The Central Bank may consult other authorities in Cyprus and abroad in the context of its assessment procedure, which also includes the reputation, knowledge, skills, and experience of the shareholders and managers of acquiring companies.
Loan acquiring companies will have to notify the Central Bank of their intention to outsource "any significant functions to third parties" so that they can obtain approval, while they will also have to comply with the provisions of its "code of conduct" concerning borrowers with financial difficulties.
Although UK acquirers appointed their own CEOs more often than did acquirers of other nationalities, the acquiring companies' level of influence over changes in the management practices of their acquired companies tended to be lower.
To summarize, the existing literature has emphasized that executives leave either because acquiring companies make such a decision or because they opt to.
Acquiring companies often adopt a myopic view of the acquisition process.
The typology proposed by Hambrick and Fukutomi (1991) of different CEO tenure stages may help to clarify the dilemma that acquiring companies face.
Finally, acquiring companies do not usually report the performance of the acquired company per se, just the performance of the segment it belongs to when t hat segment represents 10% or more of the acquiring company's consolidating revenues.
There is, of course, a possibility of classification errors with this method; some acquiring companies may have strategies whereby they divest successful acquisitions within five years or hold onto unsuccessful ones.
Acquiring companies tend to retain acquired companies longer if both reside in the same industry (Porter, 1987; Ravenscraft & Scherer, 1987).
Next to environmental litigation, the area of deepest concern among acquiring companies
is the threat of litigation and class actions against board directors, corporate officers and management for fiduciary irregularities and inadequate employment practices.
* ACQUIRING COMPANIES
PAY A HIGHER PREMIUM to pool, on average, than to complete a deal that is accounted for as a purchase.
* In the second situation above, the transaction is divisive because, after that transaction, the target's assets and liabilities are held by both acquiring companies
, and the target's shareholders hold each of the acquiring company's stock.