Utility firms are subject to peculiar regulatory characteristics that may allow for unique wealth effects resulting from acquisitions. The wealth effects derived from acquisitions of utility firms is measured and the analysis reveals negative wealth effects for acquirers and positive wealth effects for targets. However, the wealth effects are generally less favorable for utility firm acquirers than other acquirer firms because of the regulatory barriers that prevent them from pursuing attractive targets.
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Bartunek et al. (1993) studied this question.
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