Motives for and Consequences of Minority Equity Purchases [Paperback]

Friedel Drees examines the capital markets reaction to the announcements of minority equity purchases in Europe and the U.S. and identifies the potential sources of value creation. He shows that company-specific characteristics can have a significant effect on shareholder value.New Outside Blockholders, Performance, and Governance in Germany.- Equity Ownership, Agency Problems and Shareholder Wealth: Understanding the Unique Role of Corporate Block Owners.- Minority Equity Ownership and Value Creation: The Role of Corporate Relatedness.- Concluding Remarks.Dr. Friedel Drees earned his doctoral degree from the European Business School Oestrich-Winkel under the supervision of Prof. Dr. Dirk Schiereck. He works as an investment professional for a private equity fund.Minority block purchases describe the acquisition of a non-controlling equity stake below 50 percent in a corporation. The individual motives behind these transactions can vary significantly across different types of investors and firms. Friedel Drees examines the capital markets reaction to the announcements of minority equity purchases in Europe and the U.S. and identifies the potential sources of value creation. He shows that company-specific characteristics, such as the strategic relatedness between two corporations, can have a significant effect on shareholder value.Minority block purchases describe the acquisition of a non-controlling equity stake below 50 percent in a corporation. The individual motives behind these transactions can vary significantly across different types of investors and firms. Friedel Drees examines the capital markets reaction to the announcements of minority equity purchases in Europe and the U.S. and identifies the potential sources of value creation. He shows that company-specific characteristics, such as the strategic relatedness between two corporations, can have a significant effect on shareholder value.