas and electricity

ATFA1TI7 5F57T4I7 , ?A& FT6

Accounts collected

already

3;# O 0230.0 3;8 O 02380> 3;. O 023/2/

TAWFB4 , A4A17I& ?4B$< <F7 AFIAI1 BW '? ?4B$< <F7 '?" - gas producer and

+A475F 65%%54 I17.U& '$&I15&& A16 <$'FI&)I1? A&&5T& )A7%+A1 BWP A'< 5F <A&B BIF , ?A& 7A1A6A I17.

httpDOOwww. ofgem.gov.ukOAbout L02usOenforcementOmergersOoftO6o cuments!OmergersandaquisitionsL02!3.pdf ( overlap in markets th and products* improving &&5 marketshare 8 largest supplier of +erged with informa a few month after this acquisition - not included 1o information about this deal* no separate financial data on the acquirer httpDOOwww. bg(group.comOmediaOarchiveX0228O20!328(sx.htm ( extend existing operations ( improves market share in mature

distributor 3;3 O 02;##; A+Q5&7A< <F7 AQK"- financial services* private wealth management 4enamed Invesco in may 022; 3;; O 02;8!. 3;> O 02;>.8 5A&T &$445W )BF6I1?& <F7 4A&+$&&51?4$<< 51 A& - shipping services <)B51IJ 1AT$4AF ?A& FT6 AQA1TB4 A&A &T5I1 4B5 I1Q5&T+51T 7B$1&5F FF7

industry - o'*,%$5$%i#& Accounts already collected httpDOOwww. invesco.comOinvestOreportsOannrepX28.pdf ( expand area of <=+ to full $& coverage. httpDOOwww. invesco.comOmediaOpressXreleasesO0228X2#X2!.pd f ( position to better serve customer needs in the future 1$,6*# 1o information about this deal. 5&) was acquired in 022.. Bnly one year accounts are available. +angler regnskab 022; httpDOOwww.rasmussen.noOhoved.aspx og httpDOOwww.rasmussen.noOeiendom.aspx ( gennem dette k_b f`r 4? udbygget en af sine kommende # forretningsomr`der* ejendomsinvestering - %on'*,4*n%* &T %AT)A4I15 6B7%& httpDOOwww.reit.co.ukOtransactions.html ( $ntil 022# they have only invested in properties and now they invest in a luxury marina Con'*,4*n%* <etro(canada $% is a subsidiary of petro(canada - 7anadian based. 1o separate accounts available - deal not included. 6eal not included - subsidiary of ?5 httpDOOwww. danisco.comOcmsOconnectOcorporateOmedia L02relationsO newsOarchiveO0228OjuneOinvestorX!88Xen.htm ( significantly enhance product platform* notably in specialist products httpDOObusiness.timesonline.co.ukOtolObusinessOindustryXsectorsOsup p ortXservicesOarticle!2#;#8/.ece ( significantly increases the operations in 5urope ( 1$,6*# httpDOOwww. hoggrobinson.comOportalsO82O6ocumentsOAbout$sO7o m panyX)eritage.pdf ( expand business into new countries 1$,6*#

3;/ O 02/222

3>2 O 02/.>; 3>! O 0!2.22 3>0 O 0!!!2! 3># O 0!!#2#

45IT A&&5T +A1A?5+51T FT6 - asset management services <5T4B(7A1A6A $% FT6 ?5 45AF 5&TAT5 $% 6A1I&7B AO& 67B" - food ingredient and sugar manufacturer )B?? 4B'I1&B1 <F7 )4?.F" business travel agency 4enamed )ogg 4obinson group in 0223

I1T45<I6 5154?W 1B4T) &5A FT6 '517)+A4% ?4B$< <F7 4)B6IA &AU& ABB6 A66ITIQ5& 6IQI&IB1 %$B1I 45I&51 )BF6I1? A?U& 'TI 751T4AF 5$4B<5 '$&I15&& T4AQ5F 6IQI&IB1

3>8 O 0!!83#

ITQ <F7 ITQ" telecommunication s 7reated from merger between ?ranada and 7arlton. &=% $%" <F7 1B4T)?AT5 I1AB4+ATIB1 &BF$TIB1& <F7 computer software developer A1?FB A+54I7A1 <F7 AAF" ( manufacturing

?4A1A6A <F7

httpDOOwww. itvplc.comOitvOmergerOreasonsO ( significant benefits to all* lower costs* larger product offerings etc* creating one of europe largest broadcast producer( 4*o4,$5-i%

3>. O 0!!/;# 3>3 O 0!0!.0

'FI7% <F7 45'$& )4 ?4B$<

1o information about this deal* no accounts available - deal not included Fisted* but cannot find ticker KephyrD acqusition of business within one of core areas of expertise* double si@e and become leading in software applications in target market. <ossibilities of growth* complement existing business in )4 - 5,o(!%# Accounts already collected httpDOOwww.angloamerican.co.ukOarticleOV afwXsourceXkeyR873/.5! 6(3528(87>#(A!0!( 52!2.06'../.,xslXmenuXparentROnewsandmediaOpressrelease sOar chive022#O D Transaction build existing position* complementary fit - broader coverage - critical mass - grow through acquisitions +erged with other company in 022. - renamed resolution 1o separate accounts* deal not included

3>; O 0!0.!3

4B+A1 'A$541A5I16 )BF6I1? A?

3>> O 0!#08>

45&BF$TIB1 FIA5 ?4B$< FT6 - life insurance services

4BWAF , &$1AFFIA175 I1&$4A175 ?4B$< <F7U& FIA5 I1&$4A175 '$&I15&& &AA5=AW <F7

3>/ O 0!#>;;

3/2 O 0!8;83

=+ +B44I&B1 &$<54+A4%5T& <F7 +4=" supermarket operator &AA5&TB45 A7:$I&ITIB1 FT6 accounts for safestore group

KephyrD 5xpand to entire $%* expand product ranges and scope o'*,%$5$%i#&

+51T+B45 <F7

httpDOOwww.citywire.co.ukOadviserO(OnewsOmarket(and( sharesOcontent.aspxVI6R0.;2.! ( consolidation* becoming leading 5uropean selstorage specialist* growing through acquisitions - o'*,%$5$%i#&

3/! O 0!.!;2 3/0 O 0!.0.! 3/# O 0!.#8> 3/8 O 0!./.0

A<5& )BF6I1? A' 751TA$4 )BF6I1?& <F7 %A$<gI1? 'A1%I )A %A$<" - financial services &Q51&%A 75FF$FB&A A' &7A.'"

<A16BJ A' 751TA$4 7B++$1I7ATIB1& FT6 AI()BF6I1? AO&

1ot included - A<5& holding a holding company owned by two larger companies - no separate accounts on A<5& 1ot included* acquisition of subsisiary

httpDOOwww. kaupthing.isOV<ageI6R#32! ( expanding businesses creating a griant in nordic region - AI) erhversbank keep name" 4*o4,$5-i% Accounts already collected KephyrD &trong synergies and value created from acquisition by building on the presence in the A$& market o'*,%$5$%i#& httpDOOwww. sca.comOtemplatesO<age.aspxV idR0;/,epslanguageR51 [0228 ('ecomes marketleader within tissue in A$&

7A4T54 )BFT )A4Q5W FT6U& TI&&$5 '$&I15&&

3/. O 0!3#!3

+B16I <A7%A?I1? $%" FT6 - corrugate producer

'A$541A5I16U& 7B44$?AT56 <A<54 A16 <A7%A?I1? '$&I15&&5&

httpDOOwww. sca.comOdocumentsOenOAnnualX4eportsOAnnualX4eport httpDOOfindarticles.comOpOarticlesOmiXm#!!3OisX0X>/OaiX!!#;;>/08 ( becomes the 8th largest corrugate producer in 5urope httpDOOwww.cee(foodindustry.comOnewsOng.aspVidR8>8/8(mondi( s( world ( build on existing businesses* complementary fit* creating broader coverageM strategyD acquisition led growth to gain critical mass - o'*,%$5$%i#& Accounts already collected KephyrD consolidation in the $% car dealer industry confirming position as no. ! - o'*,%$5$%i#&

3/3 O 0!>3!! 3/; O 00!3>;

<5164A?B1 <F7 <6?" - car dealer +'1A 5$4B<5 'A1% FT6

76 '4A+AFF <F7

Q51674B=1 FT6

httpDOOwww. prnewswire.co.ukOcgiOnewsOreleaseVidR!!./00 ( They buy an insurance broking service because they fits to their strategy about offerings loans and other financial services to professional and wealthy clients - O'*,%$5$%i#& KephyrD Acquisition vehicle created to merge with &ecuricor and then being acquired by group 8 securicor - not included httpDOOwww. babcock.co.ukOindex.cfmOrecordid.0Onewsitem.!80 (

3/> O 000!3. 3// O

PBI1T B<7B 'A'7B7%

&57$4I7B4 <F7 <5T54)B$&5 ?4B$<

000..#

I1T541ATIB1AF ?4B$< <F7 'A'" engineering services

<F7

7reating a larger and stronger group* better placed to secure the increasingly large and complex project in $% industry httpDOOwww. babcock.co.ukOdownloadsO'abcockX4,AXcomplete.pdf ( same services* different customerbase* better serve all customers httpDOOwww. independent.co.ukOnewsObusinessOnewsObabcock( grows( with(pound!2.m(peterhouse(buy(.3;0/8.html ( expertise away from only military customers - 5,o(!%# 1ot included - deal completed in 022. According to Kephyr ( they want to gain economics of scale and cost savings - O'*,%$5$%i#&

;22 O 008!0! ;2! O 0083>.

6A1&%5 'A1% AO& - banking services 7BFFI1& &T5=A4T T$FF5TT <F7 7F&T" Ainancial advisory service" ATFA& 7B<7B A' AT7B.A" +ining equipment manufacture" TAT5 , FWF5 <F7 TAT5" &ugar trader"

1ATIB1AF I4I&) 'A1% FT6 <45'B1 ?4B$< FT6

;20 O 00;08!

I1?54&BFF(4A16 64IFFI1? &BF$TIB1&

According to Kephyr - They get at good strategic fit because they are experts in underground drilling and they get surface drilling P,o(!%# httpDOOwww. tateandlyle.comOTateAndFyleOourXbusinessOhistoryOhisto ryXtimeline.htm ( they become the only producer of the brand &<F516A - G*o4,$5-i%

;2# O 00;;2.

+715IF 1$T4ITIB1AF&U AFA'A+A('A&56 &$74AFB&5 +A1$AA7T$4I1? <FA1T 7)I<& BWP A'< PA+5& AI1FAW FT6

;28 O 00;/.> ;2. O 00>!2;

B4%FA A&A PB)1 &=I45 , &B1& FT6 <rivate owned" 'everage service" '? ?4B$< <F7 '?" ?as producer" I1AB4+A ?4B$< <F7

7ompleted in 022.. httpDOOwww. swire.comOengOactivitiesOuk.htm[PamesAinlayFtd- they continues under their own name and continues selling and producing tea ( G*o4,$5-i% httpDOOir.bg(group.comObgirOreportOar0228Oar0228.pdf ( they buy to expand their presence in the world ( O'*,%$5$%i#& httpDOOwww. informa.comOcorporateOaboutOhistory.htm ( they want to become global and T,A continues as a subsidiary ( G*o4,$5-i%

;23 O 00>3!2 ;2; O 00/>2;

+A$4ITA1IA )BF6I1?& 'Q TAWFB4 , A4A17I& ?4B$< <F7

;2> O 0#2223

;2/ O 0#2>23

;!2 O 0#02#8

;!! O 0#08.3

I1A" 'usiness information publisher" 6& &+IT) <F7 &+6&" <aper and 7orrugated <ackaging" A&&B7IAT56 '4ITI&) ABB6& <F7 A'A" Aood and ingredients manufacture" =BFQ54)A+<TB1 , 6$6F5W '45=54I5& <F7 +A4&" <ub house operator " &hA )A A" &eafood provider" &+IT) , 15<)5= <F7 Already found" +edical device manufacture" 1IFAI&%(A6QA175 AO& <rivate owned" 7leaning equipment manufacture" T$FFB= BIF <F7 Already found" Bil and ?as exploration" 'A$?$4 ?4B$< )A <rivate owned"

FI1<A7 7B1TAI154& FT6

TB15 '4BT)54& I17.

httpDOOwww. dssmith.uk.comOdownloadsOAinancialL024eportsOAnnu al4eportAull0228L02lo(res.pdf - they get at better position in the $% market* but the expected synergies seems to be missing - M$,6*# httpDOOwww.abf.co.ukOinvestorsOreportsO0228XreportOdownloadsOabfX arX0228.pdf ( they get a new brand and became number 0 in the $& market ( O'*,%$5$%i#& httpDOOwww. marstons.co.ukOdocsOwi@ardXpressXstatementXjuneX28. p df ( they get at bigger real estate base in the $% ( G*o4,$5-i%

=IKA46 I11& FT6

AI1A17Ii45 65 %I5F &A&

;!0 O 0#0>83

+I6FA16 +56I7AF T57)1BFB?I5& FT6

;!# O 0#80>3

AFTB I1T541ATIB1AF AO&

httpDOOwww.alfesca.comOsifgroupOuploadOfilesOpdfOsifXannualXreport X28.pdf ( they get new markets as well as new brands and Fabeyrie Ainancijre de %iel" continues as a separate brand under the umbrella ( G*o4,$5-i% httpDOOglobal.smith( nephew.comOcpsOrdeOxbcrOsmithnephewlsXmasterO0228XAnnualX 4e portXAccountsXandXAormX02(A.pdf ( they get at new product which supports the other however they already sell it in 5urope but it is not approved in the $& jet ( R&D httpDOOwww.alto(online.comO7ontentOAboutL021ilfisk(AFTB.aspxthey get a division called 1ilfisk(Alto ( P,o(!%#

;!8 O 0#3!03

5154?W AA4I7A FT6

httpDOOwww. tullowoil.comOtlwOaboutusOhistoryO02220228O - they get at better position in the African market and become a more balanced oil and gas company ( O'*,%$5$%i#& httpDOOwww. baugurgroup.comOV<ageI6R#/8 - they invest in retail business and they select those having the best forecasts ( P,o(!%#

;!. O 0#3..>

%A451 +IFF51 FT6

;!3 O 08203/ ;!; O 082>.8 ;!> O 08!2;. ;!/ O 080038 ;02 O 080;80

Investment company" )AFF7B //3 FT6 A&T4B1 )BF6I1?& FT6 &B1?'I46 A7:$I&ITIB1& FT6 Q<7 A' <rivate owned" 7learing house" 751T4I7A <F7 Already found" ?as and oil exploration" AAI4 I&AA7 $% FT6

+B44I& ?4B$< FT6 56BT57) FT6 7A1A4W =)A4A ?4B$< <F7 &$B+51 A4QB<A<54I%5&%$& BW 'A&T4B< 5154?W <A4T154& F<

1ot enough data. 1ot enough data. 1ot enough data. According to Kephyr. They want to create a bigger market and they support each other - o'*,%$5$%i#& According to Kephyr. - they get a stronger portfolio and a better position especially in the 6allas area ( O'*,%$5$%i#&

;0! O 080>;> ;00 O 08.#;0 ;0# O 08.;>! ;08 O 08./;8

;0. O 083#02 ;03 O 0833>>

;0; O 08;;>0

&7BTTI&) , &B$T)541 5154?W <F7 7A4FTB1 7B++$1I7ATIB1& <F7 '$1KF <F7 Already found" <aper packaging wholesale" <457I&IB1 )BF6I1?& $%" FT6 =BF&5F5W <F7 Already found" )eating equipment wholesale" 7A46<BI1T <F7

FB16B1 '4I6?5 &BAT=A45 )BF6I1?& <F7 ATFA1TI7 5F57T4I7ITW A16 ?A& FT6 &74551QI&IB1 7I15+A 15T=B4% FF7 ?4B$<5 <I5445 F5 ?BAA

1ot enough data.

According to Kephyr - they can serve their customers better and see it as a way to grow ( O'*,%$5$%i#& +erged with another company the year after.

httpDOOwww. bun@l.comOnewsO0>feb2..shtml ( they enter Arance which supports their position in 'enelux* 6% and Ireland. They want to be a logical player to international costumers ( M$,6*# 1ot enough data. According to Kephyr - they get a change to broaden their supply base and diversify their portfolio ( P,o(!%#

455Q5& BIFAI5F6 &54QI75& FT6 '4BB%& ?4B$< FT6

)'B& <F7U& >!3 1B1( '4A17) 'A&56 7A&) +A7)I15&

They merged with another company in 022; and the deal takes place in 0228.

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They buy a subsididiary. 1ot included. They buy a financial service department which should be used to manage their shares in other car manufacturing companies. 1on data available. 6eal not completed before 022..

=I1T51 FT6 45$T54& ?4B$< <F7

5&TAT5& , ?5154AF <F7 +B15WFI15 T5F54AT5 )BF6I1?&

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'A5 &W&T5+& <F7 'A" 6efense company" 4BA6&T54 F<

AFQI& <F7

=5F7B+5 '45A% FT6U& / +BTB4=AW &54QI75& &TATIB1& 6$1FB< &TA16A46 A54B&<A75 ?4B$< FT6U& 65&I?1 , +A1$AA7T$4I1? '$&I15&&5& %IFFI1?)BF+5 <B=54 FT6U& 77?T <B=54 &TATIB1 I1 1B4T) FI17BF1&)I45. TI''5TT , '4ITT51 ?4B$< <F7

httpDOOproduction.investis.comOinvestorsOrsOrs0228O - they can deliver a better package to the $% army in relation to armoured vehicles P,o(!%# 1on data available.

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+5??ITT <F7 +??T" Aircraft part and equipment manufacture" 751T4I7A <F7 Already found" <ower plant"

httpDOOwww. meggitt.comOresourcesOpdfsOar0228.pdf ( they increases their position within the aircraft supply market ( P,o(!%#

According to Kephyr - they make the deal to be able to supply their costumer with fewer fluctuations because now they own a bigger part of the production facility themselves ( P,o(!%# According to Kephyr - they have complementary sectors and markets and creates a significant player ( O'*,%$5$%i#&

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5J5F <F7 Already found" Areight transport service" +BTB4&<B4T QI&IB1 FT6 =BFQ54)A+<TB1 , 6$6F5W

'4A16& )AT7) 7I47$IT& FT6U& AB$4 4A7I1? 7I47$IT& '$4TB1=BB6 <F7

1ot enough data.

The deal is not completed before 022..

;#/ O 0.>3#/ ;82 O 0./220 ;8! O 0./03; ;80 O 0./3#/ ;8# O 0./>;/ ;88 O 032#28

'45=54I5& <F7 Already found" 1ATIB1AF ?4I6 T4A1&7B <F7 'T ?4B$< <F7 I&& AO& 6elisted in 022." 7leaning services" &T51A AA&TI?)5T&Ak4QA FT1I1? A' )A165F&'A1%51 FIQ I&I& A&&5T +A1A?5+51T <F7 1ew nameD A,7 Asset +anagement" A7A+" Asset +anagement" =<< ?4B$< <F7 ?AF51 )BF6I1?& <F7 6elisted" 1ew nameD =arner 7hilcott" <harmaceutical" )&'7 )BF6I1?& <F7 Already found" Ainancial &ervice" <45&T'$4W )BT5F& FT6 +A4%& , &<51754

74B=1 7A&TF5 $% FT6 AF'A7B+ &<A 51?5F(W)TW+c BW

7annot determine why they change their name.

The deal is not completed before 022.. httpDOOwww. issworld.comO&ite7ollection6ocumentsOarchiveOannualX reportX0228Xdk.pdf ( They can now deliver all service options in Ainland ( P,o(!%# 1on data available.

'B&TA6&A%TI5'BFA? 5T 64BTT

&<< AB16Ak4&c%4I1? 1ot enough financial data. A' AB45I?1 , 7BFB1IAF I1Q5&T+51T T4$&T <F7 According to Kephyr - They get a presence in 7ontinental 5urope and can create more diversified product portfolio ( P,o(!%#

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?45W ?FB'AF ?4B$< I17. '4I&TBF(+W54& &:$I'' 7B+<A1WU& 5&T4A75 TA'F5T& )B4+B15 45<FA75+51T T)54A<W '$&I15&& +A4%& A16 &<51754 45TAIF AI1A17IAF &54QI75& )BF6I1?& FT6 T4AQ5FB6?5 FT6U& !#3 A455)BF6 )BT5F& <54 $1A

6eal not completed before 022.. httpDOOsec.edgar(online.comO0220O2>O!8O222!!!#88.(20( 2222!;O&ection0.asp ( They buy their intangible assets as well as the trademark of a certain product ( R&D

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According to Kephyr - they enter a new market where they work together with a retail store in relation to offer financial solutions to the costumers ( Con'*,4*n%* 1ot enough data available. httpsDOOimages(na.ssl(images(

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?4B$< <F7 +%&" 7lothing retailer" ''A ?4B$< <F7 ''A" Aviation service" 'ritannic ?roup plc

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&tandard 7hartered 'ank plc &TA1" 'anking services" 4egus ?roup plc 4?$" Bffice management" +itsui , 7o.* Ftd

AI474AAT &54QI75 I1T541ATIB1AF ?4B$< I17. Allian@ 7ornhill Insurance plcUs life insurance business <rime7redit Asia" Ftd

ama@on.comOimagesO?O20O22O22O22O08O0/O/!O080//!30.pdf ( they add a new brand to their portfolio regarding clothing for women P,o(!%# httpDOOwww. bbaaviation.comOnewsO022!jul!!.htm ( they needed to buy one of the other service companies to get access to growth opportunities ( O'*,%$5$%i#& The deal takes place in 0228 but they merge with 4esolution Fife ?roup in 022. and create 4esolution. httpDOOfiles.shareholder.comOdownloadsOstancharO0;;2>3/>!x2x!3/ ! >O!5/6A7.!(386A(8273(>/0A( 06;6;'A.0A'AO&7'X0228XAnnualX4eviewXlow.pdf ( they want to get a better position in http DOOwww.r egu s.comOa ssthe etsOAsian en(usOmarket financia(lO+arket Acquisition.doc ( they make the deal due to increased demand and because they want to become a significant player in the $& market ( M$,6*# Their headoffice is located in Tokyo.

): ?lobal )oldings Inc.

7able , =ireless plc

5dison +ission 5nergyUs international generation portfolio 5xodus 7ommunications Inc.Us certain assets Blympia 7apital A&A

+ore than one acquirer.

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Aktiv %apital A&A AI%" Ainancial &ervice" 4oyal 'ank of &cotland ?roup plc* The Aready found" Ainancial servise" 6airy Aarmers of 'ritain Ftd 1orwich $nion plc 'archester )ealthcare Ftd <rivate company"

Fynk &ystems Inc.

Associated 7o(operative 7reameries Ftd )<I ?roup )oldings Ftd =estminster )ealthcare Ftd

httpDOOcorp.aktivkapital.comO?lobalO7orporateOAinancialL02reportsO AnnualreportX0228.pdf ( they become market leaders with respect to delinquent consumer debt portfolios ( O'*,%$5$%i#& httpDOOwww. investors.rbs.comOinvestorXrelationsOannouncementsO4 el ease6etail.cfmV4eleaseI6R!.8!/2 - they go through with the deal to get a better position in the fastest growing credit card payment the and world ( O'*,%$5$%i#& Bnly datamarkets back to in 022. the deal takes place in 0228. They are private owned and therefore they are obligated to have the financial statements on the webpage. They are a part of Aviva and only long(term savings in the $% keep the 1orwich h ttpname DOOsearc h.ft.com$nion. OftArticleVqueryTextR'archesterL02)ealthcare ,pageR0,idR28!2!322!82#,ctR2 - the nursing sector has experienced consolidations and large merger activity in this period

1ursing home operator" The A& for 022; is not available." ;3! O 0;0!8> ;30 O 0;0.## 'arclays plc Already found" Ainancial service" )&'7 )oldings plc Already found" Ainancial service" Faird ?roup plc* The Already found" 5lectronic equipment component manufacture" A4+ )oldings plc A4+" 7omputing micro( processor developer" 6iageo plc &cotia ?as 1etworks plc Puniper Ainancial 7orporation Qaleu <romotora de Qendas Ftda

and 'archester wants =estminster due to their geographic fit and the expected synergies ( O'*,%$5$%i#&

;3# O 0;0>/.

7enturion =ireless Technologies Inc.

httpDOOwww. investor.barclays.co.ukOresultsO0228resultsOannualXrepo r tOwebsiteOdownloadsObarclaysXarX0228.pdf ( they enter the $& credit card h market M$,6*# httpDOOwww. sbc.co( m O!O0OnewsroomOnewsOnews(archive( 0228Ohsbc( bra@il(signs(agreement(to(acquire(consumer(finance(operations( of( indusval( they are already present in 'ra@il but they increases their (d M$,6*# h ttpDOposition Owww. lair (plc.comOaboutOindex.cfmVfR! - they produces electronic equipments but due to this deal they also enter the market for antennas ( Con'*,4*n%*

;38 O 0;0/02

Artisan 7omponents Inc.

According to Kephyr. - they get a new technology which they can use in their own business and create a more harmoni@ed product ( R&D The deal is not completed before 022..

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$rsus Qodka )olding 1Q

1ational ?rid Transco plcUs The deal is not completed before 022.. south(of(5ngland and &cotland gas networks 'ertam )oldings plc The deal is not completed before 022..

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4owe 5vans Investments plc %one ByjUs 7argotec division :ineti: Ftd :ineti:" 7onsulting" Tesco plc Already found"

+ac?45?B4 International A' Aoster(+iller Inc.

;;2 O 0;>0/0

=m +orrison &upermarkets plcUs !2

They demerge the department in 022. and the deal takes place in 0228. httpDOOwww. qinetiq.comOhomeOinvestorXcentreOfinancialXinformation .<ar.22!3.Aile.pdf ( they are working in consulting services regarding defense and security and buy a company that produces robots to military operations ( %on'*,4*n%* 7annot find any data regarding the deal.

4etail" ;;! O 0>!.!> ;;0 O 0>!3.; ;;# O 0>0#;; =estfield ?roup

&afeway stores 6uelguide plc The deal was not completed before 022.. 1ot enough data available. httpDOOexperian.global(pressoffice.comOdocumentsOshowdoc.cfm ( they get a new software they can add to their existing products and thereby support the costumers with a even better product ( R&D 1ot enough data available.

Insight Investments Ftd '7 <roperty )oldings Ftd 5xperian Ftd :A& Ftd 1ot listed" Information* analytical and marketing service" =illiams Fea ?roup 'owne 'usiness &olutions Ftd Inc. 4esolution Fife ?roup Ftd 'ritish Fand 7ompany plc* The Already found" 4eal estate investor" &portingbet plc &'T" Bnline and telephone sports betting." 7ranswick plc Ariends <rovident plc &wiss Fife $%" ?roup plc

;;8 O 0>#>28 ;;. O 0>.!!> ;;3 O 0>3>3!

The company begins in 022. due to a merger of # companies.

&pirit ?roup FtdUs 3. pubs

httpDOOwww. britishlandreports.comOAinancial4eportsO0228Interim&ta tementOchairman.html ( they add new pubs to their existing active portfolio ( G*o4,$5-i% httpDOOwww. sportingbetplc.comOpagesO!8OBurNQision.stm - they buy the brand to be able to offer poker worldwide ( P,o(!%# The deal is not completed before 022.. The deal is not completed before 022..

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<aradisepoker

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<erkins 7hilled Aoods Ftd Fombard International Assurance &A Alterra Futon $%" Ftd &parebanken 4ana Industrious )oldings Persey" Ftd Atlantic =aste )oldings

T'I plc )elgeland &parebank 'rixton plc

T'I is taken over by Abertis in 0228. The same year as this deal takes place. The deal is not completed before 022.. The deal is not completed before 022..

Augean plc

1ot enough data available.

0/083.

;>8 O 0/0;20

A$?" =aste management service" )ome American Assurance 7ompany

Ftd

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&erco ?roup plc &pare'ank ! +idt( 1orge 7idron Invest A' Airport 7oncessions and 6evelopment Ftd Travis <erkins plc %ingston 7ommunications )ull" plc %7B+" Telecommunication services" <ubfolio Ftd

4oyal , &unAlliance Insurance ?roup plcUs Papan branch operations and portfolio IT15T plc

The deal is not completed before 022..

The deal is not completed before 022..

4omsdals Aellesbank A&A The deal is not completed before 022..

Ainnveden A' T'I plc

The deal is not completed before 022.. The deal is not completed before 022..

=ickes plc Bmnetica Ftd

The deal is not completed before 022.. httpDOOwww. kcom.comOinvestorcentreOannualreportO022.OAull L02rep ort.pdf - they get access to new and attractive technologies with respect to enterprise data and I< networking skills ( R&D

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<unch Taverns plcUs .8. Innspired pubs +edex Inc. 1ew <ubco T7" Ftd

The deal is not completed before 022..

&miths ?roup plc ?lobe <ub 7ompany Ftd* The <remier Aoods plc &erco ?roup plc

The deal is not completed before 022.. 1ot enough data available.

'irdUs 7ustard 47I )olding 7orporation

The deal is not completed before 022.. The deal is not completed before 022..

#2#;38 ;/3 O #280>; ;/; O #2.2/> ;/> O #2;230 ;// O #!.;!3 >22 O #!>>/! >2! O #0/3.2 >20 O ##3!.; >2# O #88;;0

Tieto5nator Byj

&.5.&.A. &oftware und &ysteme A? 4emec 6efense , &pace Inc. Aondo Immobili <ubblici &ynergy ?racechurch )oldings Ftd Fabeyrie &A

The deal is not completed before 022..

7obham plc

The deal is not completed before 022..

'arclays plc 6enbridge 1o. 0 )oldings Ftd &hA )A Already found" &eafood processor" <restbury =entworth Ftd <,B <orts Ftd 5lcoteq 1etwork Byj 5F:AQ" 7ommunication network service" 'ritish $nited <rovident Association Ftd* The Brchard &treet Investment +anagement FF< &tatkraft &A

There are 8 acquirers and the deal is not completed before 022.. 1on data available.

&pirit Intermediate Acquisitions Ftd ?ujarat Adani <ort Ftd

httpDOOwww.alfesca.comOsifgroupOuploadOfilesOpdfOsifXannualXreport X28.pdf ( they buy the company to get some really strong brands in 5urope ( G*o4,$5-i% 1ot enough data available.

>28 O #>#.3.

The deal takes place in 022# and <,B is taken over by 6< =orld in 0223. Tellabs ByUs manufacturing h ttpDOOwww.elcoteq.comO14OrdonlyresO87//;;;.(AA0;(8627( operations in 5spoo AAA/(0A>/6A;!>6'8O2OAnnualreport022#.pdf ( they add a production facility to their portfolio and they agree to deliver products to Tellabs afterwards ( P,o(!%# AJA )ealth Australia +ore than one acquirer.

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Brion <roperties 1o ! &arl 1ot enough data available.

>23 O 802>;# >2; O 88..!!

?raninge A'Us 08 hydropower plants )elen +cArdle 7are Ftd

The deal is not completed before 022..

'ondcare Ftd

1ot enough data available.

>2> O 8//#0!

>2/ O ..!>/3

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)ufvudstaden A' )$AQ.A" 4eal estate management " :ineti: ?roup plc Already found" &cientific research services." #i ?roup plc III"venture capital investment services Aberdeen Asset +anagement plc A61" - asset management Admiral Taverns Ftd ( puboperator AAB& International Ftd steel manufacturer Aggregate Industries plc - quarrying and aggregates manufacturer Aitken 7ampbell , 7ompany Point Qenture Alfred +cAlpine plc construction services

Qasaterminalen A'

httpDOOfindarticles.comOpOarticlesOmiXm25I1OisX022!XAebX!3OaiX;28 >830> ( they add a office building to their asset portfolio ( P,o(!%#

=estar Aerospace and 6efense ?roup Inc.

httpDOOwww. qinetiq.comOhomeOinvestorXcentreOfinancialXinformation .<ar.22!3.Aile.pdf ( they want to offer new technology to their customers in consulting ( Con'*,4*n%* Accounts and quotes already found httpDOOwww.datamonitor.comOindustriesOnewsOarticleOV pidR.2;'.;;5( A.A3(85!/('3/2( #783.85!A27',typeR1ews=ire - entering Austria and opening Accounts and quotes already collected AA+ A4 0222D acquisition add scale to existing or complementary businesses* gain foothold in fast growing Australian market - market 1ot enough available financial data - not listed

'ank Austria TAQ )igh Tech( $nternehmens 'eteiligung ?mb) 5quitiFink ?roup

5nterprise Inns plcUs 0#/ pubs &pecialised <etroleum &ervices ?roup Ftd Arehner 7onstruction 7ompany Inc. Aitken 7ampbell , 7ompany Ftd %ennedy $tility +anagement Ftd

1o information about this deal - possibly a subsidiary of #i* no separate accounts available 1ot listed delisted in april 022." Acquired by )olcim group in 022. 1ot included Aitken - Aitken - not included Accounts already collected - delisted in Aebruary 022> acquired by carillion" httpDOOwww.propertymall.comOpressOarticleO;!3; ( complement existing businesses and improve the construction services business httpDOOmiranda.hemscott.comOirOmcaOreportsOpdfO+cAlpineX4e portX022 !.pdf ( yield scope and scale to construction service area* continue to improve this area through bolt on acquisitions*

>>> O /0/2. !0O2!" >!3 O .33/# 20O22"

Allied 6omecq plc alcoholic drinks and beer producer

'uena Qista =inery Inc.

Alphameric plc AF+" - <ennine 4etail )oldings IT consultancy services Ftd , software developer

>3>!/ 2>O2! " >#2 O 3!.8/ 2.O22"

A+< $%" Investment &ervices Ftd investment services Anite ?roup plc AI5" IT services and consultancy

Interactive Investor International plc 6atavance ?roup &A&

Accounts already collected* delisted now* but quotes are collected httpDOOfindarticles.comOpOarticlesOmiXm#8>>OisX> X>0OaiX;;3!8>3# ( important step in strategy to build aw global wine business and a significant h ttpDOOw w.datam onitor .comOindust riesOn ew sOarticleOV pidR;0;;0286( 8'A6(8607(/06!(03!20!883'7',typeR1ews=ire ( restructuring in Alphameric retail - from the acquisition gained scale* large customer base* and large retail customers httpDOOfindarticles.comOpOarticlesOmiXqn8!.>OisX022220!/OaiXn 1ot included* subsidiary of Australian based company* no separate accounts httpDOOwww.hemscott.comOirOaieOir.jspVpageRnews( item,itemR;>;03;.23208# ( IT consultancy services to banking* telecoms* public sector and other customers in Arance. Aocuses on 5( commerce and internet services. critical mass in 5(commerce consultancy services in Arance and increase AniteUs presence in two of its focused vertical markets. httpDOOwww.hemscott.comOirOaieOir.jspVpageRnews( item,itemR00/3!0220# - acquisition of leading supplier complement the existing and extensive telecom offerings 1ot listed httpDOOwww.archant.co.ukOassetsOdownloadsOA4A2#businessXr eport.pdf ( acquiring newspaper titles that are important in their regional areas* helps archant to increase scope and th presence regionally becoming . largest" and in Fondon Accounts and quotes already collected httpDOOwww.abf.co.ukOmediaOpressXrelease.aspVprR02282#2/X! ( provides entry to the fast growing +exican market* and also the possibility to introd these brand to the $& market where they are 6eal not included* not enough financial information* not listed httpDOOwww.babcock.co.ukOindex.cfmOrecordid.0Onewsitem./ ( expanding

>3; O >283/ !0O22" /#! O !//#0 ! !0O2# " /82 O 0#!02 > 2.O28 !!23# > 2.O20 >;# O >#/3!

Anite ?roup plc see above Archant 4egional Ftd - 1ewspaper publisher

7alculus &olutions Ftd

Independent 1ews and +edia FtdUs 1orth Fondon division

Associated 'ritish Aoods plc A'A" food manufacturing Athleisure Ftd - clothes , footwear retailer 'abcock International ?roup plc

$nilever ?roupUs +exican food oils and fats brands 'lacks Feisure ?roup plcUs sport , fashion division )unting 6efence &ervices

the defence and support services* becoming even stronger in this area /!/ O !8>>! > 2#O2# " /#; O 0!8#3 ; 2/O2# " >00 O .>!!8 2#O22" !!>23 ; 2.O20 " >/0 O !2!## 3 !0/03 3 !0O20 " >33 O >2#># !!O2!" >0# O .>!#0 2#O22" >#/./ 'A5 &ystems plc 'A" - 6efense company +evatec 7orporation Accounts and quotes already collected KephyrD 5xpand engineering technology operations httpDOOwww.baesystems.comO1ewsroomO1ews4eleasesO02 2#Opress X0!2#022#.html ( acquisition of leader in missile defence and enhances our ability to provide high(end services for our growing 1ot listet httpDOO!0/.#.02.8!Oecon(wpOgetOpapersO282.O282.228.pdf ( acquiring clydesdale enhances 'arclaycard merchant network. The credit card business in the $% is a mature market with high and intense competition Accounts and quotes already collected httpDOOwww.bbaaviation.comOaboutOgrphistory03#.htm ( acquiring skills in pilot training for the first time. 7omplement existing services but new area of service - convergence 1o information about the deal * not included

'arclaycard - credit card services

7lydesdale Ainancial &ervices Ftd Bxford Aviation )oldings Ftd

''A ?roup plc aviation services and manufacturer 'erkeley ?roup plc* The - residential construction services 'erry 'irch , 1oble plc '''" - financial services 'orregaard Industries Ftd 1orge - chemical manufacturer '< Amoco plc oil exploration and extraction 'rake 'ros plc - Aood and beverages wholesaler 'ritannia 'uilding &ociety

Work 4oad Ftd

'erkeley Ainancial &ervices 4enamed 'erkeley 'arry 'irch after the merger ?roup Ftd KephyrD enlarged group will be better positioned for competition* and gain synergies* mature industry Atishol@ A? 1o financial data available for the company

&olvay &AUs polypropylene business +,P &eafoods =holesale" Ftd +oney &tore $%* The

Accounts and quotes already collected httpDOOwww.bp.comOgenericarticle.doV categoryIdR02!0/3>,contentIdR0 22!.0. - combining with existing business creating one of the world9s largest in the area of propylene ( overcapacity httpDOOwww.referenceforbusiness.comOhistory0O8O'rake('ros( <lc.html ( strong foothold in the business of fresh fish ( product 1o information about this deal

20O2!" >># O /2>30 2.O2!" /2/ O !#80! 0 !2O20 ;.!.. !2O22 " !0.>; 0 2.O20 >>. O /!..3 2;O2!"

- banking services 7arphone =arehouse 7ellcom Ftd ?roup plc 7<=" mobile telecommunications 7attles plc 7TT" ( Associates 7apital credit services 7orporation plcUs motor finance loan portfolio 7edar ?roup plc 5nterprise &olutions ?roup software consultancy services 7entaur ?rain Ftd Aylsham ?rain +arketing grain trading services Ftd 7entrica plc 71A" gas production and distribution services Bne.Tel plc httpDOOwww.cpwplc.comOphoenix.@htmlVcR!0#/38,pRirol( history - first move into facilities management - product httpDOOwww.telegraph.co.ukOmoneyOmain.jhtmlV xmlROmoneyO0220O!2O! >Ocnmoo!>.xml ( acquisition to be earnings enhancing and broaden the base to fully exploit the technology base ( 1ot listed delisted in 0220" 1ot enough financial data 1o information about this deal Accounts and quotes already collected httpDOOwww.centrica.co.ukOindex.aspV pageidR#/,newsidR3/,typeR!;,y earRarchive - becoming one of $%9s largest in a growing industry. Bne.tel keeps its own name httpDOOwww.centrica.co.ukOfilesOreportsO022!XannualXreport.pd f ( acquiring one.tel yield position in new business area telecommunications - convergence Accounts and quotes already collected httpDOOwww.centrica.co.ukOindex.aspVpageidR#/,newsidR888 - add to existing home(service business - increase its access to the on(demand market - product 4enamedD Amerisur resources 1ot enough financial data* not included 1ot enough financial data* and not listed 1ot enough financial data* no information about this deal* not included

/.! O 0;!!> 3 !2O28 0;338 8 !!O28 " 023;0 . 2#O28 !.#22 # 2#O2#

7entrica plc

6yno(4od plc

7haco 4esources plc A+54" - oil and gas exploration 7helsfield plc (real estate investor and developer 7hester <roperty )oldings Ftd - real estate development

Amerisur &A

&tannifer &outhend <roperty )oldings plc

;>8!> 2#O2! " !20#3 . 2.O20 " >3/80 2#O2! " 3;03/ 2;O22 " 0///! > >23;; 2!O2! " >// O !!.## ! 2.O20 " >3# O ;3.8! 2!O2!" !83!; . 20O2# " .3.!2 20O22 "

7hubb plc ( &ecurity services and lock 7lear 7hannel $% Ftd - outdoor advertising services 7lose Ainance 7I" Fimited - financial intermediation 7+? plc 7ognita &chools Ftd ( <rivate school 7ordiant 7ommunications ?roup plc advertising agency services 6anisco AO& -food ingredient and sugar manufacturer

''4 &ecurity

1ot enough financial data available - deal not included

&core Butdoor Ftd

1o information about this deal

%7 Ainance Ftd 7omputer Answers International Ftd Asquith 7ourt &chools Ftd +icroArts 7orporation

1o separate accounts ( a subsidiary of close brothers group - deal not included 6eal not included - merger with logica in 0220 - not enough separate financial data to analy@e 1o information about the deal and not enough financial data 1o accounts before 022# and deal takes place in 022! Acquired by =<< group in 022# httpDOOwww.allbusiness.comOmarketing(advertisingO8!/8/#3( !.html Accounts and quotes already collected KephyrD becomes .th largest in the sector flavour producer httpDOOwww.danisco.comOcmsOconnectOcorporateOinvestor L02relationsOi nvestorL02newsOenObusiness L02updatesO0220OflaX0.Xen.htm ( strengthen position in sector of flavour producer* and underline position as global 6elisted in &eptember 0223 httpDOOwww.caterersearch.comOArticlesO0222O!0O!8O##3#0Ode( vere( buys(cavendish(for(bargain(32m.html ( establishes presence in Fondon - market Acquired by 7endant in Bctober 022. 1ot included Acquirer is a holding company* no information about the holding company and no separate accounts

<erlarom &A

6e Qere ?roup plc ( 7avendish )otel ( Fondon <ub and hotel operator 5bookers plc online travel reservation site operator e(doc ?roup plc Travelbag )oldings Ftd

6ocument +anagement &ervices Ftd

;;#.. 2!O2! /2! O !0..2 . /.2 O 03/32 3 2>O28 /23 O !#022 / 23O2# ;/>>. 2!O2! ;2;;; 2;O22 #230! 0 !0O28 /.8 O 0>!#; 2 !2O28 " >8/ O ;8/>/ !!O22"

5lan 5urope Ftd

5lan 5urope is a wholly owned subsidiary of 5lan 7orporation* no separate accounts - not included 5lectra <artners 1ewhill Ftd httpDOOwww.checkout.ieO1ews.aspVI6R!#! - continues to 5urope trade as independent unit* 5<5 enters to guide and control Ftd - venture capital the management - product 5map 7ommunications 7annes Fions International 1ot listed Ftd Advertising Aestival httpDOOwww.emap.comOpress(office(item.aspV4esourceR08;! -acquiring the global leader in this segment they have themselves been in for !2 years ( overcapacity 5map plc 5+A" 5xcelsior <ublications &A httpDOOwww.emap.comOpress(office(item.aspV radio station 4esourceR0.;! - acquisition of strong brands in france operator making emap the 0nd largest publisher in france. The acquired titles is integrated into emap yielding synergies ( 5niro A' =indhager +ediengruppe Accounts and quotes already collected 1ot included - windhager liquidated less than two years after. 5nnstone plc 511" 'reedon plc 1o information about the deal 5quinox 7onverged &olutions Ftd 5rinaceous ?roup plc 54?" - property services &ynetrix Ftd )ercules <roperty &ervices plc 1ot enough financial information KephyrD Bperations overlap in several areas* and thus combining forces will yield significant synergies* scale and gains from ex. 7ross selling - overcapacity httpDOOwww.erinaceousir.comOerinaceousOirOreportsXpresentati onsOrepo rtsXarchivesO0228Oreac0228Oreac0228.pdf ( consolidation and integration of operations ( overcapacity httpDOOwww.finnveden.comOcustomerOtemplatesOnewspage.aspxV idR# 23 - they get a better position in the 5uropean marketplace as well as in Asia ( M$,6*#

:uadrant )ealthcare plc

Ainnveden A' AI'" +anufacturer of fasteners and components to the automotive industry."

'ulten A'

>!8O .30/. Airst 7hoice )olidays 20O22" plc TT." Travel agency"

)oliday )ypermarkets !//>" Ftd

httpDOOwww. tuitravelplc.comOtuitravelOmediaOpressOA7pressarchiveOi n dex.jspVrefR>3,yearR0222 ( they have bought hypermarkets before but because they turned out to be such a good business they decided to buy more ( P,o(!%#

;>8!0

Ajord &eafood A&A Already found" Areecom.net plc Areeserve plc Areeserve plc AT %nowledge Ftd ?ameplay.com plc

<ieters Qisbedrijf 1Q

+ore the one acquirer.

..0;0 .>!.2 32822 38#2# .3>>2

<egasus ?roup plc &martgroups.com Intracus Ftd Aorum 7orporation* The 7omputec +edia A?Us online games division and games retailing businesses Kockoll ?roup Ftd* The Allied Feisure plc +aquet A?

1on financial data available. 1on financial data available. 1on financial data available. 1ot enough financial data available. 1ot enough financial data available.

0/0.!8 ;.2>. >.; O ;>82> 2!O2!" >8> O ;#028 !!O22"

?' ?as )oldings Ftd ?eorgica plc ?etinge A' Already found" ?%1 plc ?%1" Automotive component manufacture " ?1 1etcom AO&

1ot enough financial data available. Bnly data back to 022! and the deal takes place in 0222. The company does not have a homepage. httpDOOwww.getingegroup.comOpdfOgetingeXannualrepX0222.pdf ( they add a new area called surgical systems to their existing areas ( Con'*,4*n%* httpDOOwww.gkn.comOnewsO1ewsItem.aspV Fast<ageR&earch,1ewsI 6R38 - they gain the production facilities from 1issan in Papan and they expect to get synergies in the future with respect to other of their engineering products ( P,o(!%# ?1 1etcom is a subsidiary of ?1 store nord and they have their own financial statements but only back to 0220 and the deal takes place in 0222. +erged into ITQ in 0228 and can only find data back to 022! where the deal takes place. httpDOOwww. theregister.co.ukO022#O!2O2#OgxXnetworksXtoXbuyXpipe xO- they merge to be able to grow and become a significant player in the market. The new company is called <ipex 7ommunication because this is the strongest brand. ?J 1etwork can add new

1issan +otor 7o.* FtdUs drive shaft operations

3!3.#

Pabra 7orporation

32!/8

?ranada ?roup plc

'order TelevisionUs television assets <ipex Internet Ftd

/0/ O !>#2/2 !2O2#"

?J 1etworks plc AA7" Internet provider"

/2> O !##;;3 !2O20" /!8 O !80;;0 20O2#" >0; O 320!. 28O22"

>8! O 3>2.2 2!O22" ;!#8>

)alma plc )F+A" &afety and security systems" )ammerson plc Already found" 4eal estate developer" )arvey 1ash ?roup plc )Q1" 4ecruitment agency and IT outsourcing service" )ays plc )A&" Fogistic technology service" )enkel Foctite Investments Ftd )ighbury )ouse 7ommunications plc 6elisted in 0223" +aga@ine publishing" )&'7 )oldings plc Already found" Ainancial &ervices" Incepta ?roup plc

product to their portfolio ( P,o(!%# httpDOOwww. halma.comOhalmaplcOaboutOacquisitions.jspVrefR> they can use the technology that '5A is in position of in relation to their elevator door systems ( R&D 4T ?roup 6evelopments httpDOOwww. hammerson.comOpagesO!2!O0220N<ressN4eleases.stm Va Ftd rticleXidR!;0 - they add new assets to their portfolio regarding shopping malls in Othe Tech<artners International h ttpDOOwww. harveyna sh.com pdfO$% 022market .O)arve(yO'*,%$5$%i#& L021ashL02Annual Fimited L024esultsL02022!.pdf - they get access to the $& market where they expect high growth opportunities within the coming years ( M$,6*# 'ureau 6U5lectronique Appliquee &A 5<& Ftd httpDOOwww. hays.comOenergyOnuclearOeps(environmental.aspx ( they become a subsidiary that work in the Irish market ( G*o4,$5-i% 1.A. They buy a subsidiary.

%elsey Industries plc

>#; O 332;/ 2>O22"

7olumbus ?roup plcUs maga@ines division

/!# O !80.8. 20O2#" >83 O ;03!3 2>O22" >>3 O /0;#3 2;O2!"

%eppel Insurance <te Ftd

7unningham 7ommunication Inc. +T= 7orporation

Innovation ?roup plc* The 5vent software developer" Already found"

httpDOOwww0.hemscott.comOscriptsOAAJnewstory.dllOtextV5<I7R7B F,&erial1umberR!2##,1ewsTypeRAA4,IndateR03O23O0222 ( they work in a competitive market and to secure their position and be able to continue their growth companies must consolidate ( O'*,%$5$%i#& httpDOOwww. hsbc.comO!O<AX!X!X&.OcontentOassetsOinvestorXrelatio n sOhsbc022#ara2.pdf and httpDOOwww. hsbc.comO!O0Oabout( hsbcOgroup( history ( they get more products in &ingapore in relation to llbusiness.comOcompany(activities( h ttpDOOwww.a managementOcompany(structures(ownershipO38;>>!;(!.html ( they merge to become a global leader ( O'*,%$5$%i#& httpDOOwww. innovation(group.comOBur)istory.aspx ( they add new resources to their company in relation to technical capabilities surrounding service(orientated architectures and componentsl ( R&D

/> O !0/./0 >3. O >20#3 20O2!" >>/ O /#/>3 2;O2!" >/! O //!/. 2/O2!" 38/0! /!! O !8!3#2 2!O2#"

Insight Investment +anagement Ftd I&& AO& Already found"

4othschild Asset +anagement Ftd Favold ?roep

Insight is a part of )'B& and was formed in 0220 which is the same year as the deal took place. httpDOOwww. issworld.comO&ite7ollection6ocumentsOarchiveOnewsOis sworldXnewsOdkX0222.pdf ( they get a stronger position in the 6utch market with respect to facility services - O'*,%$5$%i#& httpDOOwww. issworld.comOpressOarchivesOpressXreleasesO<agesOiss Xan dXmXandXmXjoinXforcesXtoXdevelopXhealthXcareXinXtheXnordic. as px ( they are in the same industry and +,+ +edical continues as a of (te G*o4,$5-i% h ttp DOindependent Owww. jjwhotesubsidiary ls.comOenOc orI&& pora Ohistory.shtml and httpDOOwww. jjwhotels.comOenOthebernershotelO - they buy a luxury hotel in Fondon ( G*o4,$5-i% 1.A. They merge and continue as =IFink.com Inc. which is an American company. httpDOOwww. kyro.fiOcontentparser.aspVdeptidR!!38,rssfileRhttpDOOc ws.huginonline.comO?O#2./O<4O022#!0O!2./2#;.xml ( they enter into an agreement with the two companies and become the market leader regarding machinery for the glass production and before the deal %yro was market leader in relation to glass production - O'*,%$5$%i#& httpDOOwww. landsecurities.comOwebsitefilesOlandXsecuritiesXreportX 0 22!.pdf ( they buy new land in $% with the aim to create a new urban district - P,o(!%# 1ot enough data available.

I&& AO& Already found"

+,+ +edical

PP= )otels , 4esorts Already found" %nutsford ?roup <lc %yro Byj Abp ?FA" ?lass and glass machinery manufacturer" Fand &ecurities plc Already found" 4eal estate investor" Fexington ?roup Ftd the" F?< Telecom )olding A' 6elisted in 0228 due to the deal." 7ommunications equipment manufacturer" Floyds T&' Asset

'erners )otel The" Ftd

=IFink.com Inc. ?lasto )olding 'Q* K. 'avelloni Immobilaire &pa.

>;! O >##/# 28O2!" >03>2

=hitecliff <roperties Ftd

=olsey &ecurities Ftd

/!; O !83!3; 28O2#"

Allgon A'

httpDOOfindarticles.comOpOarticlesOmiXm25I1OisX0222X&eptX3OaiX3.2 20;!! ( 4,6. Allgon has a wide product range and is leading in the market of high tech IT components. Invests heavily in 4,6. F?< will benefit from the high tech products og gain access to new segment - acquired by powerwawe technologies may 28". 7heck datastream for stock prices* F?< Allgon )olding A' R&D

!8!/00

6utton Aorshaw ?roup Ftd 1o separate financial statements available.

Ainance 6ivision Ftd .8!.. 00!03. 20O28" /.. O 0>00.3 !2O28" Fondon &ecurities plc Fynxangel )oldings" plc +arylebone =arwick 'alfour ?roup plc Already found" )otel operator" +inelco A' 1ot listed" +inelco develops* produces and markets selected minerals customised for industry worldwide" Ansul )oldings &A Torex 4etail Ftd 1.A. the deal takes place in !///. 1ot enough financial data.

)otel du Qin Ftd

httpDOOwww. mwb.co.ukOmwbOhotels.jsp ( their existing hotels are mainly located in boutique areas where as )otel du Qin is located in cathedral and university areas. They continue to operate under separate names ( G*o4,$5-i% httpDOOwww. jepix.seOpdferOF%A'XarsredovisningX022#.pdf ( they make a vertical acquisition to be able to deliver their products to the costumers ( P,o(!%#

/!. O !80>!3 28O2#"

&tinnes A?Us Arank , &chulte and +inerals 6ivision

;>2/. 0!3!83 ;..2# !2O22" >30 O ;/8;. !0O22"

+oneyextra plc +otor&port Qision Ftd +ultimedia 7orporation plc 16& ?roup plc 1ot listed in $% until 022# and the deal takes place in 0222" Internet access software developer" 1obia A' Already found" %itchen manufacture"

Ingleby !28." Ftd 'rands )atch Feisure plc Illuminator plc

1on financial data available. 1ot enough financial data available. The year before the deal contains no numbers. 1ot included - bought shortly after by other company - no information httpDOOwww. nds.comOpdfsOAnnualX4eportX022!Xb,w.pdf (they gain the possibility to include betting* using computers and cell phones* into their portfolio of technological products ( P,o(!%#

Brbis Technology Ftd

/#. O 02/.30 !0O2#"

?ower ?roup Ftd

httpDOOwww. nobia.comO6ocumentsOengO4eportsOAnnualO1obiaXA4 X 022#Xeng.pdf (they buy ?rower because they have a strong position in the 6IW market and that is an important distribution channel now and in the future - P,o(!%#

/8. O 088>2> 23O28"

1ordAnglia 5ducation plc 1A5" <rovider of training* education and childcare" 1ovar plc <acific &pirits $%" Ftd <andox A' 6elisted 0228" )otel operator" <earson Television Ftd <owderject <harmaceuticals plc :ineti: Ftd Already found" &cientific research service" :uintain 5states and 6evelopment plc :56" 4eal estate investor" 4amirent Byj Already found" +achinery manufacture" 4ank ?roup plc 41%" 1ow 5xxon mobil JB+ at 1W&5" )otel operator" 4eckitt 'enckiser plc Already found"

Feapfrog 6ay 1urseries plc

httpDOOwww. nordanglia.comOarticle.phpVarticleR+jI0 - they increases their number of nurseries and locations to become market leaders - O'*,%$5$%i#&

>.>/# 28O2!" !2!>33 >!/ O .;./! 2#O22" 3.>!3 23O22" ;#!28

Albert Ackermann ?mb) , 7o %? 'lairmhor Ftd )otellus International

7annot find the deal. 1ot enough financial data. httpDOOwww. pandox.seO4eports.aspx 4eport 0222 page 8" - they want to be present in the 1orthern part of 5urope and this is the reason for the deal ( M$,6*# <earson Television is bought by 4TF ?roup less than two years after this deal takes place. 1ot enough financial data.

Talk'ack <roductions +edeva Qaccines

/.#O 0;>!/# !0O28" /2#O !033.0 2>O20" /2; O !#03>> 2!O28"

=estar 7orporation

According to Kephyr. - they are able to deliver a broader range of products to their customers in relation to defence - P,o(!%#

=embley Fondon" Ftd

httpDOOwww. quintain(estates.comO1ewsOArchive1ews.aspx ( they want to create more jobs and facilities for this part of Fondon P,o(!%# httpDOOqfx.quartalflife.comOclientsO & 0jit2fmsl#xvr!..s.!jhq..""OfiOr amirentOrssOnews.aspxVcultureRen($&,quantityR///// - they close a lot of depots in the 1ordic countries after the merger and the administration of the new units will be taken on by 4amirent O'*,%$5$%i#& 1o available information

Altima A'

!832.# 2!O2#"

'lue &quare Ftd

>3! O ;>;.3

+osquito 7oil ?roup

httpDOOwww.reckittbenckiser.comO4'TemplatesO+ediaFatest1ewsIte m.aspxVpageidR!2> - they become present in the Indonesian market

!!O22"

)ousehold product manufacturer" 45IT Asset +anagement Ftd Already found" Asset management" 4euters ?roup plc Already found" news information services" 4+7 ?roup plc 7oated and other materials" A@orim <roperties Ftd

which is a good way into the Asian market in general - M$,6*#

/#0 O 0222#3 !2O2#"

According to Kephyr. - they want to enter Israel9s real estate market - M$,6*#

>80 O ;2!20 23O22" >;.!> 23O2!"

Wankee ?roup 4esearch Inc.

Alexander 4ussell plc

httpDOOwww.about.reuters.comOhomeOmaterialsOinvestorrelationsOres u ltsOlatestandarchivedresultsO0222prelimXfull.pdf ( they want to build larger scale business - O'*,%$5$%i#& 1ot enough financial data.

/8! O 0#08// 2;O28" .3!!3

4oshni Investments plc 5xpo 7ommunications Ftd &<T" called &piritel Investment company" 4oyal 'ank Ainancial ?roup &age ?roup plc* The Already found" &oftware supplier" &age ?roup plc* The Already found" &oftware supplier" &alton $% &anctuary ?roup plc* The 6elisted 022;" +usic provider" 5rnst , Woung Trust 7ompany Ftd &oftline Ftd

httpDOOwww. spiritelplc.comOdownloadsO4oshniX<lacementXPul y28.p df ( they want to be part of the telecommunication market and this is their first investment in this segment - P,o(!%# 1.A. it is a 7anadian bank.

/03 O !;.!2> !!O2#" /0> O !;/082 2/O2#" >>.;> >0> O 32080 2.O22"

httpDOOwww. investors.sage.comOcompanyXinformationOtimelinesOacq uisitionXtableO - they want to get a position in the &outh African market - M$,6*# httpDOOwww. investors.sage.comOcompanyXinformationOtimelinesOacq uisitionXtableO - they add volume to their business in the American +arket - O'*,%$5$%i#& 1ot enough financial data. httpDOOfindarticles.comOpOarticlesOmiXgx.020OisX!//>OaiXn !/!00;83OpgX - they double their revenue and get a lot of solid deals because 7+7 had long(lasting agreements with a lot of bands - O'*,%$5$%i#&

Timberline &oftware 7orporation

<ifco )oldings plc 7astle +usic <ublishing Ftd

03!.>> 2>O28"

&inger , Ariedlander ?roup plc Investment banking" &%A A' &A%.'" 'earing and engineering products" &mith , 1ephew plc Already found" +edical device manufacturer" &miths ?roup plc Already found"

=intrust plc

They are a subsidiary of %aupthing bank from Iceland.

/83 O 088/33 2;O28"

=illy Qogel A?

>>0 O /2;!; 2.O2!"

=estaim 'iomedical 7orpUs $& and 7anadian 'urns 6ressing 'usiness

>;. O >.3>8 2.O2!" /80 O 0##003 28O28" /88 O 080/.> 2.O28" /.3 O 0>;0/3 !2O28" !;33;! 2;O2#" .;;.; !;208#

'arringer Technologies Inc.

&miths ?roup plc Already found"

6ynamic ?unver Technologies FF7

&miths ?roup plc Already found" &miths ?roup plc Already found"

T4A% 7ommunications Inc Integrated Aerospace Inc.

&oldier Ftd &outhnews plc &tena A'

)amleys plc 6enit@ Investments Ftd <eninsular , Briental &team 1avigation 7ompany plcUs ferry

httpDOOwww.skf.comOportalOskfOhomeOnewsVsearchcategoryRall,fro mdateR02282!2!,todateR0228!0#!,contentIdR20;!0>,xR2,yR 2[ - they get a better position in the Fubricant market and add the product knowledge to a separate business unit in the ?roup Industrial 6ivision - P,o(!%# httpDOOglobal.smith( nephew.comOcpsOrdeOxbcrOsmithnephewlsXmasterOA42!( complete.pdf02.pdf ( they buy a company which speciali@e in wounds treatment which can support their existing business - P,o(!%# httpDOOwww.smiths( group.comOsiteAilesOresourcesOreportAttachmentsO&mithsX4A.pd f ( they add narcotic detection systems to their portfolio and that is complementing their existing business very well - P,o(!%# httpDOOwww. smiths( group.comOpressXreleaseXdetails.aspxVreleaseI6R>3 - they want a better position in the $& market and that is done by investing in new technology and business ( R&D httpDOOwww. smiths( group.comOpressXreleaseXdetails.aspxVreleaseI6R>> they increases their position by buying new technologies ( tt R&D h pDOOwww. smiths( group.comOpressXreleaseXdetails.aspxVreleaseI6R/3 - they can now deliver all in relation to landing gear for airplanes to their cosutmers P,o(!%# 1ot enough financial data available. &= is acquired by Trinity +irror the same year as this deal and the financial data in Kephyr is the one of &=. 1ot enough financial data available.

operations on the Irish &ea /0# O !3#>#; 2/O2#" &un?ard Insurance &herwood International plc &ervices Ftd <rivate company" Insurance company" &uperfos Industries AO& Potipac ?roup AO& Taylor , Arancis ?roup plc 747 <ress FF7 According to Kephyr. - they both work in the insurance industry and by merging they get a stronger position in the 5uropean market O'*,%$5$%i#& 1ot enough financial data. They become a part of Informa in 022# and we cannot find separate financial statements. httpDOOwww. tnsglobal.comOXassetsOfilesOT1&X0222XAnnualX4eport. pdf ( they buy the leading advertising monitoring agency and gain 0.L of the American market - O'*,%$5$%i#&

!!!/!3 !.#222 28O2#"

>!> O .;#3# 23O22"

Taylor 1elson &ofres plc Already found" Adverti@ing monitoring" Taylor 1elson &ofres plc Already found" Adverti@ing monitoring" Tele! 5urope A& Tele0 A' Already found" Telecommunication services." Tele0 A' Already found" Telecommunication services." Templeco .// Ftd

7ompetitive +edia 4eporting

>/8 O !2!>.! !!O2!"

T5&O4apid 7hek 4eporting httpDOOwww. tnsglobal.comOXassetsOfilesOT1&X022!XAnnualX4eport. pdf ( they buy a niche company which track costumers behavior in relation to usage of the cinema - P,o(!%#

33882 >/# O !2!.2/ !!O2!" /02 O !.2.>! 20O2#" !;80>#

5lTele 4ogaland AB4A Telecom 'QUs 4ussian operations

1ot enough financial data. httpDOOwww. tele0.comOuploadOfilesOannualreportsO022!en.pdf ( they enter the 4ussian market as a result of their success in the 'altic area ( M$,6*# httpDOOwww. tele0.comOuploadOfilesOannualreportsO022#en.pdf ( they buy the largest telecommunication provider in the $% market O'*,%$5$%i#& 1ot enough financial data.

Alpha Telecom $%" Ftd

'rownUs )otel Ftd

/8/ O 03.>.; !!O28"

Trans(&iberian ?old plc Angarskaya T&?" <roi@vodstvennaya ?old mining service %ompaniya A& BBB holding company" Travelodge Ftd Tyco 5lectronics Ftd Thistle Islington 6orman &mith )oldings Ftd I+I plcUs energy controls businesses

httpDOOmiranda.hemscott.comOirOtsgOpdfOannualreportsOannualreport0 2 28.pdf ( they add a new area to their portfolio - O'*,%$5$%i#&

!/2//. ;>.3>

1ot enough financial data. 7annot find any documentation regarding this deal.

/0>2> 23O2!"

Tyco Alow 7ontrol )olding $%" Ftd <rivate company" &teel tube manufacturer" $facex $% )oldings plc

7annot find any information regarding this deal.

3#;!/

7ambridge =ater plc

1ot enough financial data.

>>8O /!!!8 $nited 'usiness +edia 23O2!" plc Already found" 'usiness media company" >/2 O $nited 'usiness /.80> 2/O2!" +edia plc Already found" 'usiness media company" Qattenfall By

Allison(Aisher International Inc.

httpDOOwww. prnewswire.comOcgi( binOstories.plVA77TR!28,&TB4WROwwwOstoryO2>(2#( 022!O222!.8;/30,56AT5R - they gain a lot of new markets due to this deal - G*o4,$5-i%

4oper &tarch =orldwide

httpDOOwww. prnewswire.comOcgi( binOstories.plVA77TR!28,&TB4WROwwwOstoryO2>(2#( 022!O222!.8;/30,56AT5R - they gain an increased position in the $& advertising monitoring market - G*o4,$5-i%

>## O 38!00 2;O22"

./../

)Ymeenlinnan 5nergia By <rivate company" &ells electricity and heat to private costumers" Qest(=ood AO& - wood &wedoor ?roup

httpDOOwww. vattenfall.comOwwwOvfXcomOvfXcomO?emeinsameXInha lteO6B7$+51TO#32!3>vattO#>30#/finaO0222(Annual4eport.pdf ( they double their district(heating sales and triple their gas sales in the Ainish market - O'*,%$5$%i#& 1ot listed - renamed jeld wen in 0223

28O22" !#>82# !!O20" >0! O .;;/0 2#O22" /#3 O 02/.3/ !0O2#" >;8 O >8!0; 28O2!" /## O 0208>3 28O22"

furniture manufacturer von 5ssen )otels Ftd - 7liveden )ouse )otel hotel operator =arner 5state =inglaw ?roup Ftd )oldings plc =154" property investment =olseley plc plumbing and equipment wholesaler Jenova ?roup plc J51" pharmaceuticals manufacturer kssur )A B&&4 but not before 28O2!" - prosthetics manufacturer Tobler +anagement )olding A?

1ot enough accounts available 1ot listed* 1ot enough financial data available - not included Accounts on orbis - not collected httpDOOwww. propertymall.comOpressOarticleO0./. ( secured portfolio with predominance in southeast - 4*o4,$5-i% Accounts and quotes already collected KephyrD Acquisition of leader in &wiss market httpDOOwww. secinfo.comOdQ./@.!b.b.htm ( in line with strategy to expand geographic reach - 1$,6*# 6elisted august 022. httpDOOboards.fool.co.ukO+essage.aspVmidR38#!#/> ( merger due to need for consolidation in the industry. The enlarged group better skills in product discovery and development skills - R&D 1o accounts before 0228* account from !///(022# can be collected from ( httpDOOwww.ossur.comOV<ageI6R;.>2 httpDOOwww. ossur.comOlisalibOgetfile.aspxVitemidR30># ( AA is a company of hi(tech products* the company is built on innovation and technical skills. - R&D

7antab <harmaceuticals plc

Alex(Aoot Inc.

Append"- B: .otal l"#t o/ deal# - Da"ly Stoc0 Pr"ce#

Acquiror Deal No 8 ! 18 3/3 1#0 /03 $$! !/$ 8 / 83 " 3 8"" /38 $18 //3 888 /0" $33 813 /# /8 $#1 "3 /# 38" 83" 8!0 "3/ 11 #! !$ //0 $/$ "/ "0# #/0 "0$ !1 8"! 3## #1# "!$ /! 1## 33/ 181 "31 " 0 8$$ Acquiror name country code %& %& %& %& %& %& %& %& D; N6 %& %& %& %& %& %& %& %& %& (5 %& %& %& %& %& %& %& %& %& SE SE SE %& %& %& SE %& %& %& %& %& 5S %& %& %& %& %& %& Target name &an' Austria T() *igh Tech+ Unternehmens &eteiligung %m,* T*E Technologieholding %m,* Aim Trust plc- The Scottish 4rovident 5nstitution- The Deutsche Tie8,ohr A% AT DE %& %& DE " #$" !i %roup plc 3300 !i %roup plc 18130! !4C 5nvestment Trust plc "/0$$ A,,ey National plc #"$# "31$ A,,ot %roup plc A,erdeen Asset 2anagement plc Target country All Deal values Accouncement code th EUR " -!!"."/ 1"0-"3#.$0 110-!1!.0$ $-#18-3!/.#" 18"-/0$.#$ $/8-11 . 1!#-1"3.1 83 8/.00 3- 10-!8#.!" 1"8-3/ ."# 8/-8/!.3 1/0-" .0 data 0#.10.$000 0!.0$.$000 0/.03.$00! 0".0#.$000 !1.08.$001 11.10.$000 1$.0/.$001 $0.10.$000 03.0 .$00! !0.0".$00/ $$.0!.$001 01.0!.$00$ 0 .10.$000 1$.1$.$001 *12+32*++, 0/.0#.$001 1!.1$.$000 18.0$.$000 13.0$.$000 0/.10.$00$ 01.0!.$001 !1.0 .$000 0$.0 .$00$ 10.1$.$00! *,2,*2*+++ !0.0 .$000 $!.08.$00/ $/.01.$000 $1.0/.$000 +52+42*+++ $0.0#.$001 03.11.$000 08.10.$00$ $$.0".$00/ 0#.0!.$00/ 1#.0$.$00/ *52+42*++, 1 .0$.$001 $$.0!.$00/ 0 .0$.$00! 0!.03.$00/ $0.11.$001 $0.0#.$000 $".10.$00! 11.08.$000 18.08.$00/ 11.0 .$001 01.0!.$000 Completion data 0#.10.$000 0!.0$.$000 $#.0".$00! 01.08.$001 0$.10.$001 !0.11.$000 !0.0/.$001 $$.1$.$000 13.03.$00! !0.0".$00/ $$.0!.$001 01.0!.$00$ 0#.11.$000 1$.1$.$001 4,2,*2*++, 0/.0#.$001 01.01.$001 18.0$.$000 1!.0/.$000 01.11.$00$ 1#.0/.$001 $".0".$000 1!.11.$00$ 1$.0$.$00/ *,2,*2*+++ !0.0 .$000 $/.1$.$00/ 1".0$.$000 01.03.$000 4,2+62*+++ $8.11.$001 03.11.$000 $#.11.$00$ 0!.0#.$00/ 03.0 .$00/ 1!.10.$00/ +72+32*++, 0#.0!.$001 18.03.$00/ $/.0!.$00! $!+0#+$00/ 18.1$.$001 11.0#.$000 1".1$.$00! $ .10.$000 01.1$.$00/ 11.0 .$001 01.0!.$000 Strategy 2ar'et 4roduct 6vercapacity 2ar'et 6vercapacity 6vercapacity 6vercapacity 2ar'et 6vercapacity 6vercapacity 6vercapacity 4roduct 2ar'et 4roduct %eographic 2ar'et 4roduct 4roduct 4roduct 4roduct 4roduct 6vercapacity 6vercapacity 6vercapacity %eographic 4roduct R>D 6vercapacity 2ar'et %eographic 2ar'et R>D 6vercapacity 6vercapacity 2ar'et 4roduct %eographic 6vercapacity 4roduct 4roduct 4roduct 4roduct 6vercapacity 6vercapacity 6vercapacity 2ar'et 6vercapacity Convergence Listed or not listed 7 7 7 7 7 7 7 d d d d d d n 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 -

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d 7 7 7 d d d 7 7 7 7 7 7 7 7 7 7 7 7 -

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7 7 7 7 7 7 7 d 7 7 7 7 7 n 7 7 7 7 7 d d d 7 d d 7 7 7 7 d 7

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1/.0$.$00$ 1$.0!.$00/ 0#.0!.$001 01.10.$001 1#.10.$00/ 1 .0!.$00/ $3.0/.$00/ $$.0$.$000 18.0#.$000 $".0#.$000 !0.0 .$00$ 1".0".$00$ 0".0#.$000 13.11.$000 $8.10.$00/ $".0".$001 !0.03.$00/ 01.0#.$000 $$.0$.$000 $0.1$.$000 11.0/.$001 1#.0$.$00/

$$.0!.$00$ 0 .0 .$00/ 11.0 .$001 0$.1$.$00$ $/.11.$00/ 0/.0 .$00/ $3.0/.$00/ 08.0!.$000 0/.1$.$000 !0.10.$000 0#.0".$00$ 18.0#.$00$ 01.08.$001 1#.1$.$000 0!.11.$00/ $".0".$001 !0.03.$00/ !1.10.$000 01.0#.$000 $0.0$.$001 1".0 .$001 !0.0/.$00/

R>D R>D 4roduct 4roduct 4roduct R>D R>D 4roduct 4roduct 4roduct 2ar'et 4roduct 4roduct 4roduct 4roduct 2ar'et 2ar'et 2ar'et 6vercapacity 6vercapacity 6vercapacity %eographic

7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7

Dynamic %unver Technologies LLC US TRA; Communications 5nc 2arconi Actuation Systems 5nc. T5 %roup plc (airchild De8ense 2iller &reBing Company 4hilips Analytical &) Jara' Systems Corporation *e'imian La,oratories 5nc. 4aradisepo'er Sports&oo'.com 4rimeCredit FAsiaG Ltd Chase 2anhattan Card Company Limited Consolidated 4apers 5nc. S44 Liv8Ers?'ring A& 2idt,an' A:S US US %& US US NL US US CR US *; *; US SE D;

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6vercapacity 2ar'et 4roduct

7 7 -

$#$ 3 1 #$0 $1! 8#! 3 //! $$3 1 " !$3 !3" !$ $ 1 1# # $38 #/# $/8 38 3!# $!" 138 "1/ !8/ !3# 88/ 8#0 3/0 $"3 18$ !3 30 30 8# 3!8 $ # "$ /!1 $"# / $ /## 3 / 3"1 "3 !" 31! !3/ #!3 3

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Taylor =oodroB plc

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&ryant %roup plc =ilson Connolly *oldings plc Alpha Telecom FU;G Ltd &altCom %S2 (6RA Telecom &)<s Russian operations UTA Tele'om A% AU+System A& 2icroBave 4oBer Devices 5nc. Kuality Systems > So8tBare 5nc. C62SAT mo,ile communications Sonera 6y@ 6range A:S Somer8ield plc<s / larger stores ;ipa ;itle 4aHarlama Ticaret ve %ida Sanayi AS *5T T>S Stores plc &uilding > 4roperty F*oldingsG Ltd Angars'aya 4roiHvodstvennaya ;ompaniya AS 666 Laird %roup plc<s auto component unit 2anuli Dyna8le7 4olymer Sealing Solutions Ltd SouthneBs plc &4 Amoco<s Southern North Sea assets Energy A8rica Ltd (our Seasons %roup Unilodge *oldings FU;G Ltd Allison+(isher 5nternational 5nc. Roper Starch =orldBide Aprovia U; Ltd *yder 5ndustrial Ltd Repap Enterprises 5nc.

%& %& %& L) RU AT SE US US US (5 D; %& TR 4L %& %& RU %& (R %& %& %& JA US %& US US %& %& CA

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$$.01.$00/ 01.0#.$00! 1".0$.$00! 0!.10.$000 1/.11.$001 $$.0#.$00! 10.1$.$001 1!.10.$000 08.08.$000 $".0!.$001 $3.0!.$$0$ 0#.0".$00/ $3.01.$000 $".0$.$00! 0/.0".$00$ !0.10.$00$ 1/.1$.$000 $$.0".$00/ 1 .11.$000 0!.0!.$00/ $1.0".$00! $".10.$000 !1.0".$000 0/.0 .$00/ $3.03.$001 01.03.$001 +,2+32*++, +42+62*++, $1.0".$00! $1.1$.$000 $#.08.$000 $#.0 .$001 $0.0/.$000 1$.1$.$00! 0/.0$.$000 0 .08.$00! $1.1$.$000 $ .0/.$000 1/.11.$001 $$.1$.$000 $3.0$.$00$ 1".0 .$00$ $0.0".$00/ 1/.11.$00! 0#.1$.$00$ 1#.08.$00$ !0.0/.$00! $!.0 .$001 01.1$.$00! 11.01.$000

13.0!.$001 13.01.$00/ 1".0$.$00! 0!.10.$000 !0.11.$001 08.0!.$00/ 11.0$.$00$ $".11.$000 1$.0#.$000 1/.01.$001 0#.11.$00$ 11.10.$00/ $3.01.$000 11.11.$00! 1#.0".$00$ 0#.01.$00! 1$.0$.$001 !0.11.$00/ 0$.01.$001 0!.0!.$00/ 01.10.$00! $8.11.$000 $ .08.$000 0/.08.$00/ 1".0".$001 $0.03.$001 *52+32*++, +42+12*++, $1.0".$00! $1.1$.$000 13.10.$000 !0.11.$001 $0.0/.$000 !1.0 .$00/ !0.03.$000 1".10.$00! 1/.0 .$001 0!.01.$001 0!.1$.$001 !1.01.$001 01.10.$00$ $".03.$00$ $/.0".$00/ 1/.11.$00! !1.1$.$00$ !0.08.$00$ 0".0".$00! 0$.0".$001 01.1$.$00! 11.01.$000

6vercapacity 6vercapacity 6vercapacity 2ar'et 2ar'et 2ar'et R>D R>D 4roduct 2ar'et 2ar'et 6vercapacity 6vercapacity 6vercapacity 2ar'et 2ar'et Convergence 6vercapacity 6vercapacity 6vercapacity 4roduct %eographic 6vercapacity 6vercapacity 2ar'et 4roduct %eographic %eographic %eographic 4roduct 4roduct 4roduct %eographic 6vercapacity 2ar'et 6vercapacity 2ar'et 4roduct R>D 2ar'et 4roduct %eographic %eographic %eographic 2ar'et %eographic 6vercapacity 2ar'et 2ar'et 4roduct

7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 d 7 7 7 7 7 7 7 7 7 7 7 d 7 d 7 d 7 7 7 7 7

18"/#0 Taylor =oodroB plc 1 0 81 Tele$ A& " 380 Tele$ A& 101 0# Tele$ A& 1#1133 Tele$ A& 10!"83 Teleca A& "3!80 Tele8ona'tie,olaget L2 Ericsson "$1#! Telelogic A& 8338" Telenor ASA #0/## Telia A& 1$"$0! TeliaSonera A& /831 Tesco plc 1!!1!! Tesco plc 1$$ 1! $ Tesco plc !! Tesco plc

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3!3## )oda8one Airtouch plc 1"83#! )oda8one %roup plc "# // )oda8one %roup plc 31$/! )olvo A& 10$0$" )osper Thornycro8t *oldings plc 803#3 =aste Recycling %roup plc 10 /"$ =ecan Electronics 6y@ 1133#" =est,ury plc 1#000 =hit,read plc

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/83 "$3 "10 "/ /0$ /#8 ! 8 $03 /!0 3/ 8"/ "0 3/ 3!3

11!30/ =olseley plc $/3388 =olseley plc $!$0!/ =olverhampton > Dudley &reBeries plc 31#13 =44 %roup plc #3$$" =44 %roup plc 113 #! =44 %roup plc 8#/!! =S4 %roup plc " !1# =yevale %arden Centres plc 101#8 =?rtsil? 6y@ A,p

%& %& %& %& %& %& %& %& (5 %& %& %& %& (5

Clayton Acquisition Company &roo's %roup Ltd =iHard 5nns Ltd Aoung > Ru,icam 5nc. Tempus %roup plc Cordiant Communications %roup plc 9aco,son > =idmar' A& Country %ardens plc 9ohn Crane+Lips Druid %roup plc Canta, 4harmaceuticals plc 252 *oldings Ltd Las &am,as copper pro@ect

US 5E %& US %& %& SE %& %& %& %& AU 4E

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18.0/.$00$ !0.0".$00/ 1/.03.$00/ 1$.0 .$000 $0.08.$001 1#.03.$00! 11.0 .$001 $ .0#.$000 !0.01.$00$ 1".01.$000 1#.0$.$001 0".0/.$00! !1.08.$00/ 0/.0".$00!

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4roduct 4roduct %eographic %eographic 2ar'et 4roduct 2ar'et 6vercapacity 4roduct Convergence R>D 6vercapacity 4roduct Convergence

7 7 7 7 7 7 d 7 d 7 7 7

3100# Cansa plc 8/1$" Cenova %roup plc 1!8!#/ Cstrata plc 181 "$ Cstrata plc 1"3"1# A5T+Ahtym? 6y@

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Append"- 8: .otal l"#t o/ deal# - Account"n& F"&ure#2

Acquiror Deal No /03 1$/ 83 Acquiror name country code %& (5 D; N6 %& %& %& %& %& %& %& %& %& (5 %& %& %& %& %& %& %& %& %& %& %& SE %& %& %& %& SE SE SE SE %& %& %& SE %& %& %& %& %& Target name Deutsche Tie8,ohr A% De7ter Corporation<s nonBoven+ materials ,usiness Damps'i,ssels'a,et A( 1#1$ AS 6lympia Capital ASA Stiell Ltd ;ennedy Utility 2anagement Ltd 5nterpharm %roep Dudley Taylor *oldings<s # pharmacies &uena )ista =inery 5nc. ;uemmerling %m,* %* 2umm > Compagnie 4ennine Retail *oldings Ltd Agra 5nc. 4recor 5nc. Trimar' (inancial Corporation 4erpetual plc National Asset 2anagement Company 4ell Rudman > Co 5nc. Aguas 4uerto 2orrison plc Shell Coal *oldings Ltd Target country All Deal values Accouncement code th EUR DE 18"-/0$.#$ Completion data !1.08.$001 data 0$.10.$001 Strategy 6vercapacity Listed or not listed 7

#"$# A,,ot %roup plc 33 #$ Ahlstrom 4aper %roup 6y 1//!8 A'tiesels'a,et Dams'i,ssels'a,et Svend,org $3"#!/ A'tiv ;apital ASA 10#3!3 Al8red 2cAlpine plc 83 !! Al8red 2cAlpine plc " 8/1 Alliance Unichem plc 10/0 #$#0 Alliance Unichem plc Allied Domecq plc

US D; N6 %& %& NL

$#$-

!.$0

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6vercapacity 6vercapacity 6vercapacity 4roduct 6vercapacity 2ar'et

n 7 7 d d

3- 10-!8#.!" 1"8-3/ ."# 1/0-" .0

" 3 /38 8"" $18 //3 888 /0" $33 813 /# /8 131 $!0 $#1 !/# #8 1" "3 /# 38" 83" 8!0 $0/ 8# #!1 "3/ 11 !$ //0 /#1 $/$ #/0 "/ "0# "0$ !1 8"! "!$ #1# "30

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%& US DE (R %& CA US CA %& US US CL %& AU

108- $!./$ # -#1!.#0 $0!-/#/.1" " -000.00 #8-!30."0 //!-3!$. " 180-000.00 1-# #-3/ .81 1-"13-$/".1/ !!/-"/0.00 $$/-3/0.00 1/!-/1$.0" /!3-##0.18 # -313.#0

1$.1$.$001 *12+32*++, 0/.0#.$001 1!.1$.$000 18.0$.$000 13.0$.$000 0/.10.$00$ $ .0".$000 1#.10.$000 01.0!.$001 $".0/.$001 03.0".$000 $/.08.$000 !1.0 .$000 0$.0 .$00$ 10.1$.$00! *,2,*2*+++ !0.0 .$000 $".0#.$000 13.0 .$00! 11.1$.$00! $!.08.$00/ $/.01.$000 +52+42*+++ $0.0#.$001 $#.0/.$00$ 03.11.$000 0#.0!.$00/

1$.1$.$001 4,2,*2*++, 0/.0#.$001 01.01.$001 18.0$.$000 1!.0/.$000 01.11.$00$ $0.11.$000 0/.1$.$000 1#.0/.$001 $".0/.$001 03.0".$000 03.10.$000 $".0".$000 1!.11.$00$ 1$.0$.$00/ *,2,*2*+++ !0.0 .$000 1#.1$.$000 13.0 .$00! !0.1$.$00! $/.1$.$00/ 1".0$.$000 4,2+62*+++ $8.11.$001 01.0".$00$ 03.11.$000 03.0 .$00/

4roduct %eographic 2ar'et 4roduct 4roduct 4roduct 4roduct 2ar'et 4roduct 4roduct 4roduct 2ar'et Convergence 6vercapacity 6vercapacity 6vercapacity %eographic 4roduct 6vercapacity 6vercapacity 6vercapacity R>D 6vercapacity %eographic 2ar'et 4roduct R>D 2ar'et

d d d d n n n n n n 7 7 7 n n n 7 7 7 7 -

#"!3# Allied Domecq plc "#88/ Allied Domecq plc 33#! Alphameric plc #/$/ Amec plc 1!$/!# Amer+yhtym? 6y@ "$ ## Amvescap plc "38!1 Amvescap plc 8$1!1 Amvescap plc 88"81 Amvescap plc 3/0/0 Anglian =ater plc "!$ ! Anglian =ater plc 3$$8# Anglo American plc 11 1 # Anglo American plc $1$ 13 Anglo American plc 80/3# Anite %roup plc 31 /# Anite %roup plc " $#3 A4 (astigheter A& 1/"!$8 Aquavit plc 1##!$1 Archant Regional Ltd $"$#$0 AR2 *oldings plc ##3 Arriva plc ""$1 Assa A,loy A& 10!/"" Assa A,loy A& 11/ 8# Assa A,loy A& """ 0 Assa A,loy A& $!1$08 Associated &ritish (oods plc 1!#831 Associated &ritish (oods plc $!0803 Associated &ritish (oods plc $$"$/1 Atlas Copco A& 8 3#! Autologic *oldings plc 8!#31 &a,coc' 5nternational %roup plc $ $333 &AE Systems plc 1/8818 &AE Systems plc $"1#8$ &archester *ealthcare Ltd

Compania 2inera Disputada de Las CL Condes Limitada Roman &auern8eind *olding A% Calculus Solutions Ltd Datavance %roup SAS Dios+Anders Dios A& Atlantic =ater Ltd AT %& (R SE %&

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5ndependent NeBs and 2edia Ltd<s %& North London division Artisan Components 5nc. 2TL Services plc Aale loc's ,usiness Tesa *ardBare &esam A& *ughes 5denti8ication Devices Unilever %roup<s 2e7ican 8ood oils and 8ats ,rands Novartis A%<s 8ood and ,everage ,usiness Tone &rothers 5nc. 5ngersoll+Rand Drilling Solutions A7ial Logistics Ltd *unting De8ence Services Alvis plc 2evatec Corporation =estminster *ealthcare Ltd US %& %& ES : 2C SE US 2C

C* US &2 : US %& %& %& US %&

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$#.11.$00$ 0!.0#.$00/ 1!.10.$00/ +72+32*++, 0#.0!.$001 $!+0#+$00/ $/.0!.$00! !1.10.$00/

6vercapacity 6vercapacity 4roduct %eographic 6vercapacity 4roduct 4roduct 6vercapacity

7 7 7 n

#!"

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811/ &&A %roup plc $3/$#! &&A %roup plc 8 #10 &en8ield %reig Ltd ##"08 &% %roup plc $03#0# &% %roup plc $$8310 &% %roup plc "!/$# &illiton plc 8001 &odycote 5nternational plc 1"0"0" &oliden A& "8! &4 Amoco plc 80!8! &4 Amoco plc #!!88 &4 plc 3/ !! &4& plc 1103$$ &4& plc 81!$ &ra'e &ros plc 10!! $ &ritish %as Trading Ltd 1$3/00 &ritish %as Trading Ltd $83831 &ritish Land Company plc- The 83"8" &ritish Land Company plc- The

%& %& %& %& %& %& %& %& SE %& %& %& %& %& %& %& %& %& %&

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#0-81#."0 130- $#.!# $0#-33$."0 /00- 0 .00 $80-!8 .$8 11$-3$".3 1-#31-180.1! 138-! #.3$

01.0!.$000 11.0 .$001 13.0/.$001 0!.10.$001 13.0$.$00/ 1#.0$.$00/ $ .08.$000 1/.1$.$000

01.0!.$000 11.0 .$001 $#.0 .$001 1/.0$.$00$ $/.0!.$00/ !1.0!.$00/ $#.11.$000 18.01.$001

Convergence 6vercapacity 6vercapacity 6vercapacity 6vercapacity 6vercapacity 6vercapacity 6vercapacity

7 7 7 7 7 7 7

Aircra8t Service 5nternational %roup US 5nc. E= &lanch *oldings- 5nc. Enron 6il > %as 5ndia Ltd El 4aso 6il > %as Canada 5nc. 2auritania *oldings &) Rio Algom Ltd Lind,erg Corporation 6uto'umpu<s mining and smelting operations Bithin Hinc and copper &urmah Castrol plc Solvay SA<s polypropylene ,usiness Cairns Ltd Celote7 Corporation<s Ball,oard and ceiling tile ,usinesses 9ames *ardie 5ndustries N)<s US Ball,oard ,usinesses 2>9 Sea8oods F=holesaleG Ltd Enron Direct Ltd Electricity Direct FU;G Ltd Spirit %roup Ltd<s 3 pu,s $$ *ome,ase Ltd do+it+yoursel8 stores Sports 5nternet %roup plc %roupe 4ierre Le %o88 464 4oint o8 4resence %m,* E7odus Communications 5nc.<s assets La Casera SA =arner Lam,ert FAdamsG de 2e7ico Snapple &everage Corporation 48iHer 5nc.<s Adams division Dandy A:S 6rangina SchBeppes SAS 5R% plc )estcap 6y@ &rand+Re7 Ltd 6pal Telecommunications plc US 5N CA NL CA US

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7 7

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7 7

US US %& %& %& %& %& %& (R DE

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01.03.$000 1!.0!.$00$ 1!.0!.$000 0/.1$.$001 03.08.$00$ *+2,+2*++) $ .0!.$001 13.0 .$000 10.0 .$00/ 18.0".$000

01.0".$000 $ .0/.$00$ $0.0!.$000 0!.0/.$00$ 03.08.$00$ *+2,+2*++) 03.0/.$001 0$.10.$000 10.0 .$00/ $3.0".$000

6vercapacity 6vercapacity 4roduct 6vercapacity 6vercapacity %eographic 4roduct Convergence 2ar'et 4roduct

d d d n n 7 7 7 7

38888 &ritish S'y &roadcasting %roup plc %& $/ #"/ &unHl plc 338#/ Ca,le > =ireless plc 1001 0 Ca,le > =ireless plc 8#$!$ Cad,ury SchBeppes plc 1/"#31 Cad,ury SchBeppes plc "/ #$ Cad,ury SchBeppes plc 111! 0 Cad,ury SchBeppes plc 11!"33 Cad,ury SchBeppes plc " 13 Cad,ury SchBeppes plc %& %& %& %& %& %& %& %& %& %& (5 %& %&

US ES 2C US US D; (R %& (5 %& %&

-/ 0.00

!0.11.$001 *)2+52*++, +,2+)2*++4 18.0#.$000 1 .1$.$00$ $".03.$00$ $1.0#.$001 1$.0/.$000 1#.0/.$000 03.0!.$000 03.11.$00$

03.0!.$00$ 4,2,*2*++, +,2+)2*++4 $3.10.$000 !1.0 .$00! $".03.$00$ !1.10.$001 !0.0/.$000 1#.0/.$000 !1.0!.$000 03.11.$00$

4roduct %eographic %eographic 4roduct 4roduct 4roduct 6vercapacity 4roduct 2ar'et 4roduct 4roduct

7 7 7 -

11"-000.00 /-000-000.00 1-"$ -""#. 8 !-8#0-880.00 !1$-3"!./8 "00-000.00 13#-/#1. 0 11#-000.00 $!"-"0/.#0 138-81$.$3

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88! 3$ "!

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%& %& %&

Cellcom Ltd Dynegy Storage Ltd

%& %&

8#-1 $. ! /#"-$ 1.10 $1$-$ .11

$ .0 .$001 1/.11.$00$ 08.03.$00/ 01.10.$00/ 0!.0".$001 03.0".$000 $8.01.$00$ 1".0/.$00$ $$.0/.$00/

$ .0 .$001 1/.11.$00$ 08.03.$00/ 01.10.$00/ 0!.0".$001 $$.08.$000 0".0 .$00$ $/.1$.$00$ 0$.03.$00/

4roduct 4roduct 4roduct 4roduct Convergence 6vercapacity 6vercapacity 6vercapacity 6vercapacity

7 7 7 7

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# 1 88 1"! / " /8" "$0 $ " /1/ $## !0$

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8!-#$1.$# #3-"1!.1$ 388-#$ .8$ 3#/-!"".1 1/$-$"".00 113-813."0

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100- $8.#/ 1$#-!/ .1#

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4roduct 2ar'et

SSL 5nternational plc<s incontinence %& products unit 2orrison 2anagement Specialists 5nc. Selecta %roup A% US C*

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+32+*2*++, ,*2+*2*++,

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%eographic %eographic

!#$ !## "$ 31 // $ /00 38$ 8## /"# $00 ! / !$! "08 /#3 /0! 80! #01 /#/ $ 1 #03 !88 $3" !1! "" !3! !"# /8/ 3$" !13 /3" /$$ !"/ 3$1 8/# 81/ 1/ $3 "/3

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%& %& %& %& %& %& D; D; D; %& %& %& %& %& %& N6 (5 %& SE SE %& SE SE SE %& %& %& %& %& %& SE %& %& %& SE %& (R : %& %& %&

)endepac Ltd Crothall Services %roup %E CompuNet F%ermanyG A% AC*E2 Laminates Uniq<s St 5vel Spreads ,usiness Unigate plc<s dairy and cheese ,usiness %ermantoBn 5nternational Ltd

%& US DE CN : T= %&

1/$-"38.!0 183- #$.00 18 -"1"."3 1/$!.$0

*42+52*++, 0".08.$001 *62,,2*++* $".0/.$000 $#.0#.$00$

*42+52*++, !1.08.$001 +*2,,2*++4 !0.03.$000 01.11.$00$

%eographic 4roduct %eographic 2ar'et 4roduct

7 7 7

1!#!#0 Computacenter plc 303$# Coo'son %roup plc 1!1"83 Dairy Crest %roup plc # !1 Dairy Crest %roup plc #31 3 Danisco A:S $11101 Danisco A:S 11 !!1 Danisco A:S 111/3# Davis Service %roup plc- The " 13# Dimension Data *oldings plc 8#!! Dimension Data *oldings plc 83/" Dimension Data *oldings plc $!0003 DS Smith plc 11 !1$ Easy@et plc #3!8 ED& &usiness 4artner ASA !//""$ Elcoteq NetBor' 6y@ 1$ 00 Electra 4artners Europe Ltd

1!3-" /.1#

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!#8-!0 .10 10#- 30.00 !$0-000.00 80-"0!./0 38#-"10. $ $ !-0"#.1! 1#-#/8.80 1 /-808./0 $ !-"!".83 #8-310. " !03-3/$.$" 100-000.00 D " 000.00 18"-0$#.$8 $#!-1 /.3$ #0000.00 100-#1$."3 1$0-0/8.8/ 1!/-#3".$" 1#8-!!!.!0 /$/-# !./! //3-118."3 1-!81-31#.1/ !-/3!-$8#.$1 !3/-/#8. ! D 11/- "0.$$ 1!1-1#/.!! 11$-8"1.30 1/1-# /.03 #"-1#/.10 "3-!#!./0 01-8!/.33 1$1-$/#.10 11$-$ 0.!$ /1 -/$ . 0 !1 -"00.1/

$".0/.$000 1 .08.$001 0 .0$.$00/ 0".0 .$00$ $$.0!.$$0$ $".0#.$000 0".0 .$001 1#.0!.$001 !1.0!.$00/ 13.0 .$00$ $/.0$.$000 1 .11.$00! 1#.0".$00$ 0$.0 .$00$ $0.11.$000 0$.0/.$00! +42+12*++, 1!.1$.$000 1$.0!.$001 ,32+72*+++ **2+72*++, ,62+32*++, ,*2+)2*++* ,*2+42*++) ,72+42*++, ,62+*2*++* $$.10.$001 $8.03.$001 $8.0/.$00! $1.0#.$000 1 .1$.1### 0".0!.$000 01.08.$00$ 0$.0".$001 1 .03.$000 $!.1$.$00$

1#.0".$000 1 .08.$001 01.03.$00/ 0".0 .$00$ $/.0 .$00$ 01.11.$000 1 .03.$001 !1.1$.$001 $$.0!.$00/ 01.08.$00$ 01.0/.$000 !1.1$.$00! 1#.0".$00$ 0$.0".$00$ $3.0$.$001 !0.03.$00! ,+2+12*++, $ .01.$001 !1.0 .$001 ,,2+52*+++ ,*2+32*++, +72+52*++, *)2+72*++* 4,2+42*++) ,52+)2*++, +,2+42*++* !0.11.$001 10.08.$001 0$.0".$00! 1".11.$000 01.0$.$000 !0.0 .$000 0#.0#.$00$ 0#.0".$001 0/.08.$000 0/.0/.$00!

6vercapacity 2ar'et 4roduct 6vercapacity 2ar'et 2ar'et 4roduct R>D 2ar'et 4roduct 4roduct 4roduct 4roduct 4roduct 6vercapacity 6vercapacity %eographic 4roduct 6vercapacity %eographic %eographic %eographic %eographic %eographic %eographic %eographic 4roduct 6vercapacity 2ar'et 2ar'et 4roduct 2ar'et 4roduct R>D 2ar'et 2ar'et

7 7 7 7 7 7 7 n 7 n 7 7 7 d n n n n d n n

Rhodia SA<s 8ood additives division (R 4erlarom SA Sophus &erendsen A:S Time&ridge Technologies 5nc. 4ro7icom 5nc. 4remier Systems 5ntegrators LLC Linpac Containers Ltd %6 (ly Ltd (ellesdata AS Tella,s 6y<s manu8acturing operations in Espoo NeBhill Ltd Diamant &oart 5nternational Email Ltd<s household appliance ma'ing unit E7celsior 4u,lications SA Dire'tia Ltd =er lie8ert BasO %m,* 4anorama 4ols'a SBalloB<s 5nns and Restaurants 2organ %ren8ell 4rivate Equity<s /!# pu,s Scottish > NeBcastle plc<s /!$ pu,s Laurel 4u, %roup Ltd Unique 4u, Company plc (C Coughlin %roup Amplion (astigheter A& Unipoly Ener'a *oldings U; Ltd &entalls plc Le7 *arvey Ltd &ulten A& *oliday *ypermar'ets F1##8G Ltd Du88 > 4helps Credit Rating Co 6mega =orldBide 5nc. &ristol+2yers Squi,, Company<s Estrace ta,lets hormone replacement therapy ,usiness Liggett+Ducat Ltd S2% 4u,lishing Ltd Al8red 2cAlpine *omes *oldings Ltd Laing *omes Ltd Emig A%<s 8ruit @uice ,usiness 2aquet A% Siemens 2edical Solutions<s Li8e Support Systems ,usiness unit &E D; US US US %& %& N6 (5 5E &E AU (R (5 DE 4L %& %& %& %& %& US SE %& %& %& SE %& US US US RU %&

11/#$/ Electrolu7 A& "8 01 Electrolu7 A& 1!$00# Emap plc #$8/8 Eniro A& "##08 Eniro A& 8 "! Eniro A&

3$"83 Enterprise 5nns plc #00## Enterprise 5nns plc #$11" Enterprise 5nns plc 11!$1# Enterprise 5nns plc 138$#! Enterprise 5nns plc 8 88 E7el plc 108 8 (astighets A& Tornet

100"#3 (enner plc #133/ (enBic' Ltd 13! #! (inning U; Ltd "/#8# (innveden A& 3$# (irst Choice *olidays plc

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11 /8$ !#3 !" $8! 8 " 30/

3 3! %allaher %roup plc 11!0/1 %annett U; Ltd # 18! %eorge =impey plc #13#1 %eorge =impey plc 8081" %er,er (oods *oldings Ltd "8/08 %etinge A& 1 //#$ %etinge A&

%& %& %& %& %& SE SE

%& %& DE DE SE

"!#- ##. 1 /3#- /#.0 10!-"#$.$ #1000.00 180-000.00

1/.08.$001 13.10.$00$ $0.1$.$000 1".11.$000 1 .08.$00!

01.10.$001 01.11.$00$ 0#.0$.$001 01.01.$001 0#.10.$00!

2ar'et 4roduct 6vercapacity Convergence 6vercapacity

d d n 7

8/8 31 1!3 $1" /08 /33 /

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%& %& %& D; %& %& %&

Nissan 2otor Co.- Ltd<s drive sha8t operations &ett plc Smith'line &eecham plc *ello Direct 5nc. 6ld English 5nns plc 2orrells o8 678ord Ltd Laurel 4u, Company Ltd<s /!$ pu,s Sa8etynet %roup plc Chu,, Sa8es %roup *ome,ase Ltd Synaptic 4harmaceutical Corporation )i'en Energinett AS =( Electrical plc &ureau D<Electronique Appliquee SA %rantchester *oldings plc RT %roup Developments Ltd Davon 5nc ChoctaB 5nc. &etter 2aterials Corporation Tech4artners 5nternational Limited Scottish 2etropolitan 4roperty plc E4S Ltd &roBn > Sharpe 2anu8acturing Company<s metrology ,usiness Colum,us %roup plc<s magaHines division Scandic *otels A& Lyric' Corporation ;uoni Reisen *olding A%<s &T5 Central Europe ,usiness travel division 4apelera 4eninsular SA *ighBay Emergency Services Ltd )asaterminalen A& Technal SA Alpart alumina re8inery Cunningham Communication 5nc. Degussa A%<s 4henolchemie unit Taylor > (rancis %roup plc *uon *oldings Ltd 2T= Corporation &aan Company N) (oreign > Colonial 5nvestment Trust plc Tore7 plc 2>2 2edical Eurogestion

94 %& %& US %& %& %& %& %& %&

#/-/8$.88 1!!-0/!."# 3#-3! -/!!.0# 10#-3#3. 0 13/-#33.// 10/-#" . # #8#-! 0.#" $"/-1#!. 0 1/0-01#. / 1-/1!-3#8.08

03.08.$000 0#.0/.$00! ,52+,2*+++ +72,+2*+++ +52+12*++, ,62+32*++* +62+52*++) 1/.03.$000 10.08.$000 $1.11.$00$

01.11.$000 $/.03.$00! *52,*2*+++ *)2+)2*++, *)2,+2*++, ,62+32*++* +32+62*++) 1/.03.$000 01.0#.$000 18.1$.$00$

4roduct 2ar'et %eographic %eographic %eographic %eographic %eographic 2ar'et 6vercapacity 6vercapacity

n 7 7 n 7 n

10! 1 # 3# "1 ! # 111 #08 /$ #1/ $8/ 0" 31# 8$" 3$ 8/1 $ $ 8!"

3/ 03 %uardian 5T plc "$!0" %unne,o A& 1!8$"0 %US plc 1!8/ # * Lund,ec' A:S 8#/! *a8slund ASA 3 1/1 *agemeyer U; Ltd 1!!""3 *alma plc 1$#"!/ *ammerson plc 1/$""$ *ammerson plc 80#/0 *anson plc 1180 $ *anson plc 13$!!3 *anson plc 30$1 *arvey Nash %roup plc

%& SE %& D; N6 %& %& %& %& %& %& %& %& %& %& SE

US N6 %& &E %&

110-/1$. 0 /1!-1$ .08 1!"-#0!.$0 # 000.00 !0 -!03.1$ #$- !/.0

$1.11.$00$ 1!.0".$001 ,42+32*++ 13.10.$00$ 0#.0#.$00$ $".1$.$00$ 0/.01.$001 $#.0 .$00$ 13.0/.$00! $ .0/.$000 *52+)2*+++ *,2+,2*+++ 1".11-$000 $3.03.$000 $!.0/.$001 0#.0$.$001

03.0!.$00! $0.0!.$00$ *72+62*+++ 13.10.$00$ $1.10.$00$ $8.0$.$00! 0/.01.$001 $#.0 .$00$ 18.0".$00! $ .0/.$000 ,)2+52*+++ *,2+,2*+++ !0.0/.$001 0!.08.$000 $1.0 .$001 03.0!.$001

R>D 4roduct %eographic R>D 4roduct 6vercapacity 6vercapacity 6vercapacity 6vercapacity 2ar'et %eographic %eographic Convergence 6vercapacity 6vercapacity 2ar'et

7 n n n n 7 7 n d

US US US %& : US %& %& US %& SE US

10 -$$1.13 1/ -!38.00 1!8-!38. 0 8$-!33."8 1"3-8$#.$" 8#- !$.80 $0$-!!8.00 80-3/ .$0 ## -$!/.80 $#/-!!$. 0

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%& %& %& %&

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$$3-81!./8 D $//-0/$.30 10!-0" .3! 10/-11#.1# 110-" 3.!3 $ 8-!!1. 0 8!-08/.08 /$$-000.00 8/#-/1 .30 $# - 03. 3 # " 1.00 "3$-000.00

0 .1$.$00! 03.0/.$000 0 .0".$00$ 01.01.$000 !0.10.$001 $$.01.$00/ $3.0".$000 0/.0/.$001 +*2+42*++) 1".0 .$001 03.0".$001 !1.0 .$000 0$.0".$00/

!0.01.$00/ 1!.0".$000 0 .0".$00$ 01.01.$000 $ .01.$00$ 01.0".$00/ $/.08.$000 18.0 .$001 ,+2+72*++) 1".03.$001 18.0".$001 !0.08.$000 11.10.$00/ $!.01.$00/ ,*2+52*++, $!.0/.$00$

2ar'et 6vercapacity 4roduct 4roduct 6vercapacity 6vercapacity 6vercapacity 4roduct %eographic 2ar'et R>D 4roduct 4roduct 2ar'et %eographic Convergence

n 7 n n n 7 n 7 7 d n n

1!$ $0 808 / 3 0 8/3 !!3 "0" !0! 883 1/8 "// 3/1 88# 8!

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SE %& SE N6 N6 %& %& %& %& %& %& %& %& D; D;

1-$/3-33#.1$ D %& SE (R /8#-8/ .0 #$-!0$.0/ 1 -000.00 $ .0#.$00! ,*2+52*++, $!.0/.$00$

83 8 "0 !81

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D; %& %& %&

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NL %& %& %&

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$0.0$.$001 !0.0/.$000 *32+12*+++ 0#.08.$001

6vercapacity Convergence %eographic 2ar'et

n 7 n 7

0# /" /"! /8! //" $// $"" "#0 #11 1"3 "3! # !0 3 1 !!1 1!1 "# "/# /1$ 18/

118 / 9ohnson 2atthey plc #18 9ohnson Service %roup plc 110 18 9ohnston 4ress plc 11!0 # 96T Automation %roup 6y@ 10/$" ;emira 6y@ "811$ ;emira 6y@ 80 // ;ing8isher plc

%& %& %& (5 (5 (5 %&

Syneti7 Ltd Semara *oldings plc Regional 5ndependent 2edia *oldings Ltd Ele'tro,it 6y )inings 5ndustries Alcro+&ec'ers A& $8 non+trading store development sites 6mnetica Ltd %lasto *olding &) 5nstrument Specialities Co 5nc Centurion =ireless Technologies 5nc. =2 Amparistopalvelut 6y Auto =indscreens Ltd )ictoria Centre 4artnership- The Railtrac' FU;G Ltd Strand 4alace *otel Corus > Regal *otels plc Northern Leisure plc 4er Una E7change (S %roup plc 2almaison *otel Ltd<s properties and ,usiness *otel du )in Ltd Alliance > Leicester plc<s credit card ,usiness A,,ey National plc<s retail credit card assets )endcroBn Ltd

%& %&

/11-0 !.0/ 130-!!#.00

$!.0#.$00$ $8.01.$000

01.11.$00$ $0.0/.$000

4roduct 6vercapacity

%& (5 US SE %& %& NL US

#10-$8 .!8 130-000.00 130-8!#.00 $00-000.00 !/#- 33.31 $!8-3$/.31 "3000.00 !!3-!3$.3!

1$.0!.$00$ 11.0/.$00$ 1".1$.$001 0".11.$000 $$.1$.$000 !0.11.$00/ 1!.1$.$00$ 0".08.$000

1$.0!.$00$ 1 .0 .$00$ !1.01.$00$ 1$.0$.$001 $$.1$.$000 !1.1$.$00/ $0.01.$00! $3.08.$000

6vercapacity Convergence 2ar'et 4roduct 2ar'et R>D 6vercapacity Convergence

7 n 7 7 7 7

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US (5 %& %& %& %& %& %& %& %& %& %&

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$!.08.$00/ !1.01.$000 !0.0!.$001 +12,,2*++* $".03.$00$ $8.0!.$001 11.0".$000 13.0 .$000 1!.0".$00/ 1#.0#.$001 !1.08.$000 +)2,+2*++)

0 .10.$00/ $8.0/.$000 !0.0!.$001 +12,,2*++* 0!.10.$00$ $8.0!.$001 1".10.$000 11.0".$000 0 .10.$00/ 0 .11.$001 10.0#.$00$ +)2,+2*++)

Convergence 6vercapacity 4roduct %eographic 4roduct 4roduct 4roduct 4roduct 4roduct 4roduct %eographic %eographic

7 7 d 7 n n n d -

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%& %& %&

! 3-8# .!/ /3!-8#/.1/ $30-!/!.3! 30 - "3.$8

$3.0".$00$ 1#.0!.$001 $8.01.$00/ 0 .0".$00/

$#.0".$00$ 1#.0!.$001 $8.01.$00/ $ .08.$00/

4roduct 6vercapacity 6vercapacity 4roduct

n n n -

83/

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1 11" 1$0

3$

2er'antildata ASA

N6 (5 (5

Dunlop Standard Aerospace %roup %& Ltd<s Design > 2anu8acturing ,usinesses Avenir ASA N6 Svedala 5ndustri A& 2oDo 4aper A& SE SE

1-"!/-000.00 1-3/#- "8.80 1-300-000.00

$8.0$.$000 *,2+32*+++ 01.03.$000

0 .0 .$000 ,,2+12*++, 0#.08.$000

4roduct %eographic 6vercapacity

3 830 2etso 6y@ 33/03 2ets?+Serla 6y

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%& SE %& %& %&

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4roduct 4roduct 4roduct

n -

&auern8eind<s corrugated paper and AT : &E : DE : pac'aging ,usinesses 5T : 4L %&

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10.0!.$00! $1.08.$00!

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6vercapacity 6vercapacity

n 7

3/8 !03 1$ / 8/ 1 3 188 /8# 83$ /#! !#" "1!

18 ""! 2ouchel plc 8/"/# 2Elnlyc'e *ealth Care A& 1$00$! National E7press %roup plc 0/ National E7press %roup plc 3!0#$ National E7press %roup plc "$13/ National E7press %roup plc "!8#" National %rid %roup plc- The 11/01" National %rid %roup plc- The "#/" NDS %roup plc

%& SE %& %& %& %& %& %& %& %& %& D;

4ar'man %roup plc 9ohnson > 9ohnson<s surgical products ,usiness Stoc' Transportation Ltd ATC %roup School Services > Leasing 5nc. 4rism Rail plc Niagara 2ohaB' *oldings 5nc. Lattice %roup plc 6r,is Technology Ltd Northern (oods plc<s S'i and 2unch &unch ,rands *C2S Ltd ALT6 5nternational A:S

2C CA US US %& US %& %& %& %& D;

11/-!/1. ! 11$-3!/.$0 1"/- #0.$0 $$"-8!!.!0 $ #-33/."3 10-!"$-# 0.00 10-!0/-081.3! 8#-3 1.3/ $!"-13#.3/ 1"3-##/.# 1$1-0//."$

1#.0$.$001 1".03.$00$ 0/.01.$000 !1.0 .$000 18.0".$000 0 .0#.$000 $$.0/.$00$ 01.1$.$000 !1.01.$00$ 0$.08.$001 0/.0 .$00/

1#.0$.$001 0#.0".$00$ 1/.01.$000 !1.08.$000 1".01.$001 !1.01.$00$ $1.10.$00$ 01.1$.$000 0!.0/.$00$ 1/.0#.$001 !1.0".$00/

4roduct 2ar'et 4roduct 4roduct 6vercapacity 6vercapacity 6vercapacity 4roduct %eographic 4roduct 4roduct

n 7 7 7 7 n n n

11/8 0 Nestle U; Ltd # !!3 Nestor *ealthcare %roup plc $!/$83 Nil8is'+Advance A:S

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$0# 3$ No,ia A& "$$00 No'ia 6y@ "# 1 No'ia 6y@

SE (5 (5 (5 (5 %& N6 N6 N6 N6

%oBer %roup Ltd DiscoveryCom 5nc Ramp NetBor's 5nc. Am,er NetBor's NetBor' Alchemy 5nc. Leap8rog Day Nurseries plc Technal SA )A= Aluminium A% =alsum paper mill (letcher Challenge 4aper Ltd Re,us *R %roup STS Systems Real Time Control plc

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01.1$.$00! !1.08.$000 $$.01.$001 $#.08.$001 03.0!.$000 !0.03.$00/ !1.01.$00$ 1 .0!.$00$ !0.11.$001 $8.0".$000 $!.01.$00/ $#.1$.$000 $3.0/.$000

4roduct 4roduct 4roduct R>D Convergence 6vercapacity 2ar'et 6vercapacity 2ar'et 6vercapacity 4roduct 2ar'et 6vercapacity

7 7 7 7 7 7 7 d n d

# 018 No'ia 6y@ 33 No'ia 6y@

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SE %& SE N6 (5 (5 (5 SE %& %& %& %& %& %& %& SE %& N6 %& %& %& %&

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$#.11.$001 1 .03.$000 03.10.$00! 01.0$.$000 $/.0/.$001 1 .08.$00$ $!.01.$001 !1.0!.$000 1#.0".$00$ 1!.03.$000 08.0#.$000

2ar'et 6vercapacity 6vercapacity %eographic 4roduct 6vercapacity 6vercapacity 2ar'et 4roduct 4roduct Convergence

7 n n n 7 7 7 d d 7 7

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08.0!.$000 $!.01.$00/ $/.01.$001 10.10.$000 10.10.$001

08.0!.$000 13.0!.$00/ 11.0/.$001 1#.01.$001 $".1$.$001

6vercapacity 6vercapacity 6vercapacity 4roduct 4roduct

7 7 7 n n

!!8-"#8."/ 8"1-10/.#$ 18"-#18.!/ 1! -30$.31

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1 !-3/ .0" $$!-#33.!/ /0"-10#. "

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4roduct 4roduct 4roduct

7 7 7

US US US %& ;R 5D US 5L %& US US US US US

10 -/8$.00 #"3!0.00 1!1-8##.38 "3-!#/.13 1!/-#!$.#1 "3-"/$.0 $/#-8 "./0 " -81 ./ /!$-$$/.11 /10-0"3.$0 18!-0/3. 0 80.30

1/.0#.$00/ 1/.0#.$00/ 08.0#.$00/ 0".08.$00$ 1$.0!.$001 $/.11.$000 13.0".$00/ $!.10.$00! $3.11.$00! !0.0/.$001 18.0$.$00! 0#.0 .$000 0$.0/.$000 1!.1$.$001

!0.0#.$00/ 10.1$.$00/ 0#.11.$00/ 0".08.$00$ 1$.0!.$001 $/.11.$000 $0.08.$00/ $!.10.$00! $3.11.$00! $8.0#.$001 $3.0!.$00! 0 .03.$000 $/.0".$000 $$.01.$00$

Convergence 4roduct Convergence 4roduct %eographic 2ar'et 2ar'et 2ar'et Convergence 2ar'et Convergence 6vercapacity 4roduct 4roduct

n n n n 7 n n 7 7 7 7 7

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1"0 1/ Re7am plc 1!!!#1 Re7am plc "8138 Rio Tinto plc

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Risdon 4harma SA Nien,urger %las %m,* Ashton 2ining Ltd

(R DE AU

1$ -000.00 103-1" .// /$1-3$1.$0

0/.03.$00! 1/.10.$00$ 10.11.$000

0 .08.$00! $#.11.$00$ $$.01.$001

4roduct 6vercapacity 4roduct

7 7 7

1"/ 1"# #$3 $0 !!0 #$8 /#" !#1 1$# 1"" $/ /3# 3 # 3"$ "$$ !/ $81 1$1 !8" 103 !/ $3$ 10/ //8 #/ 18! #/3 88$

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0!.08.$000 $8.08.$000 01.08.$00! 1$.01.$000 $8.0!.$001 1".0".$00! 13.03.$00$ $0.0".$001 01.08.$000 0".08.$000 !0.0#.$00$ !0.0".$00/ 03.10.$00! $8.0/.$00/ 0/.0 .$00/ 0$.03.$00/ $$.1$.$000 $8.03.$000 $#.03.$001 0 .03.$000 $3.01.$000 11.1$.$000 01.03.$000 1#.1$.$001 1!.0/.$000 $#.08.$000 0/.0 .$00/ 0#.0 .$001

10.10.$000 03.11.$000 1/.11.$00! $$.0$.$000 0$.0 .$001 $$.0#.$00! 0#.08.$00$ $0.0".$001 01.0#.$000 !1.10.$000 !0.0#.$00$ !0.0".$00/ 0".11.$00! $8.0/.$00/ 0/.0 .$00/ 0$.03.$00/ 08.0!.$001 !1.08.$000 10.0#.$001 !0.0#.$000 10.0!.$000 11.0 .$000 !1.0".$000 0/.0!.$00$ 0#.03.$000 0$.11.$000 08.0".$00/ 0#.0 .$001

6vercapacity 6vercapacity 2ar'et 4roduct 4roduct 6vercapacity %eographic 2ar'et %eographic %eographic 4roduct 6vercapacity 6vercapacity 6vercapacity 6vercapacity %eographic 2ar'et 2ar'et R>D 6vercapacity 2ar'et R>D 2ar'et Convergence 2ar'et 6vercapacity 4roduct 4roduct

7 7 7 7 7 7 7 d 7 7 7 7 7 d d n 7 7 7 7 7 n 7 7 -

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=estaim &iomedical Corp<s US and US Canadian &urns Dressing &usiness 6ratec 5nterventions 5nc 2idland 2edical Technologies Ltd &loc' Drug Company 5nc. *eimann Systems %m,* &arringer Technologies 5nc. 5ntegrated Aerospace 5nc. US %& US DE US US

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%& %& %& %& %& %& %& %& %& %& %& %& %& %& %&

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1/.0$.$00$ 1$.0!.$00/ 0#.10.$000 01.10.$001 0#.0!.$001 1#.10.$00/ 1 .0!.$00/ $3.0/.$00/ $$.0$.$000 18.0#.$000 $".0#.$000 !0.0 .$00$ 1".0".$00$ 1".10.$000 0".0#.$000

$$.0!.$00$ 0 .0 .$00/ 13.01.$001 0$.1$.$00$ 11.0 .$001 $/.11.$00/ 0/.0 .$00/ $3.0/.$00/ 08.0!.$000 0/.1$.$000 !0.10.$000 0#.0".$00$ 18.0#.$00$ 10.11.$000 01.08.$001

R>D R>D 4roduct 4roduct 4roduct 4roduct R>D R>D 4roduct 4roduct 4roduct 2ar'et 4roduct 2ar'et 4roduct

7 7 n 7 7 7 7 7 7 7 7

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%& (5 SE SE SE SE SE SE %&

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US US DE US US 5T NJ N6

1-"30-03$. 0 -0$ - 10.$0 1!1-000.00 #0/-## .00 10/-3/0.80 /"$-000.00 1-8!#.$1 $0"-3$!.// 111-83!.$0

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1#.1$.$000 01.0#.$000 !0.0".$00$ $$.01.$001 $1.11.$001 18.1$.$001 $ .0/.$00/ 01.0".$000 !0.0/.$00/

4roduct 6vercapacity 4roduct 6vercapacity 6vercapacity 6vercapacity 6vercapacity 4roduct %eographic

7 7 n n n n n n 7

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11.0".$00! $0.11.$001 0#.10.$000 13.0!.$001 13.01.$00/ 0!.10.$000 08.0!.$00/ !0.11.$001 1".0$.$00! 11.0$.$00$ $".11.$000 1$.0#.$000 1/.01.$001 0#.11.$00$ 11.10.$00/ 1#.0".$00$ 0#.01.$00! $3.01.$000 11.11.$00! !0.11.$00/ $ .08.$000 0/.08.$00/ 1".0".$001 $0.03.$001 $1.0".$00! *52+32*++, +42+12*++, 13.10.$000 !0.11.$001 0/.0".$000 !1.0 .$00/ 0!.01.$001 0!.1$.$001 !0.11.$00/ 08.08.$00/ !1.01.$001 01.10.$00$

2ar'et 4roduct 6vercapacity 6vercapacity 6vercapacity 2ar'et 2ar'et 2ar'et 6vercapacity R>D R>D 4roduct 2ar'et 2ar'et 6vercapacity 2ar'et 2ar'et 6vercapacity 6vercapacity 6vercapacity 6vercapacity 6vercapacity 2ar'et 4roduct %eographic %eographic %eographic 4roduct 4roduct 6vercapacity 6vercapacity 4roduct R>D 6vercapacity 6vercapacity 2ar'et 4roduct

7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 d 7 7 7 7 n 7 7 7 n n d 7

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$".03.$00$ $/.0".$00/ 0!.1$.$001 1/.11.$00! 08.0!.$00/ !0.08.$00$ 0$.0".$001 01.1$.$00! 11.01.$000 18.0/.$00$ !1.08.$00/ 0".0".$00!

%eographic %eographic 4roduct %eographic 6vercapacity %eographic 2ar'et 2ar'et 4roduct 4roduct 4roduct 6vercapacity

d 7 n d n 7 7 7 7 7 7

%& %& %& %& %& %& (5 %& %&

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%eographic %eographic 2ar'et

7 7

%& SE %& %& 4E

!81-/ 3.30 11$- / .0$ $1!-3/". 3 ! !- 3".!0 100-/0 .80

1#.03.$00! 11.0 .$001 $ .0#.$000 !0.01.$00$ !1.08.$00/

01.08.$00! $0.0".$001 08.11.$000 1 .0/.$00$ !1.08.$00/

4roduct 2ar'et 6vercapacity 4roduct 4roduct

7 7 d 7 7

AU : JA AU

$-8$/-" 0.00 $-8" -0#!.3#

$0.0$.$00$ 0".0/.$00!

$0.0!.$00$ !0.03.$00!

6vercapacity 6vercapacity

7 7

"0 3!3

1!8!#/ Cstrata plc 1"3"1# A5T+Ahtym? 6y@

%& (5

D; : EE : (5 : LT : L) : N6 : RU : SE

13#-$00.00

0/.0".$00!

$#.08.$00!

Convergence

Appendi$ %& E$ample of 'A' code (")test* used in relation to daily stoc+ prices,
.-te#t:
/*We start by creating a library called skrivb*/ libname skriveb 'C:\Documents and Settings\Louise Mller\skrivebord\' /*We im!ort our e"cel dataset into S#S and save t$is %ile in our library using t$e name &eog' ($is is t$e dataset )e use )$en estimating t$e betas as a result o% regressing t$e stock returns on t$e market returns'*/ data skriveb'&*+& set &*+& /*($is is t$e dataset containing t$e market returns in t$e relevant time !eriods to eac$ stock'*/ data skriveb'geogrm set geogrm /*($is is t$e dataset containing t$e individual stock returns'*/ data skriveb'geogra set geogra /*,ere )e start t$e -ML !rocedure using matrices in t$e calculations'*/ proc iml /*We )ant to use t$e dataset containing bot$ market returns and stock returns and )e add all t$e numbers in t$e matri" called .' -t is a /01"22 matri" due to t$e estimation !eriod o% (3/24 days and t$e event )indo) o% 5/6 2 days'*/ use skriveb'geog (3250 read all var 7num7 into . .3.81:2619: !rint . /*;o) )e estimate beta by creating a 22"/ matri" containing t$e al!$a and beta in t$e 22 regressions )e generate due to t$e 22 com!anies included into t$is grou!' #t t$e end )e also construct t$e t)o vectors # and < )$ic$ contains t$e al!$as and betas and are use later on in t$e calculations'*/ beta3=>559290? count30 do i31 to 110 by 2 @3=>(9291? A3=>(9191?

do B31 to ( i% abs>.8B9i:?C 0 t$en do count3count51 @8B9:3=>19191?DD.8B9i: A8B91:3.8B9i51: end end @3@81:count9: A3A81:count9: count30 beta8>i51?/29:3>-;E>@F*@?*@F*y?F end !rint beta #3beta891: <3beta892: Grint < Grint # /*,ere )e create t$e M matri" )$ic$ contains t$e market returns in t$e event )indo) in relation to t$e 22 com!anies'*/ use skriveb'geogrm (311 read all var 7num7 into m M3m8251:2619: !rint m /*<y use o% t$e #9 < and M matrices )e calculate t$e e"!ected return %or eac$ com!any at all 11 days in t$e event )indo)'*/ HMny3=>1195590? do i31 to 55 by 1 bet3<8i: HM3M89i: #l3#8i: HMny89i:3HM*bet5#l end !rint HMny /*,ere )e create t$e #I matri" )$ic$ contains t$e actual stock returns inside t$e event )indo) in relation to t$e 22 com!anies'*/ use skriveb'geogra (311 read all var 7num7 into #I #I3#I8251:2619: !rint #I /*;o) )e can calculate t$e #bnormal Heturn >#H?%or eac$ stock at all 11 days inside t$e event )indo)9 )$ic$ is t$e di%%erence bet)een t$e actual return and t$e e"!ected return'*/

#H3#I6HMny !rint #H /*<elo) )e calculate t$e Cumulative #bnormal Heturns >C#H?9 )$ic$ are t$e sum o% t$e di%%erent com!any's returns during t$e event )indo)'*/ C#H3=>195590? do i31 to 55 by 1 C#H89i:3sum>#H89i:? end !rint C#H C#H(3=>559190? C#H(3C#HF !rint C#H( create &eo#H1 %rom #H a!!end %rom #H create &eoC#H1 %rom C#H a!!end %rom C#H /*Jinally )e calculate t$e average #bnormal Heturns and t$e average C#H'*/ #Hmean3C#H/11 !rint #Hmean C#Hmean3sum>#Hmean? !rint C#Hmean /*We need to estimate t$e C#H variance be%ore )e can test )$et$er or not any #bnormal Heturns are generated' We start by generating t$e #H*S matri" containing t$e actual returns during t$e estimation !eriod and a%ter)ards t$e M*S matri" is generated containing t$e market returns during t$e estimation !eriod'*/ use skriveb'geogra (3250 read all var 7num7 into #I*S #I*S3#I*S81:2509: !rint #I*S use skriveb'geogrm (3250 read all var 7num7 into M*S M*S3M*S81:2509: !rint M*S /*<y use o% t$e #9 < and M*S matrices )e calculate t$e e"!ected return %or eac$ com!any during all /24 days )it$in t$e event !eriod'*/ HM*S3=>25095590? do i31 to 19 by 1 bet3<8i:

HM*3M*S89i: #l3#8i: HM*S89i:3HM**bet5#l end !rint HM*S /*&enerating t$e sKuared #bnormal Heturns during t$e estimation !eriod'*/ #ISL3>#I*S6HM*S?MM2 Grint #ISL /*Sum u! t$e sKuared error terms and %ind t$e estimated variance %or eac$ com!any'*/ Ear*rror3=>195590? do i31 to 55 by 1 Ear*rror89i:3>1/>25062??*>sum>#ISL89i:?? end !rint Ear*rror EarC#H3=>195590? do i31 to 55 by 1 EarC#H3>55551?*Ear*rror end !rint EarC#H EarC#Hmean3>1/>55MM2??*>sum>EarC#H?? !rint EarC#Hmean (obs3>C#Hmean/>EarC#Hmean?MM0.5? !rint (obs !value32*!robnorm>6abs>(obs?? !rint !value quit

Appendi$ -& E$ample of 'A' code (.an+* used in relation to daily stoc+ prices,
Ran0 te#t:
/*We start by creating a library called skrivb*/ libname skriveb 'C:\Documents and Settings\Louise Mller\skrivebord\' /*We im!ort our e"cel dataset into S#S and save t$is %ile in our library using t$e name &eog' ($is is t$e dataset )e use )$en estimating t$e betas as a result o% regressing t$e stock returns on t$e market returns'*/ data skriveb'&*+& set &*+& /*($is is t$e dataset containing t$e market returns in t$e relevant time !eriods to eac$ stock'*/ data skriveb'geogrm set geogrm /*($is is t$e dataset containing t$e individual stock returns'*/ data skriveb'geogra set geogra /*,ere )e start t$e -ML !rocedure using matrices in t$e calculations'*/ proc iml /*We )ant to use t$e dataset containing bot$ market returns and stock returns and )e add all t$e numbers in t$e matri" called .' -t is a /01"22 matri" due to t$e estimation !eriod o% (3/24 days and t$e event )indo) o% 5/6 2 days'*/ use skriveb'geog (3250 read all var 7num7 into . .3.81:2509: /*;o) )e estimate beta by creating a 22"/ matri" containing t$e al!$a and beta in t$e 22 regressions )e generate due to t$e 22 com!anies included into t$is grou!' #t t$e end )e also construct t$e t)o vectors # and < )$ic$ contains t$e al!$as and betas and are use later on in t$e calculations'*/ beta3=>559290? count30 do i31 to 110 by 2 @3=>(9291? A3=>(9191?

do B31 to ( i% abs>.8B9i:?C 0 t$en do count3count51 @8B9:3=>19191?DD.8B9i: A8B91:3.8B9i51: end end @3@81:count9: A3A81:count9: count30 beta8>i51?/29:3>-;E>@F*@?*@F*y?F end !rint beta #3beta891: <3beta892: /*,ere )e create t$e M matri" )$ic$ contains t$e market returns over 1M !eriod in relation to t$e 22 com!anies'*/ use skriveb'&eogHm (311 read all var 7num7 into m M3m8251:2619: /*<y use o% t$e #9 < and M matrices )e calculate t$e e"!ected return %or eac$ com!any at all 11 days during t$e event !eriod'*/ HMny3=>1195590? do i31 to 55 by 1 bet3<8i: HM3M89i: #l3#8i: HMny89i:3HM*bet5#l end /*,ere )e create t$e #I matri" )$ic$ contains t$e actual stock returns over 11 days in relation to t$e 22 com!anies'*/ use skriveb'&eogHa (311 read all var 7num7 into #I #I3#I8251:2619: /*;o) )e can calculate t$e #bnormal Heturn >#H?%or eac$ stock at all 11 days during t$e event !eriod9 )$ic$ is t$e di%%erence bet)een t$e actual return and t$e e"!ected return'*/ #H3#I6HMny /*We create a matri" t$at rank t$e e"cess returns created in t$e matri" above'*/

Hank#H3=>1195590? do i31 to 55 by 1 Hank#H89i:3rank>#H89i:? end /*We count t$e number o% times t$e it$ stock return is .ero in eac$ Bt$ ro)'*/ #Hnon3=>1195590? do i31 to 55 by 1 do B31 to 11 by 1 i% #I8B9i:C0 t$en #Hnon8B9i:30 else i% #I8B9i:N0 t$en #Hnon8B9i:30 else #Hnon8B9i:31 end end /*Counting t$e number o% missing stock returns in eac$ it$ column'*/ #Hcounti3=>195590? Do i31 to 55 by 1 #Hcounti89i:3#Hnon859i: end Hank#Hm3=>1195590? do i31 to 55 by 1 Hank#Hm89i:3Hank#H89i:/>15>116#Hcounti89i:?? end /*We subtract t$e average rank >one $al% !lus $al% t$e number o% observed returns?%rom t$e ranked e"cess returns'*/ Dsign3=>1195590? do i31 to 55 by 1 #HM3Hank#Hm89i: Dsign89i:3#HM60.5 end /*Counting t$e number o% missing stock returns in eac$ Bt$ ro)'*/ #HcountB3=>119190? Do B31 to 11 by 1 #HcountB8B9:3#Hnon8B95: end /*We calculate t$e standard deviation'*/ sumB3=>119190? aveB3=>119190? do B31 to 11 by 1 sumB8B9:3sum>Dsign8B9:? aveB8B9:3sumB8B9:/sKrt>556#HcountB8B9:? end Stddev3sKrt>>1/11?*sum>aveBMM2?? !rint Stddev /*Calculation o% t$e test statistic'*/

(obs3>>1/sKrt>55??*sum>Dsign8119:??/Stddev !rint (obs !value32*!robnorm>6abs>(obs?? !rint !value quit

Appendi$ /& E$ample of 'A' code ('ign* used in relation to daily stoc+ prices,
S"&n te#t:
/*We start by creating a library called skrivb*/ libname Skriveb 'C:\Documents and Settings\Louise Mller\skrivebord' /*We im!ort our e"cel dataset into S#S and save t$is %ile in our library using t$e name &eog' ($is is t$e dataset )e use )$en estimating t$e betas as a result o% regressing t$e stock returns on t$e market returns'*/ data Skriveb'&eog set &eog /*($is is t$e dataset containing t$e market returns in t$e relevant time !eriods to eac$ stock'*/ data Skriveb'&eogHm set &eogHm /*($is is t$e dataset containing t$e individual stock returns'*/ data Skriveb'&eogHa set &eogHa /*,ere )e start t$e -ML !rocedure using matrices in t$e calculations'*/ proc iml /*We )ant to use t$e dataset containing bot$ market returns and stock returns and )e add all t$e numbers in t$e matri" called .' -t is a /01"22 matri" due to t$e estimation !eriod o% (3/24 days'*/ use skriveb'&eog (3250 read all var 7num7 into . .3.81:2509: /*;o) )e estimate beta by creating a 22"/ matri" containing t$e al!$a and beta in t$e 22 regressions )e generate due t$e t$e 22 com!anies included into t$is grou!' Calculating beta )e adBust %or trade6to6trade' #t t$e end )e also construct t$e t)o vectors # and < )$ic$ contains t$e al!$as and betas and are use later on in t$e calculations'*/ beta3=>559290? count30 do i31 to 110 by 2 @3=>(9291? A3=>(9191?

do B31 to ( i% abs>.8B9i:?C 0 t$en do count3count51 @8B9:3=>19191?DD.8B9i: A8B91:3.8B9i51: end end @3@81:count9: A3A81:count9: count30 beta8>i51?/29:3>-;E>@F*@?*@F*y?F end !rint beta #3beta891: <3beta892: /*,ere )e create t$e M matri" )$ic$ contains t$e market returns at all /01 days in t$e estimation !eriod and in t$e event )indo) in relation to t$e 22 com!anies'*/ use skriveb'&eogHm (3261 read all var 7num7 into m M3m81:2619: /*<y use o% t$e #9 < and M matrices )e calculate t$e e"!ected return %or eac$ com!any at all /01 days in t$e estimation !eriod and t$e event )indo)'*/ HMny3=>26195590? do i31 to 55 by 1 bet3<8i: HM3M89i: #l3#8i: HMny89i:3HM*bet5#l end /*,ere )e create t$e #I matri" )$ic$ contains t$e actual stock returns inside t$e estimation !eriod and t$e event )indo) in relation to t$e 22 com!anies'*/ use skriveb'&eogHa (3261 read all var 7num7 into #I #I3#I81:2619: /*;o) )e can calculate t$e #bnormal Heturn >#H?%or eac$ stock at all /01 days in t$e estimation !eriod and t$e event )indo)9 )$ic$ is t$e di%%erence bet)een t$e actual return and t$e e"!ected return'*/ #H3#I6HMny

/*We %ind t$e median )it$in eac$ coloum in t$e #H matri"*/ G3=>195590? do i31 to 55 by 1 G89i:3median>#H89i:? end Dsign3=>26195590? do i31 to 55 by 1 GM3GF8i: #HM3#H89i: Dsign89i:3#HM6GM end /*We assign t$e sign o% t$e e"cess returns'*/ #Hsign3=>26195590? do i31 to 55 by 1 do B31 to 261 by 1 i% Dsign8B9i:C0 t$en #Hsign8B9i:31 else i% Dsign8B9i:N0 t$en #Hsign8B9i:361 else #Hsign8B9i:30 end end /*We count t$e number o% times t$e it$ stock return is .ero in eac$ Bt$ ro)'*/ #Hnon3=>26195590? do i31 to 55 by 1 do B31 to 261 by 1 i% #I8B9i:C0 t$en #Hnon8B9i:30 else i% #I8B9i:N0 t$en #Hnon8B9i:30 else #Hnon8B9i:31 end end #Hcount3=>2619190? Do B31 to 261 by 1 #Hcount8B9:3#Hnon8B95: end /*We calculate t$e standard deviation'*/ sumB3=>2619190? aveB3=>2619190? do B31 to 261 by 1 sumB8B9:3sum>#Hsign8B9:? aveB8B9:3sumB8B9:/sKrt>556#Hcount8B9:? end Stddev3sKrt>>1/261?*sum>aveBMM2?? !rint Stddev /*Calculation o% t$e test statistic'*/ (obs3>>1/sKrt>55??*sum>#Hsign82569:??/Stddev !rint (obs

/*Jinally t$e calculation o% t$e !6value'*/ !value32*!robnorm>6abs>(obs?? !rint !value quit

Appendi$ 0& E$ample of 'A' code (!en, 'ign* used in relation to daily stoc+ prices,
General"9ed S"&n te#t:
/*We start by creating a library called skrivb*/ libname Skriveb 'C:\Documents and Settings\Louise Mller\skrivebord' /*We im!ort our e"cel dataset into S#S and save t$is %ile in our library using t$e name &eog' ($is is t$e dataset )e use )$en estimating t$e betas as a result o% regressing t$e stock returns on t$e market returns'*/ data Skriveb'&eog set &eog /*($is is t$e dataset containing t$e market returns in t$e relevant time !eriods to eac$ stock'*/ data Skriveb'&eogHm set &eogHm /*($is is t$e dataset containing t$e individual stock returns'*/ data Skriveb'&eogHa set &eogHa /*,ere )e start t$e -ML !rocedure using matrices in t$e calculations'*/ proc iml /*We )ant to use t$e dataset containing bot$ market returns and stock returns and )e add all t$e numbers in t$e matri" called .' -t is a /24"22 matri" due to t$e estimation !eriod o% (3/24 days'*/ use skriveb'&eog (3250 read all var 7num7 into . .3.81:2509: /*;o) )e estimate beta by creating a 22"/ matri" containing t$e al!$a and beta in t$e 22 regressions )e generate due t$e t$e 22 com!anies included into t$is grou!' -n calculation beta )e adBust %or trade6to6trade' #t t$e end )e also construct t$e t)o vectors # and < )$ic$ contains t$e al!$as and betas and are use later on in t$e calculations'*/ beta3=>559290? count30 do i31 to 110 by 2 @3=>(9291?

A3=>(9191? do B31 to ( i% abs>.8B9i:?C 0 t$en do count3count51 @8B9:3=>19191?DD.8B9i: A8B91:3.8B9i51: end end @3@81:count9: A3A81:count9: count30 beta8>i51?/29:3>-;E>@F*@?*@F*y?F end !rint beta #3beta891: <3beta892: /*,ere )e create t$e M matri" )$ic$ contains t$e market returns at all /01 days in t$e estimation !eriod and in t$e event )indo) in relation to t$e 22 com!anies'*/ use skriveb'&eogHm (3261 read all var 7num7 into m M3m81:2619: /*<y use o% t$e #9 < and M matrices )e calculate t$e e"!ected return %or eac$ com!any at all /01 days in t$e estimation !eriod and t$e event )indo)'*/ HMny3=>26195590? do i31 to 55 by 1 bet3<8i: HM3M89i: #l3#8i: HMny89i:3HM*bet5#l end /*,ere )e create t$e #I matri" )$ic$ contains t$e actual stock returns inside t$e estimation !eriod and t$e event )indo) in relation to t$e 22 com!anies'*/ use skriveb'&eogHa (3261 read all var 7num7 into #I #I3#I81:2619: /*;o) )e can calculate t$e #bnormal Heturn >#H?%or eac$ stock at all /01 days in t$e estimation !eriod and t$e event )indo)9 )$ic$ is t$e di%%erence bet)een t$e actual return and t$e e"!ected return'*/ #H3#I6HMny

/*Calculation o% C#H %or eac$ stock during t$e event )indo) as )ell as C##H'*/ C#Hevent3=>195590? do i31 to 55 by 1 do B3251 to 261 by 1 C#Hevent89i:3sum>#H8B9i:? end end C##Hevent3sum>C#Hevent?/55 /*We %ind t$e e"!ected %raction o% !ositive abnormal returns in t$e estimation !eriod' */ #Hsign3=>25095590? do i31 to 55 by 1 do B31 to 250 by 1 i% #H8B9i:C0 t$en #Hsign8B9i:31 else i% #H8B9i:N0 t$en #Hsign8B9i:30 else #Hsign8B9i:30 end end Sumsigni3=>195590? do i31 to 55 by 1 Sumsigni89i:3sum>#Hsign89i:?/250 end !rob!os3sum>Sumsigni?/55 /*Calculation o% ) >($e number o% stock in t$e event )indo) )$ere t$e C#H C 4'?*/ C#Hsign3=>195590? do i31 to 55 by 1 i% C#Hevent89i:C0 t$en C#Hsign89i:31 else i% C#Hevent89i:N0 t$en C#Hsign89i:30 else C#Hsign89i:30 end C#Hcount3sum>C#Hsign? !rint C#Hcount /*Calculation o% t$e test statistic'*/ Oobs3>C#Hcount6>55*!rob!os??/>>>55*!rob!os?*>16!rob!os??MM0.5? !rint Oobs !value32*!robnorm>6abs>Oobs?? !rint !value quit

Appendi$ 1& E$ample of 'A' code (ANO2A* used in relation to daily stoc+ prices,
A:;<A:
proc print data3J( /* t$is )ill !rint out t$e ra) data %or c$ecking */ title/ 'ra) data' proc sort by ty!e data3J(

proc means data3J( /* get sim!le summary statistics >sam!le si.e9 sam!le mean and SD? */ title/ 'sim!le summary statistics' by ty!e /* statistics com!uted %or eac$ strategy ty!e''' */ var #H /* ''' on t$e variable '#bnormal Heturn' */ proc plot data3J( /* reKuest a !lot o% t$e ra) data */ title/ '!lot o% t$e ra) data' !lot #H*ty!e proc anova data3J(

run proc glm

title/ '#nalysis' class ty!e /* class statement indicates t$at 'Strategy ty!e' is a %actor */ model #H 3 ty!e /* assumes 'strategy ty!e' in%luences '#bnormal Heturn' */ means ty!e /$ovtest /*Levene's test irt eKual variances*/ means ty!e /tukey data3J(

title/ 'Groc glm #nalysis' /* same as '!roc anova' e"ce!t 'glm' allo)s residual !lots but gives more Bunk out!ut */ class ty!e model #H 3 ty!e out!ut out3%it !3y$at r3resid /* store %itted values and %itted residuals in dataset called '%it' %or later use */ proc univariate data3%it !lot normal var resid /* !lot KK6!lot o% %itted residuals */ proc plot !lot resid*ty!e !lot resid*y$at /* t)o residual !lots to c$eck inde!endence and constant variance */ run

Appendi$ E%& E$ample of 'A' code (")test* used in relation to acc, fig,
.-te#t:
/*We start by creating a library called skrivb*/ libname skriveb 'C:\Documents and Settings\Louise Mller\skrivebord\' /*We im!ort our e"cel dataset into S#S and save t$is %ile in our library using t$e name &eog'*/ data skriveb'&eog set &eog /*,ere )e start t$e -ML !rocedure using matrices in t$e calculations'*/ proc iml /*We )ant to use t$e dataset containing t$e abnormal !er%ormance %or eac$ com!any and )e add all t$e numbers into t$e matri" called .' -t is a 1"21 matri" due to t$e estimation !eriod o% one year be%ore t$e event'*/ use skriveb'&eog (31 read all var 7num7 into . .3.81:19: !rint . /*We calculate t$e C#H'*/ C#H3sum>.? !rint C#H create &eocar1 %rom C#H a!!end %rom C#H /* We need to calculate t$e standard deviation'*/ di%3.MM2 !rint di% sumdi%3sum>di%? !rint sumdi% stddev3sKrt>>1/>5161??*sumdi%? !rint stddev /*Calculating t$e observator and t$e !6value'*/ (obs3>C#H/>stddev?MM0.5? !rint (obs !value32*!robnorm>6abs>(obs??

!rint !value quit title ';ormality &eogra!$ic >H+# 6 *vent?' legend/ JH#M* CJH#M*3ligr C<+HD*H3black G+S-(-+;3center proc capability data3&eoH+#1 $istogram / normal>color3yello) )33? mid!oints 3 3.4 to 3.6 by 0.025 vscale 3 count c%ill 3 blue legend 3 legend/ c%rame 3 ligr nos!eclegend inset lsl usl / c%ill 3 y)$ inset n mean >5.2? c!k >5.2? / c%ill 3 y)$ run

Appendi$ E-& E$ample of 'A' code (Wilco$on* used in relation to acc, fig,
="lco-on S"&ned Ran0 te#t:
/*We start by creating a library called skrivb*/ libname skriveb 'C:\Documents and Settings\Louise Mller\skrivebord' /*We im!ort our e"cel dataset into S#S and save t$is %ile in our library using t$e name &eog'*/ data skriveb'&eog set &eog /*,ere )e start t$e -ML !rocedure using matrices in t$e calculations'*/ proc iml /*We )ant to use t$e dataset containing t$e abnormal !er%ormance %or eac$ com!any and )e add all t$e numbers into t$e matri" called .' -t is a 1"21 matri" due to t$e estimation !eriod o% one year be%ore t$e event'*/ use skriveb'&eog (31 read all var 7num7 into . .3.81:19: !rint . /*We create a matri" consisting o% 1 and 61 to save t$e signs o% t$e #bnormal Ger%ormance'*/ #GSign3=>195190? do i31 to 51 by 1 do B31 to 1 by 1 i% .8B9i:C0 t$en #GSign8B9i:31 else i% .8B9i:N0 t$en #GSign8B9i:361 else #GSign8B9i:30 end end !rint #GSign Count.ero3516sum>#bs>#GSign?? !rint Count.ero /*We create a matri" )it$ t$e absolute values o% eac$ di%%erence in .'*/ #bs.3=>195190? #bs.3#bs>.? !rint #bs. /*We create a matri" t$at rank t$e absolute values created in t$e matri" above'*/ Hank.3=>195190? Hank.3rank>#bs.? !rint Hank.

Hankb3Hank.6count.ero !rint Hankb /*We create a matri" )$ere t$e signed ranks are created9 based on elementvise multi!likation o% t$e sign matri"9 #Gsign9 and t$e rank matri"9 Hankb'*/ SignedHank3=>195190? SignedHank3#GSignMHankb !rint SignedHank /*We create a matri" containing only t$e rank )it$ !ositive signs'*/ SignedHankGos3=>195190? do i31 to 51 by 1 do B31 to 1 by 1 SignedHankGos8B9i:3SignedHank8B9i: i% SignedHank8B9i: N0 t$en SignedHankGos8B9i:3 . i% SignedHank8B9i:C0 t$en SignedHankGos8B9i:3SignedHank8B9i: end end !rint SignedHankGos /*We create a matri" containing only t$e rank )it$ negative signs'*/ SignedHank;eg3=>195190? do i31 to 51 by 1 do B31 to 1 by 1 SignedHank;eg8B9i:3SignedHank8B9i: i% SignedHank8B9i: N0 t$en SignedHank;eg8B9i:3 SignedHank8B9i: i% SignedHank8B9i:C0 t$en SignedHank;eg8B9i:3 . end end !rint SignedHank;eg /*We generate t$e sum o% t$e ranks )it$ !ositive signs and t$e sum o% t$e ranks )it$ negative signs*/ SignedHankGosSum3sum>SignedHankGos? !rint SignedHankGosSum SignedHank;egSum3sum>SignedHank;eg? !rint SignedHank;egSum /*We generate t$e sum o% ranks9 )$ic$ is t$e one )e test against ,o: MyW34'*/ SignedHankSPM3SignedHankGosSum5SignedHank;egSum !rint SignedHankSPM /*We calculate t$e st'dev on t$e total sam!le'*/ k31*51 stdSum3sKrt>>>k*>k51?*>>2*k?51??/6?? !rint stdSum /*We calculate t$e Oobs using a std'normal distribution'*/ Oobs3>>SignedHankSum60?60.5?/stdSum !rint Oobs

!value32*!robnorm>6abs>Oobs?? !rint !value quit

Appendi$ E/& E$ample of 'A' code (ANO2A* used in relation to acc, fig,
A:;<A:
proc print data3J( /* t$is )ill !rint out t$e ra) data %or c$ecking */ title/ 'ra) data' proc sort by ty!e data3J(

proc means data3J( /* get sim!le summary statistics >sam!le si.e9 sam!le mean and SD? */ title/ 'sim!le summary statistics' by ty!e /* statistics com!uted %or eac$ strategy ty!e''' */ var #H /* ''' on t$e variable '#bnormal Heturn' */ proc plot data3J( /* reKuest a !lot o% t$e ra) data */ title/ '!lot o% t$e ra) data' !lot #H*ty!e proc anova data3J(

run proc glm

title/ '#nalysis' class ty!e /* class statement indicates t$at 'Strategy ty!e' is a %actor */ model #H 3 ty!e /* assumes 'strategy ty!e' in%luences '#bnormal Heturn' */ means ty!e /$ovtest /*Levene's test irt eKual variances*/ means ty!e /tukey data3J(

title/ 'Groc glm #nalysis' /* same as '!roc anova' e"ce!t 'glm' allo)s residual !lots but gives more Bunk out!ut */ class ty!e model #H 3 ty!e out!ut out3%it !3y$at r3resid /* store %itted values and %itted residuals in dataset called '%it' %or later use */ proc univariate data3%it !lot normal var resid /* !lot KK6!lot o% %itted residuals */ proc plot !lot resid*ty!e !lot resid*y$at /* t)o residual !lots to c$eck inde!endence and constant variance */ run

Appendi$ 3& Normality in A. for the 4!eographic5 strategy ( aily 'toc+*

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Appendi$ 6& Assumptions regarding the ANO2A for daily stoc+ prices (Event*
H"#to&ra% +2)57?@ 2 2@ 2@@ 2@@ 2@@@@ 2@@@@ 2@@@@@@@@ 2@@@@@@@@@@@@@@@@@@@@ 2@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ 2@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ 2@@@@@@@@@@@@@@@@@@@@@ 2@@@@@@@@ 2@@@@@ 2@@@@ 2@ 2@@ -+2457?@ ----?----?----?----?----?----?----?----?--@ %ay repre#ent up to ) count# > * ) 7 6 ,) ,) *1 56 ,5, ,3+ 6* 4, ,6 ,7 4 3 ) Bo-plot @ @ + + + + A A ?--?--? ?-----? A A + + + + @

:or%al Probab"l"ty Plot +2)57? @ A A @@ A @@@ A @@@ ??? A @@@@??? A ?@@? A ???@@@ A ??@@@@@@ A @@@@@@@@ A @@@@@@@@ A @@@@@@?? A @@@@??? A @@@? A ??@@@@ A??? @ A @@@ -+2457?@ ?----?----?----?----?----?----?----?----?----?----? -* -, + ?, ?*

.$e A:;<A Procedure Be eneC# .e#t /or Ho%o&ene"ty o/ AR <ar"ance A:;<A o/ S'uared De "at"on# /ro% Group Mean# Su% o/ S'uare# +2++)+* +2))14 Mean S'uare +2+++757 +2+++5+3

Source type Error

DF 5 343

F <alue +26,

Pr D F +27534

.$e A:;<A Procedure Be el o/ type 8on er&e Geo&rap$ MP Mar0et ; ercapa Product RFD R8 --------------AR------------Mean Std De +2+*1473)3 -+2++)1**4, +2++,)1615 -+2++47+11* +2+,7561*4 +2++)66+75 -+2+*++1614 +2++)3*653 +2,)365547 +2+177667) +2,,*+++6+ +2,+71,)3+ +2,+,+*)47 +2,,3*775* +2,*4+)14, +2,4715465

: ,1 77 ,13 51 ,*, ,,5 ,1 46

Appendi$ 7%& Assumptions regarding the ANO2A for acc, fig,8 .OA (E97"* (-:*
H"#to&ra% ,527?@ 2@@@@@ 2@@@@@@@@@@@@@@@ 2@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ 2@@@@@@@@@@@@@@@@@@@@@@@@@ -527?@@@@@@ 2@@@ 2@@ 2@ 2@ -4*27?@ 2 2 2 2 -7527? 2 2 2@ 2@ -6*27? 2 2 2 2@ -,+527?@ ----?----?----?----?----?----?----?----?----?@ %ay repre#ent up to 3 count# > ) *3 61 *57 ,)7 44 ,3 1 7 * * Bo-plot + + A ?--?--? ?-----? A + + @ @ @

, ,

@ @

, *

@ @

:or%al Probab"l"ty Plot ,527? ???? @ A ????? @@@@@@@@ A ????@@@@@@@@ A @@@@@@@@@@@@@@ A @@@@@@@@@??? -527? @@@@ ????? A @@@@????? A @@@??? A ?@@@? A?? @ -4*27? @@ A A A A -7527? A A A @ A@ -6*27? A A A A@ -,+527?@ ?----?----?----?----?----?----?----?----?----?----? -* -, + ?, ?* .$e A:;<A Procedure Be eneC# .e#t /or Ho%o&ene"ty o/ AR <ar"ance A:;<A o/ S'uared De "at"on# /ro% Group Mean# Su% o/ S'uare# 451+4)) )2*3,7E6 Mean S'uare 7),)56 5+35*,

Source type Error

DF 5 3+4

F <alue +255

Pr D F +23,71

.$e A:;<A Procedure Be el o/ type 8on er&e Geo&rap$ MP Mar0et ; ercapa Product RFD R8 --------------AR------------Mean Std De *265),7+65 -+2577*7773 -*2+4+33147 -)255114+14 -+2*7))36+4 -+27537,))5 -)2153*6++, -+21))15535 72+417775 )263+4+,5 ,,23,143*5 ,5275*157* ,,2*,43137 32**4+7*7 6255,5**4 62+744775

: ,1 7, ,67 3) ,,3 ,*, ,6 45

t .e#t# (BSD) /or AR :;.E: .$"# te#t control# t$e .ype I co%par"#onG"#e error rateH not t$e e-per"%entG"#e error rate2

Alp$a +2+7 Error De&ree# o/ Freedo% 3+4 Error Mean S'uare ,,421+5, 8r"t"cal <alue o/ t ,21341,

8o%par"#on# #"&n"/"cant at t$e +2+7 le el are "nd"cated by @@@2

type 8o%par"#on 8on er&e 8on er&e 8on er&e 8on er&e 8on er&e 8on er&e 8on er&e ; ercapa ; ercapa ; ercapa ; ercapa ; ercapa ; ercapa ; ercapa Product Product Product Product Product Product Product Geo&rap$ Geo&rap$ Geo&rap$ Geo&rap$ Geo&rap$ Geo&rap$ Geo&rap$ R8 R8 R8 R8 R8 R8 R8 MP MP MP MP ; ercapa Product Geo&rap$ R8 MP Mar0et RFD 8on er&e Product Geo&rap$ R8 MP Mar0et RFD 8on er&e ; ercapa Geo&rap$ R8 MP Mar0et RFD 8on er&e ; ercapa Product R8 MP Mar0et RFD 8on er&e ; ercapa Product Geo&rap$ MP Mar0et RFD 8on er&e ; ercapa Product Geo&rap$

D"//erence BetGeen Mean# 42,*1 42)7, 423*1 426,1 )21+7 5237) 5267+ -42,*1 +24** +27+, +231, ,2553 )27*7 )25** -42)7, -+24** +2,51 +2436 ,2)7) )2*+4 )2)++ -423*1 -+27+, -+2,51 +2,1+ ,2*57 )2+*7 )2**, -426,1 -+231, -+2436 -+2,1+ ,2+63 42647 )2+4, -)21+7 -,2553 -,2)7) -,2*57

17I 8on/"dence B"%"t# -*2+71 -,25** -*2++) -*2+15 -+2,)7 *2,56 +2173 -624,3 -*2)+* -42+*, -42*35 -+25+3 ,2*3* -+2766 -623*4 -42+)3 -424*, -42731 -+2113 +213) -+2617 -12*34 -)2+** -42356 -)2445 -*2+)+ +2+1+ -,27*7 -12547 -)23)6 -)24+3 -)25,3 -*2361 -+2)1) -,211* -1217) -)2*71 -421+7 -)271+ 624,3 623*4 12*34 12547 1217) ,42,4+ ,)25)7 *2+71 42+)3 )2+** )23)6 )2*71 52561 ,+2+4* ,25** *2)+* 42356 )24+3 421+7 52))4 12317 *2++) 42+*, 424*, )25,3 )271+ 52171 12135 *2+15 42*35 42731 )2445 )263+ 62,3) ,+2+77 +2,)7 +25+3 +2113 *2+)+

@@@ @@@

@@@

@@@

@@@

MP MP MP Mar0et Mar0et Mar0et Mar0et Mar0et Mar0et Mar0et RFD RFD RFD RFD RFD RFD RFD

R8 Mar0et RFD 8on er&e ; ercapa Product Geo&rap$ R8 MP RFD 8on er&e ; ercapa Product Geo&rap$ R8 MP Mar0et

-,2+63 *25)1 *21)3 -5237) -)27*7 -)2*+4 -)2+*7 -42647 -*25)1 +2,13 -5267+ -)25** -)2)++ -)2**, -)2+4, -*21)3 -+2,13

-)263+ -+2*1+ -*2*4+ -,42,4+ -52561 -52))4 -52171 -62,3) -72561 -72413 -,)25)7 -,+2+4* -12317 -12135 -,+2+77 -62,*, -72566

*2361 72561 62,*, -*2,56 -,2*3* -+213) -+2+1+ +2)1) +2*1+ 72566 -+2173 +2766 +2617 ,27*7 ,211* *2*4+ 72413

@@@ @@@ @@@ @@@

@@@

.$e A:;<A Procedure Bon/erron" (Dunn) t .e#t# /or AR :;.E: .$"# te#t control# t$e .ype I e-per"%entG"#e error rateH but "t &enerally $a# a $"&$er .ype II error rate t$an .u0eyC# /or all pa"rG"#e co%par"#on#2

Alp$a +2+7 Error De&ree# o/ Freedo% 3+4 Error Mean S'uare ,,421+5, 8r"t"cal <alue o/ t 42,455*

8o%par"#on# #"&n"/"cant at t$e +2+7 le el are "nd"cated by @@@2

type 8o%par"#on 8on er&e 8on er&e 8on er&e 8on er&e 8on er&e 8on er&e 8on er&e ; ercapa ; ercapa ; ercapa ; ercapa ; ercapa ; ercapa ; ercapa Product Product Product Product ; ercapa Product Geo&rap$ R8 MP Mar0et RFD 8on er&e Product Geo&rap$ R8 MP Mar0et RFD 8on er&e ; ercapa Geo&rap$ R8

D"//erence BetGeen Mean# 42,*1 42)7, 423*1 426,1 )21+7 5237) 5267+ -42,*1 +24** +27+, +231, ,2553 )27*7 )25** -42)7, -+24** +2,51 +2436

S"%ultaneou# 17I 8on/"dence B"%"t# -72,71 -)26,4 -7245, -7234* -42,34 -,2+17 -42,3) -,,2),5 -)2+*1 -72,*3 -7234* -*2,1+ -+2361 -4253* -,,25,7 -)235) -72),* -721*4 ,,2),5 ,,25,7 ,*234+ ,42*5, ,*215* ,32)+4 ,62637 72,71 )235) 32,*5 52+,4 725)* 125)+ ,42*+7 )26,4 )2+*1 7255+ 3233+

Product Product Product Geo&rap$ Geo&rap$ Geo&rap$ Geo&rap$ Geo&rap$ Geo&rap$ Geo&rap$ R8 R8 R8 R8 R8 R8 R8 MP MP MP MP MP MP MP Mar0et Mar0et Mar0et Mar0et Mar0et Mar0et Mar0et RFD RFD RFD RFD RFD RFD RFD

MP Mar0et RFD 8on er&e ; ercapa Product R8 MP Mar0et RFD 8on er&e ; ercapa Product Geo&rap$ MP Mar0et RFD 8on er&e ; ercapa Product Geo&rap$ R8 Mar0et RFD 8on er&e ; ercapa Product Geo&rap$ R8 MP RFD 8on er&e ; ercapa Product Geo&rap$ R8 MP Mar0et

,2)7) )2*+4 )2)++ -423*1 -+27+, -+2,51 +2,1+ ,2*57 )2+*7 )2**, -426,1 -+231, -+2436 -+2,1+ ,2+63 42647 )2+4, -)21+7 -,2553 -,2)7) -,2*57 -,2+63 *25)1 *21)3 -5237) -)27*7 -)2*+4 -)2+*7 -42647 -*25)1 +2,13 -5267+ -)25** -)2)++ -)2**, -)2+4, -*21)3 -+2,13

-*2)3, -+2154 -)2+3+ -,*234+ -32,*5 -7255+ -52+)* -)2+*, -*2*3, -)213+ -,42*5, -52+,4 -3233+ -52)** -)21)7 -42+6, -7271* -,*215* -725)* -7245+ -3275* -52,,5 -*2,+5 -724*4 -,32)+4 -125)+ -12451 -,+24,, -,+257, -523+3 -62546 -,62637 -,42*+7 -,*263+ -,42)+* -,42377 -,,2*,) -12,4,

7245+ 12451 ,*263+ 7245, 72,*3 72),* 52)** 3275* ,+24,, ,42)+* 7234* 7234* 721*4 52+)* 52,,5 ,+257, ,42377 42,34 *2,1+ *2)3, )2+*, )21)7 523+3 ,,2*,) ,2+17 +2361 +2154 *2*3, 42+6, *2,+5 12,4, 42,3) 4253* )2+3+ )213+ 7271* 724*4 62546

.$e A:;<A Procedure .u0eyC# Student"9ed Ran&e (HSD) .e#t /or AR :;.E: .$"# te#t control# t$e .ype I e-per"%entG"#e error rate2

Alp$a +2+7 Error De&ree# o/ Freedo% 3+4 Error Mean S'uare ,,421+5, 8r"t"cal <alue o/ Student"9ed Ran&e )24+,)5

8o%par"#on# #"&n"/"cant at t$e +2+7 le el are "nd"cated by @@@2

type

D"//erence BetGeen

S"%ultaneou# 17I 8on/"dence

8o%par"#on 8on er&e 8on er&e 8on er&e 8on er&e 8on er&e 8on er&e 8on er&e ; ercapa ; ercapa ; ercapa ; ercapa ; ercapa ; ercapa ; ercapa Product Product Product Product Product Product Product Geo&rap$ Geo&rap$ Geo&rap$ Geo&rap$ Geo&rap$ Geo&rap$ Geo&rap$ R8 R8 R8 R8 R8 R8 R8 MP MP MP MP MP MP MP Mar0et Mar0et Mar0et Mar0et Mar0et Mar0et Mar0et RFD RFD RFD RFD RFD RFD RFD ; ercapa Product Geo&rap$ R8 MP Mar0et RFD 8on er&e Product Geo&rap$ R8 MP Mar0et RFD 8on er&e ; ercapa Geo&rap$ R8 MP Mar0et RFD 8on er&e ; ercapa Product R8 MP Mar0et RFD 8on er&e ; ercapa Product Geo&rap$ MP Mar0et RFD 8on er&e ; ercapa Product Geo&rap$ R8 Mar0et RFD 8on er&e ; ercapa Product Geo&rap$ R8 MP RFD 8on er&e ; ercapa Product Geo&rap$ R8 MP Mar0et

Mean# 42,*1 42)7, 423*1 426,1 )21+7 5237) 5267+ -42,*1 +24** +27+, +231, ,2553 )27*7 )25** -42)7, -+24** +2,51 +2436 ,2)7) )2*+4 )2)++ -423*1 -+27+, -+2,51 +2,1+ ,2*57 )2+*7 )2**, -426,1 -+231, -+2436 -+2,1+ ,2+63 42647 )2+4, -)21+7 -,2553 -,2)7) -,2*57 -,2+63 *25)1 *21)3 -5237) -)27*7 -)2*+4 -)2+*7 -42647 -*25)1 +2,13 -5267+ -)25** -)2)++ -)2**, -)2+4, -*21)3 -+2,13

B"%"t# -)21+3 -)273+ -72+13 -724)4 -*21,3 -+26*5 -*26*5 -,,2,34 -42613 -)2174 -72)41 -*2+36 -+27*1 -427+* -,,2)3, -)27)+ -72*), -7254+ -*24), -+26,) -426+, -,*247) -72177 -72716 -326*, -42671 -*2+31 -)2351 -,*216, -326*+ -32)35 -52*++ -)253+ -*2631 -72*15 -,*25*7 -723*, -72*7+ -32)+1 -3214* -,2176 -72+31 -,32,47 -1276+ -12**, -,+2,,6 -,+2741 -52)75 -62)3) -,627*6 -,*21)7 -,*23+, -,42,*, -,4243+ -,+213, -62675 ,,2,34 ,,2)3, ,*247) ,*216, ,*25*7 ,32,47 ,627*6 )21+3 )27)+ 72177 326*+ 723*, 1276+ ,*21)7 )273+ 42613 72716 32)35 72*7+ 12**, ,*23+, 72+13 )2174 72*), 52*++ 32)+1 ,+2,,6 ,42,*, 724)4 72)41 7254+ 326*, 3214* ,+2741 ,4243+ *21,3 *2+36 *24), 42671 )253+ 52)75 ,+213, +26*5 +27*1 +26,) *2+31 *2631 ,2176 62675 *26*5 427+* 426+, )2351 72*15 72+31 62)3)

Appendi$ 7-& Assumptions for the ANO2A for acc, fig, (trans,*8 .OA (E97"* (-:*
H"#to&ra% )27?@@ 2@@@@@@@@@@@@ 2@@@@@@@@@@@@@@@@@@@@@@@@@ ,27?@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ 2@@@@@@@@@@@@@@@@@@@@@@@@ 2@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ -,27?@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ 2@@@@@@@@@@@@@@@@@@@ 2@@@@@@@ -)27?@@@ 2@@ 2 -527? 2@ 2@ -,+27?@ ----?----?----?----?----?----?----?--@ %ay repre#ent up to 4 count# > 7 47 57 ,,* 5, ,,4 ,+7 75 ,1 1 7 Bo-plot A A A ?-----? A ? A @-----@ ?-----? A A A A

* , *

+ + +

:or%al Probab"l"ty Plot )27? ?????@@ A ?@@@@@@@@@ A @@@@@@@ ,27? @@@@@@@ A @@@@? A @@@@@ -,27? @@@@@@@ A @@@@@@ A @@@@@? -)27? ??@@@ A?@@@ A -527? A@@ A@ -,+27?@ ?----?----?----?----?----?----?----?----?----?----? -* -, + ?, ?*

.$e A:;<A Procedure Be eneC# .e#t /or Ho%o&ene"ty o/ AR <ar"ance A:;<A o/ S'uared De "at"on# /ro% Group Mean# Su% o/ S'uare# 5,42+ )665)2+ Mean S'uare ,+,21 6,2+7,4

Source type Error

DF 5 3+4

F <alue ,2*3

Pr D F +2*313

.$e A:;<A Procedure Be el o/ type 8on er&e Geo&rap$ MP Mar0et ; ercapa Product RFD R8 --------------AR------------Mean Std De +2677)3,,1 -+2*3,)*,37 -+2474675+7 -+25335+,5+ +2,51433*, -+2,47)1*1) -,2*,14*+*) -+2,7461,1) ,255455*46 ,2566*))+7 *2*46641)* *2331,3)33 *2+*73)175 ,217+11*+5 *2)457,77, *24),6,7),

: ,1 7, ,67 3) ,,3 ,*, ,6 45

.$e A:;<A Procedure t .e#t# (BSD) /or AR :;.E: .$"# te#t control# t$e .ype I co%par"#onG"#e error rateH not t$e e-per"%entG"#e error rate2

Alp$a +2+7 Error De&ree# o/ Freedo% 3+4 Error Mean S'uare )2335673 8r"t"cal <alue o/ t ,21341,

8o%par"#on# #"&n"/"cant at t$e +2+7 le el are "nd"cated by @@@2

type 8o%par"#on 8on er&e 8on er&e 8on er&e 8on er&e 8on er&e 8on er&e 8on er&e ; ercapa ; ercapa ; ercapa ; ercapa ; ercapa Product R8 Geo&rap$ MP Mar0et RFD 8on er&e Product R8 Geo&rap$

D"//erence BetGeen Mean# +2353, +211,+ ,2++1) ,2,,31 ,2*+14 ,23*** *2+5)6 -+2353, +24,)1 +24444 +2))+6

17I 8on/"dence B"%"t# -+245)+ -+2+73, -+2,66* -+2+*47 +2,65, +27,43 +2351* -,25*3* -+2*437 -+2)351 -+2*5*, ,25*3* *2+46+ *2*+31 *2*754 *2*4,7 *254+5 42)5+) +245)+ +2633* ,2,4)) ,2,745

@@@ @@@ @@@

; ercapa ; ercapa ; ercapa Product Product Product Product Product Product Product R8 R8 R8 R8 R8 R8 R8 Geo&rap$ Geo&rap$ Geo&rap$ Geo&rap$ Geo&rap$ Geo&rap$ Geo&rap$ MP MP MP MP MP MP MP Mar0et Mar0et Mar0et Mar0et Mar0et Mar0et Mar0et RFD RFD RFD RFD RFD RFD RFD

MP Mar0et RFD 8on er&e ; ercapa R8 Geo&rap$ MP Mar0et RFD 8on er&e ; ercapa Product Geo&rap$ MP Mar0et RFD 8on er&e ; ercapa Product R8 MP Mar0et RFD 8on er&e ; ercapa Product R8 Geo&rap$ Mar0et RFD 8on er&e ; ercapa Product R8 Geo&rap$ MP RFD 8on er&e ; ercapa Product R8 Geo&rap$ MP Mar0et

+2744* +21)3, ,24165 -+211,+ -+24,)1 +2+,6) +2,*71 +2*,6) +234,* ,2+646 -,2++1) -+24444 -+2+,6) +2,+57 +2*+++ +23,*6 ,2+37) -,2,,31 -+2))+6 -+2,*71 -+2,+57 +2+1*) +27+74 +21751 -,2*+14 -+2744* -+2*,6) -+2*+++ -+2+1*) +2),*6 +26377 -,23*** -+21)3, -+234,* -+23,*6 -+27+74 -+2),*6 +2)7*3 -*2+5)6 -,24165 -,2+646 -,2+37) -+21751 -+26377 -+2)7*3

+2+4+5 +2*67) +24*46 -*2+46+ -+2633* -+25565 -+276*7 -+2*555 -+2+*)3 +2+,,1 -*2*+31 -,2,4)) -+26,77 -+26+66 -+273)* -+2*347 -+2,741 -*2*754 -,2,745 -+264)4 -,2+*46 -+27563 -+2*1,* -+2*+7) -*2*4,7 -,2+475 -+25,)7 -+213), -+25347 -+2*+*7 -+2,6** -*254+5 -,23+36 -,2*65+ -,2)61, -,24+,5 -,2+*6* -+2351) -42)5+) -*2)543 -*2,775 -*2*6)6 -*2,*,* -,21,4, -,276)5

,2+475 ,23+36 *2)543 +2+73, +2*437 +26,77 +264)4 +25,)7 ,2*65+ *2,775 +2,66* +2)351 +25565 ,2+*46 +213), ,2)61, *2*6)6 +2+*47 +2*5*, +276*7 +26+66 +25347 ,24+,5 *2,*,* -+2,65, -+2+4+5 +2*555 +273)* +27563 ,2+*6* ,21,4, -+27,43 -+2*67) +2+*)3 +2*347 +2*1,* +2*+*7 ,276)5 -+2351* -+24*46 -+2+,,1 +2,741 +2*+7) +2,6** +2351)

@@@ @@@ @@@

@@@

@@@ @@@

@@@ @@@

@@@ @@@ @@@

.$e A:;<A Procedure Bon/erron" (Dunn) t .e#t# /or AR :;.E: .$"# te#t control# t$e .ype I e-per"%entG"#e error rateH but "t &enerally $a# a $"&$er .ype II error rate t$an .u0eyC# /or all pa"rG"#e co%par"#on#2

Alp$a +2+7 Error De&ree# o/ Freedo% 3+4 Error Mean S'uare )2335673 8r"t"cal <alue o/ t 42,455*

8o%par"#on# #"&n"/"cant at t$e +2+7 le el are "nd"cated by @@@2

type 8o%par"#on 8on er&e 8on er&e 8on er&e 8on er&e 8on er&e 8on er&e 8on er&e ; ercapa ; ercapa ; ercapa ; ercapa ; ercapa ; ercapa ; ercapa Product Product Product Product Product Product Product R8 R8 R8 R8 R8 R8 R8 Geo&rap$ Geo&rap$ Geo&rap$ Geo&rap$ Geo&rap$ Geo&rap$ Geo&rap$ MP MP ; ercapa Product R8 Geo&rap$ MP Mar0et RFD 8on er&e Product R8 Geo&rap$ MP Mar0et RFD 8on er&e ; ercapa R8 Geo&rap$ MP Mar0et RFD 8on er&e ; ercapa Product Geo&rap$ MP Mar0et RFD 8on er&e ; ercapa Product R8 MP Mar0et RFD 8on er&e ; ercapa

D"//erence BetGeen Mean# +2353, +211,+ ,2++1) ,2,,31 ,2*+14 ,23*** *2+5)6 -+2353, +24,)1 +24444 +2))+6 +2744* +21)3, ,24165 -+211,+ -+24,)1 +2+,6) +2,*71 +2*,6) +234,* ,2+646 -,2++1) -+24444 -+2+,6) +2,+57 +2*+++ +23,*6 ,2+37) -,2,,31 -+2))+6 -+2,*71 -+2,+57 +2+1*) +27+74 +21751 -,2*+14 -+2744*

S"%ultaneou# 17I 8on/"dence B"%"t# -,2++,5 -+236,1 -+21+)+ -+25+7* -+2)*46 -+2,)61 -+2,77+ -*24741 -+2733+ -+21)35 -+2316* -+2*313 -+2,+17 -+24,65 -*23346 -,2,176 -,2*77, -,2++76 -+275)* -+2),33 -+23*66 -*21**5 -,23,4* -,2*1,1 -,2473) -,2+*+1 -+2565* -+266*5 -*21461 -,27516 -,2*755 -,275,7 -+21515 -+2535* -+21++5 -*26)*7 -,2443, *24741 *23346 *21**5 *21461 *26)*7 424144 )24+)3 ,2++,5 ,2,176 ,23,4* ,27516 ,2443, *2++,3 42,,3+ +236,1 +2733+ ,2*1,1 ,2*755 ,2+,,+ ,2351+ *2513) +21+)+ +21)35 ,2*77, ,275,7 ,2)*+6 *2+,*1 42+,43 +25+7* +2316* ,2++76 ,2473) ,2,3)3 ,25555 *26,37 +2)*46 +2*313

MP MP MP MP MP Mar0et Mar0et Mar0et Mar0et Mar0et Mar0et Mar0et RFD RFD RFD RFD RFD RFD RFD

Product R8 Geo&rap$ Mar0et RFD 8on er&e ; ercapa Product R8 Geo&rap$ MP RFD 8on er&e ; ercapa Product R8 Geo&rap$ MP Mar0et

-+2*,6) -+2*+++ -+2+1*) +2),*6 +26377 -,23*** -+21)3, -+234,* -+23,*6 -+27+74 -+2),*6 +2)7*3 -*2+5)6 -,24165 -,2+646 -,2+37) -+21751 -+26377 -+2)7*3

-,2+,,+ -,2)*+6 -,2,3)3 -+275+4 -+26+64 -424144 -*2++,3 -,2351+ -*2+,*1 -,25555 -,24171 -,2473+ -)24+)3 -42,,3+ -*2513) -42+,43 -*26,37 -*2741* -*2*3,4

+275)* ,2+*+1 +21515 ,24171 *2741* +2,)61 +2,+17 +2),33 +2565* +2535* +275+4 *2*3,4 +2,77+ +24,65 +23*66 +266*5 +21++5 +26+64 ,2473+

.$e A:;<A Procedure .u0eyC# Student"9ed Ran&e (HSD) .e#t /or AR :;.E: .$"# te#t control# t$e .ype I e-per"%entG"#e error rate2

Alp$a Error De&ree# o/ Freedo% Error Mean S'uare 8r"t"cal <alue o/ Student"9ed Ran&e

+2+7 3+4 )2335673 )24+,)5

8o%par"#on# #"&n"/"cant at t$e +2+7 le el are "nd"cated by @@@2

type 8o%par"#on 8on er&e 8on er&e 8on er&e 8on er&e 8on er&e 8on er&e 8on er&e ; ercapa ; ercapa ; ercapa ; ercapa ; ercapa ; ercapa ; ercapa Product Product Product ; ercapa Product R8 Geo&rap$ MP Mar0et RFD 8on er&e Product R8 Geo&rap$ MP Mar0et RFD 8on er&e ; ercapa R8

D"//erence BetGeen Mean# +2353, +211,+ ,2++1) ,2,,31 ,2*+14 ,23*** *2+5)6 -+2353, +24,)1 +24444 +2))+6 +2744* +21)3, ,24165 -+211,+ -+24,)1 +2+,6)

S"%ultaneou# 17I 8on/"dence B"%"t# -+217+4 -+234+5 -+26)7) -+23)14 -+24546 -+2+1)5 -+2+635 -*24+*7 -+2741, -+21+57 -+23344 -+2*)7+ -+2+55* -+2*33, -*23,*3 -,2,366 -,2*,3, *24+*7 *23,*3 *263), *2664, *251*) 42441+ )2*43* +217+4 ,2,366 ,275)+ ,27))1 ,24,,7 ,21314 42+34) +234+5 +2741, ,2*7*1

Product Product Product Product R8 R8 R8 R8 R8 R8 R8 Geo&rap$ Geo&rap$ Geo&rap$ Geo&rap$ Geo&rap$ Geo&rap$ Geo&rap$ MP MP MP MP MP MP MP Mar0et Mar0et Mar0et Mar0et Mar0et Mar0et Mar0et RFD RFD RFD RFD RFD RFD RFD

Geo&rap$ MP Mar0et RFD 8on er&e ; ercapa Product Geo&rap$ MP Mar0et RFD 8on er&e ; ercapa Product R8 MP Mar0et RFD 8on er&e ; ercapa Product R8 Geo&rap$ Mar0et RFD 8on er&e ; ercapa Product R8 Geo&rap$ MP RFD 8on er&e ; ercapa Product R8 Geo&rap$ MP Mar0et

+2,*71 +2*,6) +234,* ,2+646 -,2++1) -+24444 -+2+,6) +2,+57 +2*+++ +23,*6 ,2+37) -,2,,31 -+2))+6 -+2,*71 -+2,+57 +2+1*) +27+74 +21751 -,2*+14 -+2744* -+2*,6) -+2*+++ -+2+1*) +2),*6 +26377 -,23*** -+21)3, -+234,* -+23,*6 -+27+74 -+2),*6 +2)7*3 -*2+5)6 -,24165 -,2+646 -,2+37) -+21751 -+26377 -+2)7*3

-+215,* -+277++ -+246)7 -+27534 -*263), -,275)+ -,2*7*1 -,24,,3 -+21647 -+25))4 -+26*4+ -*2664, -,27))1 -,2**4+ -,27*33 -+21)31 -+25*6* -+26)45 -*251*) -,24,,7 -+21635 -,2464) -,2,4,5 -+27)+, -+2575+ -42441+ -,21314 -,23)31 -,215++ -,25466 -,24376 -,24++3 -)2*43* -42+34) -*25)41 -*21741 -*25717 -*2)66+ -*2*+71

,2**4+ +21635 ,23)31 *25)41 +26)7) +21+57 ,2*,3, ,27*33 ,2464) ,215++ *21741 +23)14 +23344 +215,* ,24,,3 ,2,4,5 ,25466 *25717 +24546 +2*)7+ +277++ +21647 +21)31 ,24376 *2)66+ +2+1)5 +2+55* +246)7 +25))4 +25*6* +27)+, *2*+71 +2+635 +2*33, +27534 +26*4+ +26)45 +2575+ ,24++3