| Article ID: | iaor1996590 |
| Country: | Netherlands |
| Volume: | 59 |
| Issue: | 2 |
| Start Page Number: | 275 |
| End Page Number: | 287 |
| Publication Date: | Jun 1992 |
| Journal: | European Journal of Operational Research |
| Authors: | Stewart Theodor J., van den Honert Robin C. |
The corporate merger process is modelled as a bargaining game under certainty. The distribution of gains between target and acquiring companies that would be consistent with the Nash-Kalai axioms is determined in principle. An operational version of the resulting game-theoretic model is fitted to empirical results from 24 recent mergers of companies quoted on the Johannesburg Stock Exchange. The model is shown to have good predictive power within this set of data.