(Answered) Minimal returns to the acquiring firm stockholders

Finance

Problem: The empirical evidence strongly indicates that the stockholders of the target firm realize wealth gains while the stockholders in the acquiring firm gain little, if anything from an acquisition. Although there exists no definitive answer as to why this is the case, several possible explanations have been proposed.

Required: List and explain three of possible explanations for the minimal returns to the acquiring firm's stockholders. Support your statements with examples

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