Introduction
Merger refers to is a mutual agreement reached by two or more companies to combine into one bigger legal entity (company). When a merger occurs, the acquiring company offers the stockholders of the other company securities in exchange for their stock. In a merger, the companies could be of equal magnitude or one might be smaller compared to the other. For example, in 1998, an American automobile company, Chrysler Corporation merged with another German automobile company, the Daimler Benz and formed DaimlerChrysler, which is bigger than both the former companies are as single entities (Martelin, 2012). An acquisition on the other hand ...