- The acquiring company's share price drops because it often pays a premium for the target company, or incurs debt to finance the acquisition.
- The target company's short-term share price tends to rise because the shareholders only agree to the deal if the purchase price exceeds their company's current value.
- The acquiring company's share price drops because it often pays a premium for the target company, or incurs debt to finance the acquisition.
- The target company's short-term share price tends to rise because the shareholders only agree to the deal if the purchase price exceeds their company's current value.
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