Motives for and Consequences of Minority Equity Purchases

Minority block purchases describe the acquisition of a non-controlling equity stake below 50 percent in a corporation. The individual motives behind these transactions can vary significantly across different types of investors and firms. Friedel Drees examines the capital markets' reaction to the announcements of minority equity purchases in Europe and the U.S. and identifies the potential sources of value creation. He shows that company-specific characteristics, such as the strategic relatedness between two corporations, can have a significant effect on shareholder value.

List of contents

New Outside Blockholders, Performance, and Governance in Germany.- Equity Ownership, Agency Problems and Shareholder Wealth: Understanding the Unique Role of Corporate Block Owners.- Minority Equity Ownership and Value Creation: The Role of Corporate Relatedness.- Concluding Remarks.

About the author

Dr. Friedel Drees earned his doctoral degree from the European Business School Oestrich-Winkel under the supervision of Prof. Dr. Dirk Schiereck. He works as an investment professional for a private equity fund.

Summary

Minority block purchases describe the acquisition of a non-controlling equity stake below 50 percent in a corporation. The individual motives behind these transactions can vary significantly across different types of investors and firms. Friedel Drees examines the capital markets’ reaction to the announcements of minority equity purchases in Europe and the U.S. and identifies the potential sources of value creation. He shows that company-specific characteristics, such as the strategic relatedness between two corporations, can have a significant effect on shareholder value.

Product details

• Authors: Friedel Drees
• Publisher: Gabler
• Languages: German
• Product format: Paperback / Softback
• Released: 03.09.2010
• EAN: 9783834921642
• ISBN: 978-3-8349-2164-2
• No. of pages: 109
• Weight: 260 g
• Illustrations: XV, 109 S. 2 Abb.
• Series: ebs-Forschung, Schriftenreihe der EUROPEAN BUSINESS SCHOOL Schloß Reichartshausen; ebs Forschung, Schriftenreihe der European Business School Schloss Reichartshausen; Research; Research; ebs Forschung, Schriftenreihe der European Business School Schloss Reichartshausen; ebs-Forschung, Schriftenreihe der EUROPEAN BUSINESS SCHOOL Schloß Reichartshausen
• Subjects: Social sciences, law, business > Business > Economics; C, Finance, Shareholder Value, Unternehmensbeteiligungen, Finance, general, Economics and Finance, Financial Economics