In the best cases mergers result in short term reductions in efficiency as the previously two firms learn how to blend (corporate cultures, sales and manufacturing forces, financial controls, managemet/decision-making systems, R&D, etc.) It's really tough. So, we should not be surprised if there are some earnings disappointments.
In the worst cases.....well, we won't consider that. After all, Canadians are really, really polite. Eh? <g>
On the topic of share price: When the correction occurs, as it must, what will be the floor for JDS (TSE)? How about 40% off the previous high of $97 CDN?
Ciao,
David Todtman |
