An extension to this model and Werden and Froeb (1998) but allowing for entry is Spector (2003) who finds that profitable mergers with no technological synergies are harmful for consumers regardless of fixed costs or entry conditions.
Such a trade would prove to be profitable if the merger were completed.
After so much turbulence, airlines are trying to chart a more profitable course through mergers and a renewed focus on business and first class.
In a conference call with investors yesterday as the company reported its first profitable quarter since the merger, Mr. Parsons said he remained confident in the company's accounting and reporting, noting that its outside auditors, Ernst & Young, had certified its books twice -- at the time results were first reported and again in response to the newspaper articles last week.
In 1997, the bank, fearing that Mr. Ebner would sell out to its rival, Credit Suisse, went along with a takeover by a smaller rival, the Swiss Bank Corporation, to form UBS. Eventually, staff cutbacks were made, and the merger was profitable for Mr. Ebner.
In Deneckere and Davidson (1985) every merger is profitable, due to upward-sloping reaction functions.
If a proposed merger is profitable as a whole, any respondent will undoubtedly accept it, since the proposer will offer the same profits earned the previous period plus an epsilon to the respondent.
In 2007, he had engineered the merger of a profitable but staid midsized specialty firm LeBoeuf, Lamb, Greene & MacRae with a less profitable but much better-known firm, Dewey Ballantine.
In 2007, he had engineered the merger of a profitable but staid midsized specialty firm — LeBoeuf, Lamb, Greene & MacRae — with a less profitable but much better-known firm, Dewey Ballantine.
The move sets the stage for the eventual merger between the profitable parts of Alitalia and Air One, a smaller, private Italian airline, under a plan drawn up by the Italian bank Intesa Sanpaolo.
