ABSTRACT
In recent years, the annual estimated value of mergers and acquisitions has increased from about $44 billion in 1980 to $1.2 trillion in 2003. Despite this tremendous rise, not all consolidations have resulted in either increased market share or profitability. Large industrial conglomerates such as General Electric and General Motors earn a growing share of their profits from financial and other nonmanufacturing operations. Other corporations such as AT&T and ITT were forced to downsize or sell off divisions they acquired but on which they could not generate an acceptable rate of return. That noted, however, we cannot fail to recognize that in the past couple of years there have been some truly gargantuan mergers includingJP Morgan Chase and Bane One, Cingular Wireless and AT&T Wireless, Travelers-Citicorp, and Time-Warner and AOL.
