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MUZAFFAR ISLAM

Author is a student of LLB-III. He is Head Study Circle and Joint Editor of QLCian. He
represented Pakistan in “SAARCLAW” INTERNATIONAL MOOT COMPETITION
HELD IN NEW DELHI, INDIA.

Cross-Border Merger & Acquisition


(Foreign Direct Investment)

Cross-Border Merger & Acquisitions implementation is an art, not a science. Each


situation is unique and presents its own set of problems and potential solutions but it is in
fact viable vehicles for international strategy.

The globalization of business over the past decade has spawned a search for competitive
advantage that is worldwide in scale. Companies have followed their customers – who
are going global themselves – as they respond to the pressures of obtaining scale in a
rapidly consolidating global economy. In combination with other trends, such as
increased deregulation, privatization, and corporate restructuring, globalization has
spurred an unprecedented surge in cross-border merger and acquisition activity.1 Cross-
border mergers and acquisitions are an imperative part of the accelerated economic
globalization of our time. Cross-border transaction volume now accounts for almost one-
third of global M&A activity and this number will only increase as business world-wide
continues to expand. The complex legal issues to be handled in such transactions
encompass the coordination of different concepts of corporate governance and capital
market regulations in the laws involved, as mirrored by the intense debate on M&A law
making within the European Union, and for example Germany. Lawyers engaged in the
M&A practice will inevitably be confronted with cross-border transactions and will have
to appropriately counsel their clients in the variable aspects of the law. Cross-Border
Mergers and Acquisitions and the Law, a book based on an international conference held
by the Law Centre for European and International Cooperation (R.I.Z.) in cooperation
with the Centre of Commercial Law Studies, the Asian Institute of International Financial
Law, and the SMU Institute of International Banking and Finance, provides a
comprehensive exploration of the legal implications of a cross-border merger or
acquisition. Applying a comparative approach, the compilation of articles by professors,
practitioners and bankers provides thorough information on topics including Business
Combination Agreements; Securities Regulation and Stock Exchange Listing
Requirements; Tax Considerations; International M&As and International Accounting
Standards; Financial Techniques and Legal Considerations in International Mergers and
Hostile Take-Over; Antitrust Laws in the United States and Europe and their
Extraterritorial Reach; Bank Mergers and Bank Supervisory Law.2

BOX 1.1
Mergers andAccording to Securities
acquisitions (M&A) and Data Corporation,
corporate there were
restructuring are more
a big than
part 2000
of the
announced cross-border acquisitions in 1996 worth over $256 billion. While
corporate finance world. Every day, Wall Street investment bankers arrange M&A this
represents 54% more acquisitions than in 1991, the increase in dollar value been
even more remarkable, tripling during this time period. Clearly cross border M&As
have become a fundamental characteristic of the global business landscape. .3
transactions, which bring separate companies together to form larger ones. When they're
not creating big companies from smaller ones, corporate finance deals do the reverse and
break up companies through spin-offs, carve-outs or tracking stocks. 4

BOX 1.2 One plus one makes three: this equation is the special alchemy of
a merger or an acquisition. The key principle behind buying a company is to
create shareholder value over and above that of the sum of the two
companies. Two companies together are more valuable than two separate
companies - at least, that's the reasoning behind M&A. Mergers are
generally differentiated from acquisitions partly by the way in which they are
financed and partly by the relative size of the companies

In a study conducted in 2000 by Lehman Brothers, it was found that, on average, large
M&A deals cause the domestic currency of the target corporation to appreciate by 1%
relative to the acquirer's. For every one billion dollar deal, the currency of the target
corporation increased in value by 0.5%. More specifically, the report found that in the
period immediately after the deal is announced, there is generally a strong upward
movement in the target corporation's domestic currency (relative to the acquirer's
currency). Fifty days after the announcement, the target currency is then, on average, 1%
stronger. The rise of globalization has exponentially increased the market for cross border
M&A. In 1996 alone there were over 2000 cross border transactions worth a total of
approximately $256 billion. This rapid increase has taken many M&A firms by surprise
because the majority of them never had to consider acquiring the capabilities or skills
required to effectively handle this kind of transaction. In the past, the market's lack of
significance and a more strictly national mindset prevented the vast majority of small and
mid-sized companies from considering cross border intermediation as an option which
left M&A firms inexperienced in this field. This same reason also prevented the
development of any extensive academic works on the subject.

Managing the Cross-Border Merger & Acquisition

• Process of Combination

Phase 1: Pre-combination
Phase 2: Combination planning and signing of the agreement
Phase 3: Post-combination and implementation of the deal
Strategic reasons for the Acquisition

In recent years “strategic” mergers have gotten a bad name, to the extent that some
pundits have defined strategic mergers as those where the acquiring company overpays.
While the price paid for a company is a critical determinant of the success of the resulting
Acquisition, there is no inherent reason, why mergers that are strategically well
conceived, should go away. In fact, the evidence is quite opposite. The recent merger of
British Petroleum’s (BP) and Mobil’s downstream operations across Europe are a case in
point. The strategic 3 logic for this deal says that size and market power are required to
compete against the other major oil companies and even supermarket chains with gas
pumps, in Europe, and significant cost savings can be realized by eliminating duplicate
facilities and employees, and by rationalizing purchasing and cutting overhead. Although
this merger is not without significant integration challenges, it appears to have a solid
strategic logic, and indeed is considered a blueprint for similar deals among rivals such as
Shell, Texaco, and Amoco. It is also an unusual merger since BP and Mobil are only
consolidating their refining and marketing operations in Europe, and remain rivals
elsewhere. Nevertheless, estimates of cost savings are in the range of $500 million a year,
a figure which, if established and maintained, will clearly make this merger a success.
The keys to establishing an effective strategic logic lie in answering questions such as:

BOX 1.4 How will this merger create value, and when will this value be
realized?
Why are we a better parent for this company than someone else?
Can this merger pass the “better-off” test – will we be able to create more
value (by being more competitive, having a stronger cost structure, gaining
additional competencies that we can leverage in new ways, etc.) after the
deal? 5

These are difficult questions that require careful, objective & pre-acquisition analysis.
The tendency for companies “in the heat of battle” to overstate the real strategic benefits
of a deal is a definite problem that must be guarded against pressures that arise from the
desire to close a deal quickly before rival bidders appear, cultural and sometimes
language barriers that create uncertainty, and the often emotionally charged atmosphere
surrounding negotiations, work against this requirement of objectivity. The best solution
in this case is to enter the M&A mode with a carefully developed framework that
addresses the key questions, and to stick to that framework in evaluating a potential
acquisition candidate even when the seemingly inevitable strains arise. Our own research
and experience indicates that the highest potential cross border M&As tend to be between
firms that share similar or complementary operations in such key areas as production and
marketing. When two companies share similar core businesses there are often
opportunities for economies of scale at various stages of the value chain (e.g., R&D,
manufacturing, sales and marketing, distribution, etc.). For example, although the merger
between British Telecom and MCI remains controversial – and losses associated with
MCI’s push to enter the local telephone service market in the U.S. are not reassuring –
there are opportunities for value creation through common software development, shared
capital investment, and joint purchasing agreements. The strategic logic of combining
complementary assets can also be compelling. These assets, which extend to
complementary competencies in technology and know-how, offer great opportunities for
companies to create value in the right circumstances. For example, MCI will be a much
more formidable competitor in the U.S. telephone market with the backing of BT and its
prodigious cash flow. Other potential complementary benefits of this deal include the
positive impact of MCI’s aggressive market-oriented corporate culture on the more
conservative British Telecom, and the potential of the combination itself to be a well-
positioned global competitor as evolving markets in Europe and the U.S. continue to
deregulate and change. Thus, what we call “economies of fitness” arising from
complementary operations or competencies can be an important source of value creation
in mergers and acquisitions.6

Complications in Implementation of Cross Border M & A

BOX 1.3 Due to the complicated nature of cross border M&A, the vast
majority of cross border actions have unsuccessful results. Cross border
intermediation has many more levels of complexity to it then regular
intermediation seeing as corporate governance, the power of the average
employee, company regulations, political factors customer expectations and
country’s culture are all crucial factors that could spoil the transaction.
Because of such complications, many business brokers are finding the
International Corporate Finance Group and organizations like it to be a
necessity in M & A today.7

Consider all that must go right in any (same-country) acquisition: The two companies
must reach agreement on which products and services will be offered, which facility or
group will have primary responsibility for making this happen, who will be in charge of
each of these facilities or groups, where will the expected cost savings come from, what
will the division of labor look like in the executive suite, what timetable to follow that
will best generate the potential synergies of the deal, and myriad other issues that are
complex, detailed, and immediate. On top of all this the merging companies must
continue to compete and serve their customers in a competitive marketplace. Now, take
all these challenges, and add a completely new set of problems that arise from the
fundamental differences that exist across countries. Consider, for example, for all the
similarities that a global imperative places on companies, the very real differences in how
business is conducted in, say, Europe, Japan, and the United States. These differences
involve corporate governance, the power of rank and file employees, worker job security,
regulatory environments, customer expectations, and country culture – all representing
additional layers of complexity that executives engaged in cross-border M&As must
manage. Is it any wonder that cross border mergers are potential minefields that require
the utmost care? Fortunately, there are some basic principles that will make cross-border
mergers work more smoothly. They can be divided into the imperatives of strategic logic
and acquisition integration.8
Summary of Barriers in Implementation of Cross-Border M&A9

Implications of Economic Attitudinal


Legal Barriers Tax Barriers
Supervisory Rules Barriers Barriers
1. Legal uncertainty
35. Political
2. Opaque decision
Interference
making processes
36. Employee’s
3. Legal structures 23. Concerns regarding
reluctance
4. Limits or controls on 14. Uncertainty on financial stability
a) 37. Shareholder
foreign participations Tax arrangements 24. Misuse of
Execution acceptance of
5. Defense mechanisms 15. Uncertainty on supervisory Powers
Risks quotation changes
6. Impediments to VAT regime 25.Supervisory
38.Shareholder and
effective control Approval Process
analyst
7. Difficulties to assess
apprehension of
the financial situation
failure risk
28. Fragmentation
b) On-Off 8. Restriction on offers 16. Exit tax on capital
of the European
Costs gains
Commercial Market
29. Different
17. Transferring
Product Mixes
9.Employment Pricing
30.Non-
legislation 18. Inter-Group VAT
Overlapping Fixed
10. Accounting systems 19. No Homogenous 39. Political
26. Divergences in Costs
C) On- 11. Divergent consumer Loss Compensation Concessions
supervisory Practices 31. Lack of middle-
Going protection rules 20. Specific Domestic 40. Consumer
27. Multiple reporting size institutions
Cost 12. Data protection Tax breaks Mistrust in foreign
requirements 32. Absence of
13. Differences in Private 21.Discriminatory Tax entities
critical size
Law Treatments
33.Market Power
22. Taxation on
34. Differences in
Dividends
Economic Cycle
Cultural Integration in the Process of Cross-Border Merger and
Acquisition

Cross-border mergers and acquisitions (M&A) play an important part in foreign direct
investment (FDI). In the process of cross-border M&A, the enterprises involved will
encounter cultural differences and conflicts. How to integrate these cultural differences
and eliminate the conflicts becomes an important issue for the enterprises. Cultural
integration eliminates conflicts arising from cultural differences by organizing and
amalgamating the values, psychological states and behavior modes of different
communities. The cross-border M&A cultural integration inherits and rectifies the
psychological contract of the target company for minimizing the amount of cultural
conflicts and forming the diversity and unity due to the cultural differences in multi-
national enterprises (Gu & Xue, 2004). Cross-border M&A cultural integration seek to
reduce cultural differences as much as possible in the acquired company. Therefore,
whether the cultural integration is successful or not is critical to the success or failure of a
cross-border M&A. In general, the following problems should be solved in cultural
integration of cross-border M&A. First, it should coordinate the cultural differences of
peoples and states to promote understanding and communicating between the different
communities in one enterprise and to avoid the negative influence arising from the
different thinking models, behaviors, and values. Second, it should coordinate the
different company cultures to eliminate the barriers in leadership styles, communication
models, personnel system, performance appraisals, and social security benefits. Third, it
should establish the company’s core values by integrating diverse cultures to improve the
company’s creativity and competitiveness. Fourth, the effective integration of the
companies’ cultures could provide conditions beneficial for the integration of operations.
Therefore, cultural integration of cross-border M&A plays an important role in helping
the company maximize its capital, technique, sales, and other advantages.

Method for Cultural Integration of Cross-Border M&A

Cultural integration of cross-border M&A is a process to coordinate diverse cultures and


make them mutually exist and develop within an enterprise. However, cultural integration
is not as simple as merging all the different cultures into one, but a process to form a new
multinational corporate model by selecting, absorbing, and integrating cultures. Cross
cultural management is an effective method of realizing the cultural integration of cross-
border M&A successfully. Cross-cultural management refers to a system that an
enterprise, in the course of M&A, selects adaptive pattern of cross-culture management,
overcomes conflicts and unfavorable influences, converts the negative factors into
positive factors, and gains power of the cultural synergy. Cross-cultural management has
its own principles and patterns, which shall be followed in the process of fulfilling cross-
cultural management. Basic principles of cross-cultural management lie in respecting and
understanding the cultures of others, placing importance on communication, and making
adaptive changes. People are the core of cross-cultural management. Culture is reflected
in the thinking and behavior of people. Management is all about getting the best
performance out of people. The buyer should respect the culture of the target company
and try to understand the culture. The company should not use fixed values to judge the
other company’s culture, but should synthesize the company’s strategic significance with
its culture. Communicating with each other effectively and understanding each others’
culture is the most effective way to eliminate cultural conflicts. Establishing a new
culture after M&A is the amalgamation of different cultures and need not have the
cultural imprint of a certain country or nationality. It will be a combination of different
cultures. These four principles are interdependent and in the whole make up the basic
principles of Cross-cultural management. There are four models of cross culture
management to resolve the cultural differences between the buyer and target companies.
The first model is localization strategy, which refers to when each subsidiary of the
company located in other regions or nations is regarded as an independent entity so that
the strategy and decision of the subsidiary can be made according to the local conditions.
The parent company’s operating model is not imposed on the subsidiary. Rather, the
management policy is made according to the local conditions. When the company is
recruiting managers or other staff, there is little consideration given to their nationality or
where they come from. The buyer respects the local culture and benefits from the
localization strategy. The second model is transplanting the culture of the parent
company. In this model, the buyer appoints its people to manage the target company in
order to guarantee communication between the buyer and the target, and the buyer
supervises and controls the target. As a result, the buyer can transplant its culture into the
target company and gradually get the local staff to accept its culture. The third model is
the cultural innovation by integration. In this model, the cultures of buyer and target
companies coexist; a new culture and management pattern are formed through the
integration of the two cultures. Cultural innovation can maximize the cross-cultural
advantage. The fourth pattern uses evasion tactics. In this model, when there is a
tremendous cultural gap between the buyer and the target, it is necessary for the manager
appointed by the buyer to avoid the key cultural differences. Under this circumstance, the
third party shall be asked to bridge the gap between cultures. This model does not address
the problem and has considerable limitations. In general, it only can be used as a
transitional method. Buyers can select one or a combination of two or more of these four
patterns, taking into consideration the cultural character of themselves and their targets,
to culturally integrate.10
The role of Human Resource Management and Cross-Border M&A

The role of HRM in cross-border M&As before conducting our analysis, we briefly
review the nature of the merger process. The literature has dissected the M&A process
into three main stages: pre-announcement; pre-merger; and integration. The pre-
announcement stage involves due diligence. Issues discussed among potential merging
firms in this stage are M&A strategy and the financial structure of the deal. The pre-
merger stage occurs between the announcement of the merger and its closing date and
includes planning for the integration, such as communicating expected roles in the newly
formed entity. The integration stage implies the physical integration of the various
elements of the M&A following the closing date, including personnel. In theory, HRM
can have an influence on the success of M&As in each stage of the process. For example,
during the pre-merger stages, HRM tends to focus on ensuring legal compliance, such as
with regard to equal opportunity and collective bargaining agreements (Mirvis and
Marks, 1992). HRM can also begin the planning process following deal announcement,
for instance by managing retention agreements and assessing compensation differences
between the potentially merging entities. Nevertheless, evidence and practice indicate
that the main role in which HR can influence M&As is in the integration stage, when
M&A practices and policies are implemented. 11

Foreign Acquisitions And Mergers

With the rapid growth in Pakistan's economy, foreign investors are taking a keen interest
in the corporate sector of Pakistan. In the recent years, majority stakes in many
corporations have been acquired by multinational groups. 12
• PICIC by Singapore based Tamasek holdings for $339 million
• Union Bank by Standard Chartered bank for $487 million
Cross-border M&A purchases: Asia Pacific, 1990-1996 (In US Million $) 13
• Prime commercial bank by ABN Amro for $228 million
• PakTel ltd by China Mobile Ltd for $460 million
• Additional
Total 1990-1996 1990
57.6 percent
1991
shares of Lakson 1993
1992
Tobacco company
1994
acquired by
1995 1996
Philip Morris international for $382 million
Deals Value Deals Value Deals Value Deals Value Deals Value Deals Value1 Deals Value Deals Value
Japan 3,178 93,813.371 699 25,132.680 550 8,958.815 320 12,525.037 306 7,193.867 350 10,466.546 498 16,963.018 455 12,573.408

Hong Kong 650 30,907.742 39 1,132.169 55 852.118 80 9,558.622 141 8,388.019 145 3,413.563 111 3,920.997 79 3,642.254

Australia 584 23,683.622 77 2,084.391 71 1,039.310 75 2,733.147 71 2,965.759 106 3,855.686 102 5,568.624 82 5,436.705

Malaysia 356 15,439.766 5 160.151 13 235.455 15 143.348 41 1,219.861 98 7,020.704 86 1,252.910 98 5,407.337

Korea 337 15,200.842 30 475.412 28 374.522 26 778.774 24 846.762 53 3,555.335 95 6,012.351 81 3,157.686

Singapore 518 11,912.602 23 243.150 23 416.790 41 553.801 85 2,117.315 124 1,810.581 115 2,764.603 107 4,006.362

China 187 11,810.122 4 1,336.400 4 102.780 27 1,688.302 70 5,450.280 29 1,635.793 34 200.392 19 1,416.175

Thailand 128 7,290.200 3 0 6 14.710 10 1,638.400 19 533.361 33 180.618 34 3,576.788 23 1,346.323

Taiwan 163 6,976.457 23 1,259.429 11 136.560 18 1,001.315 23 882.184 20 760.024 45 821.228 23 2,115.717

New 117 4,145.969 31 974.417 11 141.150 17 603.117 17 807.938 15 78.177 11 481.409 15 1,059.761
Zealand

Indonesia 76 2,307.838 3 187.300 6 57.970 6 106.450 13 247.349 14 519.328 23 614.827 11 613.993

India 52 1,512.147 1 0 4 270.000 8 421.916 1 0 12 619.460 21 200.777 5 0

Philippines 21 515.190 3 18.450 5 50.500 5 433.240 5 11.000 3 2.000

Brunei 8 470.663 1 4.400 1 202.000 1 1.000 3 81.700 2 181.563

Pakistan 2 107.206 1 106.667 1 0.539

Vietnam 9 27.060 1 0 1 0 2 19.500 3 4.500 1 1.500 1 1.560

Bangladesh 1 11.867 1 11.867

Macau 2 10.000 1 10.000 1 0

Cambodia 2 7.650 1 0 1 7.650

Nepal 1 3.400 1 3.400

Myanmar 2 1.020 1 0 1 1.020

Mongolia 1 0.76 1 0.76

Total 6,390 226,153.71 939 32,985.50 786 12,623.03 652 31,928.90 812 30,854.70 1,010 34,372.21 1,185 42,483.99 1,006 40,964.78

“These cross-border transactions enable clients to achieve global reach through


international acquisitions, and to maximize value through the sale of their business to
international strategic acquirers.”

Major M&A in 1990’s 14

Rank Year Purchaser Purchased Transaction value


(in mil. USD)
1 1999 Vodafone AirTouch Mannesmann 183,000
2 1999 Pfizer Warner-Lambert 90,000
3 1998 Exxon Mobil 77,200
4 1999 Citicorp Travelers Group 73,000
5 1999 SBC Communication Ameritech Corp. 63,000
6 1999 Vodafone Group AirTouch 60,000
7 1999 Bell Atlantic GTE 53,630
8 1998 BP Amoco 53,000
9 1999 Qwest Communication US West 48,000
10 1997 WorldCom MCI Communicarion 42,000

Major M&A from 2000 to Present 15


Rank Year Purchaser Purchased Transaction value
(in mil. USD)

1 2000 America Online Inc. Time Warner 164,747


2 2004 Glaxo Wellcome SmithKline Beecham Plc. 75,961
3 2004 Royal Dutch Shell Transport 74,559
Petroleum Co. & Trading Co
4 2006 AT&T Inc. Bell South Corp. 72,671
5 2001 Comcast Corporation AT&T Broadband 72,041
& Internet Service
6 2004 Sanofi-Synthelabo Aventis SA 60,243
7 2000 Spin-off: Nortel 59,974
Networks Corporation
8 2002 Pfizer Inc. Pharmacia Corporation 59,515
9 2004 JP Morgan Chase Bank One Corp 58,761
& Co
10 2000 Fusion: America Time Warner 164,747
Online Inc.

Notes and References

1. This is a summary of an article that appeared in Financial Times Mastering Global


Business: The Complete MBA Companion in Global Business, London: Financial Times
Pitman Publishing.Finkelstein, S. 1999. "Safe ways to cross the merger minefield." p. 119-
123.Sydney Finkelstein is the Steven Roth Professor of Management at the Tuck School of
Business at Dartmouth
2. Cross-Border Mergers and Acquisitions and the Law: A General Introduction (Studies in
Transnational Economic Law) www.target.com.
3. Cross-Border Mergers and Acquisitions by Sydney Finkelstein
4. www.wikipedia.org
5. FDI into Pakistan jumps 180.6% in 1st 9 months of FY06
6. Pakistan News Service - PakTribune
7. Daily Times - Leading News Resource of Pakistan
8. Private Equity in Pakistan, Israel, and Egypt, by Sethi, Arjun Nov 2007, accessed December
29, 2007.
9. Macroeconomic Stability of Pakistan: The Role of the IMF and World Bank (1997–2003)
10. International Management Review Vol. 3 No. 2 2007 The Cultural Integration in the Process
of Cross-border Mergers and Acquisitions Zhanwen Zhu, Haifeng Huang China’s Research
Center for Economic Transition, Beijing University of Technology, China
11. The role of human resource management in cross-border mergers and acquisitions
Ruth V. Aguilera and John C. Dencker Int. J. of Human Resource Management 15:8
December 2004 1355–1370
12. Lien, Kathy (2005-10-12). Mergers And Acquisitions - Another Tool For Traders.
Investopedia. Retrieved on 2007-06-17.
13. Courtesy KPMG
14. &15. Facts collected from Wikipedia

Further Notes

• Ahmad, Viqar and Rashid Amjad. 1986. The Management of Pakistan’s Economy, 1947-82.
Karachi: Oxford University Press.
• Ali, Imran. 1997. ‘Telecommunications Development in Pakistan’, in E.M. Noam (ed.),
Telecommunications in Western Asia and the Middle East. New York: Oxford University
Press.
• Ali, Imran. 2001a. ‘The Historical Lineages of Poverty and Exclusion in Pakistan’. Paper
presented at Conference on Realm, Society and Nation in South Asia. National University of
Singapore.
• Ali, Imran. 2001b. ‘Business and Power in Pakistan’, in A.M. Weiss and S.Z. Gilani (eds),
Power and Civil Society in Pakistan. Karachi: Oxford University Press.
• Ali, Imran. 2002. ‘Past and Present: The Making of the State in Pakistan’, in Imran Ali, S.
Mumtaz and J.L. Racine (eds), Pakistan: The Contours of State and Society. Karachi: Oxford
University Press.
• Ali, Imran, A. Hussain. 2002. Pakistan National Human Development Report. Islamabad:
UNDP.
• Ali, Imran, S. Mumtaz and J.L. Racine (eds). 2002. Pakistan: The Contours of State and
Society. Karachi: Oxford University Press.
• Amjad, Rashid. 1982. Private Industrial Investment in Pakistan, 1960-70. London:
Cambridge University Press.
• Andrus, J.R. and A.F. Mohammed. 1958. The Economy of Pakistan. Stanford: Stanford
University Press.
• Barrier, N.G. 1966. The Punjab Alienation of Land Bill of 1900. Durham, NC: Duke
University South Asia Series.
• Jahan, Rounaq. 1972. Pakistan: Failure in National Integration. New York: Columbia
University Press.
• Kessinger, T.G. 1974. Vilyatpur, 1848-1968. Berkeley and Los Angeles: University of
California Press.
• Kochanek, S.A. 1983. Interest Groups and Development: Business and Politics in Pakistan.
New Delhi: Oxford University Press.
• LaPorte, Jr, Robert and M.B. Ahmad. 1989. Public Enterprises in Pakistan. Boulder,
Colorado: Westview Press.
• Latif, S.M. 1892. Lahore. Lahore: New Imperial Press, reprinted 1981, Lahore: Sandhu
Printers.
• Low, D.A. (ed.). 1991. The Political Inheritance of Pakistan. London: Macmillan.
• Noman, Omar. 1988. The Political Economy of Pakistan. London: KPI.
• Papanek, G.F. 1967. Pakistan’s Development: Social Goals and Private Incentives.
Cambridge, Massachusetts: Harvard University Press.
• Raychaudhuri, Tapan and Irfan Habib (eds). 1982. The Cambridge Economic History of
India, 2 vols. Cambridge: Cambridge University Press
• White, L.J. 1974. Industrial Concentration and Economic Power. Princeton, N.J.: Princeton
University Press.
• Ziring, Lawrence. 1980. Pakistan: The Enigma of Political Development. Boulder, Colorado:
Folkestone.
• Ali, Imran. August 2002. ‘The Historical Lineages of Poverty and Exclusion in Pakistan’,
South Asia, XXV(2).
• Ali, Imran and S. Mumtaz. 2002. ‘Understanding Pakistan—The Impact of Global, Regional,
National and Local Interactions’, in Imran Ali, S. Mumtaz and J.L. Racine (eds), Pakistan:
the Contours of State and Society. Karachi: Oxford University Press.
• Hasan, Parvez. 1998. Pakistan’s Economy at the Crossroads: Past Policies and Present
Imperatives. Karachi: Oxford University Press.
• Hussain, Ishrat. 1999. Pakistan: The Economy of an Elitist State. Karachi: Oxford University
Press.
• Straub, Thomas: Reasons for frequent failure in Mergers and Acquisitions - A
comprehensive analysis, Deutscher Universitätsverlag, Wiesbaden 2007. ISBN 978-
3835008441
• Platt, Gordon. Cross-Border Mergers Show Rising Trend As Global Economy Expands.
findarticles.com. Retrieved on 2007-08, www.wikipedia.org

Abbrevations

• FDI Foreign Direct Investment


• M&A Mergers and acquisitions
• SBP State Bank Of Pakistan
• BP British Petroleum
• MCI Microwave Communications, Inc.
• HRM Human Resource Management

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