WHO BENEFITS FROM MERGERS AND ACQUISITIONS?
Mergers and acquisitions proceeded at a record pace during the late 1990s. Up until 1996, the most expensive corporate merger ever was the $25 billion deal between RJR Nabisco and Kohlberg Kravis Roberts that was completed in 1989. But this record has been surpassed numerous times since then. By the middle of 1998, the most expensive merger was the $78.2 billion deal between the Travelers Group and Citicorp. In fact, according to Jeff Rundles in Colorado Business, 8 of the 10 largest corporate mergers in history were announced during the first half of 1998. Some experts claimed that these enormous deals would reduce competition by creating highly consolidated industries controlled by a few major players. They argued that the huge corporations created by such mergers would focus on large accounts to the detriment of smaller customers. Individuals and small businesses would likely face higher prices and reduced services. There is also a question about whether stockholders gain from merge
