Merger Mania

Rakesh Bhandari bhandari at phoenix.Princeton.EDU
Sat Dec 5 09:31:03 PST 1998

Having never read a textbook like Copeland and Weston's Finacial Theory and Corporate Policy, I would ask Henry and others about the significance of these mergers being mostly stock, not cash, deals; also are mergers concentrated today in certain kinds of industries, not others? Which industries are most concentrated in the US; does such a pattern hold in other countries? Will the main effect of mergers be to give monopoly power to national capital at home and thereby the ability to secure additional surplus value in circulation while positioning these monopolies to better compete on the global market in which each can undersell the other as each can sells at marginal costs for the sole purpose of destroying international rivals having made superprofits in production and circulation at home? What percentage of profits do these monopolies make at home? And , following Brenner, what are the implications of these mergers for the nature of competition on the world market?

yours, rakesh

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