Table 3 - Bid premium N Panel A - All acquisitions Acquirer Total Majority owner bid Main owner bid Other insider bid Other acquisitions Way of payment Cash Stock Panel B - Swedish acquirers Acquirer Total Insider bid Majority owner bid Main owner bid Way of payment Cash Stock Panel C - Foreign acquirers Acquirer Total Insider bid Way of payment Cash Stock
185 49 27,7% 28,4% 22,8% 19,1% 32,4% 44,3% 27,3% 15,7% 31,5% 47,7% 323 190 124 171 26,8% 24,8% 25,0% 25,1% 21,8% 19,9% 18,0% 19,9% 32,0% 27,6% 31,1% 28,0% 25,5% 26,3% 28,3% 27,4% 32,8% 24,8% 22,8% 23,7%
Total
High M/B
Low M/B
High ret
Low ret
407 137 198 220 187
28,8% 24,3% 24,5% 24,3% 33,6%
22,7% 17,2% 19,8% 19,9% 25,4%
37,8% 33,2% 29,5% 29,0% 46,5%
25,6% 26,1% 24,8% 24,2% 27,5%
35,3% 22,6% 24,6% 25,4% 45,2%
255 57
30,1% 30,4%
23,9% 20,8%
39,4% 48,4%
26,7% 20,1%
34,2% 50,9%
86 30
35,8% 21,1%
25,1% 19,6%
67,3% 47,4%
25,8% 14,0%
52,3% 30,1%
70 8
36,3% 42,6%
26,3% 24,2%
73,0% 73,3%
25,8% 30,1%
47,0% 78,4%
Table 3 is based on information, derived from the databases Affärsdata and Sixtrust, of all 407 acquisitions that have been made on the Stockholm Stock Exchange between 1981 and 2008, illustrating the bid premium. The bid premium is defined as the difference between the bid rate and the average share price 20 days prior to the bid and it is expressed on a total basis and according to the acquired companies’ levels of M/B and stock returns. High/low M/B and returns are defined as the upper/lower quartiles and pre-M/B and 12-months return have been utilized when calculating. Pre-M/B is defined as the average 20-days pre-acquisition share price multiplied by the total number of outstanding shares, divided by the book value of equity derived from the latest pre-acquisition annual report. Furthermore, the bid premium is illustrated by the characteristics of the acquiring companies including Swedish and foreign (including the Nordic countries) origin, insiders and non-insiders and way of payment (cash or stock). An insider consists of a majority owner (more than 50 % of shares), a main owner (more than 20% of shares) or an acquirer having a close corporate insight in the form of board/management work prior to the acquisition. The total number of acquired companies according to their specifics is also given (N).
Table 4 - Bid premium relative to industry N Manufacturing Total Swedish acquirers Foreign acquirers Trade Total Swedish acquirers Foreign acquirers Services Total Swedish acquirers Foreign acquirers Financial Total Swedish acquirers Foreign acquirers
79 56 23 35,8% 34,9% 38,0% 24,8% 27,6% 19,8% 55,0% 48,5% 79,5% 20,8% 22,8% 18,9% 41,5% 43,4% 29,6%
Total
High M/B
Low M/B
High ret
Low return
176 127 49
29,5% 26,5% 37,4%
23,8% 20,8% 33,1%
42,1% 31,2% 75,0%
29,6% 28,1% 33,2%
39,7% 31,4% 63,6%
33 30 3
25,0% 25,6% 19,8%
20,9% 21,2% 19,8%
39,0% 39,0%
24,7% 26,0% 19,5%
28,6% 28,6%
-
-
119 108 11
24,3% 23,8% 28,7%
18,4% 18,2% 19,1%
27,6% 27,3% 30,7%
20,3% 21,2% 17,8%
24,1% 24,1%
-
Table 4 is based on information, derived from the databases Affärsdata and Sixtrust, of all 407 acquisitions that have been made on the Stockholm Stock Exchange between 1981 and 2008, illustrating the bid premium of the acquired companies relative to their industries. The bid premium is defined as the difference between the bid rate and the average share price 20 days prior to the bid and it is expressed both totally and according to the acquired companies’ levels of M/B and stock returns. High/low M/B and returns are defined as the upper/lower quartiles and pre-M/B and 12-months return have been utilized when calculating. Pre-M/B is defined as the average 20-days pre-acquisition share price multiplied by the total number of outstanding shares, divided by the book value of equity derived from the latest pre-acquisition annual report. Furthermore, the bid premium is illustrated by the characteristics of the acquiring companies including Swedish and foreign (including the Nordic countries) origin. The total number of the acquired companies according to their specifics is also given (N).
Table 5 - Bid premium relative to integration N All acquisitions Horizontal integration Vertical integration No integration Swedish acquisitions Horizontal integration Vertical integration No integration Foreign acquisitions Horizontal integration Vertical integration No integration
238 11 160 30,0% 22,8% 27,2% 29,1% 25,9% 25,7% 28,0% 22,5% 28,9% 35,0% 30,8% 38,0% 25,7% 0,6% 22,5%
Total
1982-91
1992-97
1998-2002
2003-08
158 9 156
26,7% 22,3% 27,1%
25,5% 25,9% 25,8%
24,9% 23,5% 28,9%
29,4%
36,0%
29,6% 0,6% 23,9%
80 2 4
36,3% 25,2% 31,3%
50,6%
22,8%
38,4% 19,5%
-
42,3% 30,8% 75,9%
23,5%
3,6%
Table 5 is based on information, derived from the databases Affärsdata and Sixtrust, of all 407 acquisitions that have been made on the Stockholm Stock Exchange between 1981 and 2008, illustrating the bid premium relative to integration or no integration. The bid premium is defined as the difference between the bid rate and the average share price for the 20 days prior to the bid. The acquisitions are divided into four periods of time, showing how the bid premium has development over time and also illustrating the individual features of integration or no integration of these periods. Horizontal integration includes an acquired company that acts in the same industry as the acquirer and vertical integration is by definition when a company acquires a supplier or a customer. In addition, there is a distinction between Swedish and foreign (including the Nordic countries) acquiring companies and the total number of the acquired companies according to their specifics is also given (N).
Table 6 - Bid premium intervals %
0-15 15-30 30-45 45-60 60-
N
97 149 103 32 26
Total
23,8% 36,6% 25,3% 7,9% 6,4%
1982-91
24,6% 35,2% 27,9% 8,4% 3,9%
1992-97
19,0% 46,8% 21,5% 6,3% 6,3%
1998-2002 2003-08
14,4% 35,6% 27,8% 8,9% 13,3% 42,4% 28,8% 18,6% 6,8% 3,4%
Table 6 is based on information, derived from the databases Affärsdata and Sixtrust, of all 407 acquisitions that have been made on the Stockholm Stock Exchange between 1981 and 2008, illustrating the bid premium in the form of intervals. The bid premium is defined as the difference between the bid rate and the average share price for the 20 days prior to the bid. The acquisitions are divided into four periods of time, showing how the bid premium has development over time when separating it into intervals of 15%. The total number of the acquired companies according to their specifics is also given (N).
Table 7 - 20 largest bid premiums
Bid premium 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 244,4% 235,5% 141,8% 140,3% 116,7% 111,8% 110,5% 110,0% 95,3% 90,2% 81,0% 77,4% 75,9% 72,6% 70,4% 69,4% 68,9% 68,6% 65,6% 65,5%
Company Mogul Jobline International Artema Scandinavia Online Bastionen Syd Bergaliden Programator Uddeholms Duni Fundia Östgötabanken Scandiafelt Gylling Optima Folkebolagen Monark Stiga Kullenberg I Spectra-Physics Lundgrens Elektriska Meto Guide Konsult
Industry Services Services Manufacturing Services Financial Financial Services Manufacturing Manufacturing Manufacturing Financial Manufacturing Manufacturing Handel Manufacturing Manufacturing Manufacturing Manufacturing Manufacturing Services
Acquirer Addnode TMP Worldwide Inc Cardiac Science Inc Eniro Klövern I Bergaliden holding Cap Gemini Voest-Alpine / Trustor I Marieberg Fundia Intressenter Danske Bank Scapa Group plc Johnson Controls Inc Lindab I Grimaldi Industri Euroway Thermo Instruments Inc GTIE S.A. Checkpoint Inc Framfab
Bid-date 2003-02-28 2001-05-25 2001-01-10 2001-11-20 1994-02-07 1992-12-15 1992-02-10 1990-12-11 1987-03-17 1991-05-14 1997-03-17 1991-11-18 2000-08-29 2000-05-08 1999-11-19 1985-03-13 1999-01-07 1999-12-15 1999-08-11 1999-12-03
Value Mkr 57 1154 188 523 659 459 479 845 1468 249 2845 351 598 145 1247 220 2819 255 2226 1495
Pre-M/B 0,39 0,51 0,91 0,66 1,12 0,20 2,81 0,48 1,25 0,57 1,86 0,99 3,46 0,85 1,03 1,20 1,04 1,47 2,90 5,38
6 month ret -23,2% -52,3% -21,1% -17,1% -80,6% 19,4% 88,7% -6,8% 27,2% 6,8% -3,0% 26,2% -10,4% -23,3% -36,2% -41,5% -18,2% -36,6% 0,0% 7,5%
Way of payment Stock Cash Stock Cash Stock Cash Cash Cash Alternative Cash Cash Cash Cash Cash Cash Other Cash Cash Cash Stock
Table 7 is based on information, derived from the databases Affärsdata and Sixtrust, of all 407 acquisitions that have been made on the Stockholm Stock Exchange between 1981 and 2008, illustrating the 20 largest bid premiums, including both Swedish and foreign (including the Nordic countries) acquirers. The bid premium is defined as the difference between the bid rate and the average share price for the 20 days prior to the bid. A detailed description including acquired company, industry, acquiring company, bid-date, market value, pre-M/B, 6-months return and way of payment is provided. Pre-M/B is defined as the average 20-days pre-acquisition share price multiplied by the total number of outstanding shares, divided by the book value of equity derived from the latest pre-acquisition annual report.
Table 8 - 10 largest foreign bid premiums
Bid premium 1 2 3 4 5 6 7 8 9 10 235,5% 141,8% 110,5% 110,0% 90,2% 81,0% 77,4% 75,9% 68,9% 68,6%
Company Jobline International Artema Programator Uddeholms Fundia Östgötabanken Scandiafelt Gylling Optima Spectra-Physics Lundgrens Elektriska
Industry Services Manufacturing Services Manufacturing Manufacturing Financial Manufacturing Manufacturing Manufacturing Manufacturing
Acquirer TMP Worldwide Inc Cardiac Science Inc Cap Gemini Voest-Alpine / Trustor I Fundia Intressenter Danske Bank Scapa Group plc Johnson Controls Inc Thermo Instruments Inc GTIE S.A.
Bid-date 2001-05-25 2001-01-10 1992-02-10 1990-12-11 1991-05-14 1997-03-17 1991-11-18 2000-08-29 1999-01-07 1999-12-15
Value Mkr 1 154 188 479 845 249 2 845 351 598 2 819 255
Pre-M/B 0,51 0,91 2,81 0,48 0,57 1,86 0,99 3,46 1,04 1,47
6 month ret -52,3% -21,1% 88,7% -6,8% 6,8% -3,0% 26,2% -10,4% -18,2% -36,6%
Way of payment Cash Stock Cash Cash Cash Cash Cash Cash Cash Cash
Table 8 is based on information, derived from the databases Affärsdata and Sixtrust, of all acquisitions that have been made on the Stockholm Stock Exchange between 1981 and 2008, illustrating the ten largest foreign bid premiums. The bid premium is defined as the difference between the bid rate and the average share price for the 20 days prior to the bid. A detailed description including acquired company, industry, acquiring company, bid-date, market value, pre-M/B, 6-months return and way of payment is provided. Pre-M/B is defined as the average 20days pre-acquisition share price multiplied by the total number of outstanding shares, divided by the book value of equity derived from the latest pre-acquisition annual report.
Table 9 - 10 largest Swedish bid premiums
Bid premium 1 2 3 4 5 6 7 8 9 10 244,4% 140,3% 116,7% 111,8% 95,3% 72,6% 70,4% 69,4% 65,5% 64,9%
Company Mogul Scandinavia Online Bastionen Syd Bergaliden Duni Folkebolagen Monark Stiga Kullenberg I Guide Konsult Allgon
Industry Services Services Financial Financial Manufacturing Handel Manufacturing Manufacturing Services Manufacturing
Acquirer Addnode Eniro Klövern I Bergaliden holding Marieberg Lindab I Grimaldi Industri Euroway Framfab LGP Telecom
Bid-date 2003-02-28 2001-11-20 1994-02-07 1992-12-15 1987-03-17 2000-05-08 1999-11-19 1985-03-13 1999-12-03 2003-01-21
Value Mkr 57 523 659 459 1 468 145 1 247 220 1 495 758
Pre-M/B 0,39 0,66 1,12 0,20 1,25 0,85 1,03 1,20 5,38 1,01
6 month ret -23,2% -17,1% -80,6% 19,4% 27,2% -23,3% -36,2% -41,5% 7,5% -10,6%
Way of payment Stock Cash Stock Cash Alternative Cash Cash Other Stock Stock
Table 9 is based on information, derived from the databases Affärsdata and Sixtrust, of all 407 acquisitions that have been made on the Stockholm Stock Exchange between 1981 and 2008, illustrating the ten largest Swedish bid premiums. The bid premium is defined as the difference between the bid rate and the average share price for the 20 days prior to the bid. A detailed description including acquired company, industry, acquiring company, bid-date, market value, pre-M/B, 6-months return and way of payment is provided. Pre-M/B is defined as the average 20days pre-acquisition share price multiplied by the total number of outstanding shares, divided by the book value of equity derived from the latest pre-acquisition annual report.
Table 10 - Bid premiums, more than one bid
Bid premium 64,1% 57,5% 47,3% 47,2% 43,0% 42,1% 41,0% 39,4% 35,8% 32,2% 29,7% 27,9% 26,6% 24,6% 24,5% 23,2% 22,1% 21,7% 21,3% 20,1% 19,6% 19,4% 19,0% 17,9% 16,4% 16,3% 14,1% 13,2% 12,0% 11,9% 8,4% 6,5% 3,6%
Company Finansrutin data Svenska Energinät Dahl International Hasselfors Martinsson Orrefors Kosta Boda Norra Nordbanken Hexagon I Protorp Capio Gant Hoist II Lindab I Memory data OMX Anglo Scandinavian Investment Trust Arjo Proventus II Diligentia II ICB Shipping Swegon Munksjö II Bahco II Fabege I Frigoscandia Tryckinvest Schatullet ABV Esselte Business Systems Näckebro Birka Kraft Scandiaconsult Pandox
Industry Services Manufacturing Trade Manufacturing Trade Manufacturing Financial Financial Financial Services Services Financial Manufacturing Services Financial Financial Manufacturing Financial Financial Services Manufacturing Manufacturing Financial Financial Services Manufacturing Financial Manufacturing Manufacturing Financial Manufacturing Services Financial
Acquirer Förenade Liv Graninge EQT/Ratos Assi-Domän Atle OKB Holding Nordbanken II Munksjö I Volvo / Skanska Opica Procastor S.A. Mikael Wirén Lindab intressenter Memory International Nasdaq Stock Market Scottish Cities Investment Trust Plc Getinge Weil Invest Skandia (Liv) Frontline Latour Jefferson Smurfit Industrivärden Näckebro ASG Qubecor Printing Scandinavia Latour NCC Esselte Fabege II Kinnevik Ramböll Apes Holding
Bid-date 1993-03-03 1991-04-10 1999-02-10 1995-09-01 1999-09-16 1996-10-11 1989-12-07 1990-06-06 1992-10-19 2006-09-01 2007-12-11 2003-12-18 2001-05-14 1990-10-01 2007-05-25 1991-09-27 1995-07-13 1995-02-24 2000-03-20 1997-09-01 1995-04-03 2002-01-29 1991-10-17 1997-06-03 1995-08-07 1998-07-09 1984-02-28 1988-01-29 1989-10-26 1998-09-08 1992-09-28 2003-02-17 2003-11-21
Value Mkr 14 303 2 496 1 257 282 523 5 608 1 754 1 310 12 918 5 199 279 3 312 96 24 852 170 1 976 2 462 5 644 3 237 210 3 337 2 649 1 882 1 809 1 771 202 2 271 9 303 3 002 4 246 1 099 2 615
Pre-M/B 0,56 4,80 1,23 1,21 0,62 1,78 1,86 1,51 1,19 2,11 14,26 1,15 2,00 2,00 4,34 7,61 2,44 1,04 0,91 1,01 1,34 1,16 1,13 4,34 1,16 3,57 3,31 6,31 1,70 0,78 0,89 2,72 1,31
6 month ret 33,3% -18,7% -29,1% 1,8% -45,6% 2,4% 18,5% -8,0% -13,2% -9,6% -9,6% -70,3% 28,9% -2,5% 31,1% 5,3% -65,9% 5,6% -50,7% 6,7% 17,3% 12,2% -19,0% -33,1% 17,8% 0,0% 23,6% 6,8% 15,0% -4,5% -6,0% 18,1% 51,4%
Way of payment Cash Cash Cash Cash Cash Cash Cash Other Cash Cash Cash Cash Cash Cash Mix Alternative Mix Other Cash Cash Cash Cash Cash Cash Mix Cash Other Alternative Cash Cash Other Cash Cash
Table 10 is based on information, derived from the databases Affärsdata and Sixtrust, of all acquisitions that have been made on the Stockholm Stock Exchange between 1981 and 2008, illustrating the bid premiums when there were other bids involved. The bid premium is defined as the difference between the bid rate and the average share price for the 20 days prior to the bid. A detailed description including acquired company, industry, acquiring company, bid-date, market value, pre-M/B, 6-months return and way of payment is provided. Pre-M/B is defined as the average 20-days pre-acquisition share price multiplied by the total number of outstanding shares, divided by the book value of equity derived from the latest pre-acquisition annual report.