When two public companies merge, the profit per share of the new company may also increase because the number of shares has decreased. In contrast, the profit of the new company remained unchanged or even decreased. – It is therefore important in the case of mergers and acquisitions to look at the profit generated by the new entity and not at the profit per share.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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