Obstacles to Future Prosperity

Mr Heseltine offers a positive approach to prosperity, believing that obstacles are there to be overcome. There is potential to be realised through the GATT agreement, and developments such as information highways and the growth of tourism. Nevertheless there are some major obstacles to be overcome: lack of education, over-regulation and lack of public funding, for example. Solutions to these obstacles require new techniques, such as the inter-related use of public and private resources, and new attitudes of mind.     

Competition and the medium of exchange in takeovers

The role of the medium of exchange in competition among biddersand its effect on returns to stockholders in corporate takeoversare investigated. Consistent with recent empirical evidence,our model shows that stockholders of both acquiring and targetfirms obtain higher returns when a takeover is financed withcash rather than equity, and that returns to target shareholdersincrease with competition. The model predicts that the factionof synergy captured by the target decreases with the level ofsynergy. Finally, it is shown that, as competition increases,the case component of the offer as well as the proportion ofcase offered increases.