Financial Times FT.com

Investors are crucial to reducing flowback risk

By Lina Saigol

Published: September 17 2009 22:33 | Last updated: September 17 2009 22:33

Kraft’s £10.2bn ($16.8bn) unsolicited cash-and-shares approach for Cadbury has reawakened the debate about the problem of flowback in cross-border deals.

In anything other than an all-cash deal, when a bidder acquires a company in another country, the target’s investors give up domestic shares and receive foreign shares.

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