Paper
How a Good Bidder Becomes a Good Target: The Case of Continental AG Acquiring Siemens VDO
- Authors:
- Christian Babl; Dirk Schiereck; Jan-Peer Laabs
- Abstract
- The acquisition of Siemens VDO by Continental AG in July 2007 represented the largest takeover transaction between automotive suppliers to date. This paper examines the motivation and background behind Continental's takeover of Siemens VDO and assesses the short- and long-term post-merger wealth effects of the transaction. By applying a combination of event and accounting study methodologies, we find that Continental is in fact a good bidder. In addition, we confirm the key performance drivers determined in preceding literature and provide a perspective on which M&A strategy results in long-term post-merger success within the industry.
- Keywords
- automotive supply industry; mergers and acquisitions; case study; long-term success; Continental AG; Siemens VDO; bad bidder; good target
- StartPage
- 7
- EndPage
- 21
- Doi