What are some defensive tactics that firms can use to resist hostile
takeovers?
What role did junk bonds play in the merger wave of the 1980s?
What is the difference between pure arbitrage and risk arbitrage?
Explain how researchers can study the effects of mergers on share-
holder wealth.
Do mergers create value? If so, who profits from this value?
Do the research results discussed in this section seem logical? Explain
