GCI study reveals global M&A coverage in US is mostly negative

NEW YORK: A GCI Group study has revealed that negative coverage of five large-scale global M&As exceeded positive coverage in the US media.

NEW YORK: A GCI Group study has revealed that negative coverage of five large-scale global M&As exceeded positive coverage in the US media.

NEW YORK: A GCI Group study has revealed that negative coverage of

five large-scale global M&As exceeded positive coverage in the US

media.



Jim Cox, EVP and managing director of GCI’s North American corporate

practice, said the study shows how challenging it can be to merge two

distinct corporate cultures. ’At a time when management wants to be

building enthusiasm and a strong brand for the new company, the merger

integration troubles are often competing for headlines,’ he said.

According to the study, 41.7% of the major media news placements focused

on negative issues, while 32.7% of coverage was positive and 25.6%

neutral.



The five mergers analyzed were British Petroleum and Amoco; Citicorp and

Travelers Group; Daimler-Benz and Chrysler; Deutsche Bank and Bankers

Trust; and Exxon and Mobil.



A number of other M&A-related studies have pointed out that PR and IR

pros working on these deals have their work cut out for them. An A.T.

Kearney look at 115 global mergers between 1993 and 1996 revealed that

58% of the deals failed to create substantial returns for shareholders,

while KPMG found that 83% of the 700 largest cross-border deals between

1996 and 1998 failed to produce shareholder benefits and that 53%

actually destroyed shareholder value.



’One of the things that we see for law firms and companies is that they

will shout how great the merger is going to be today, but then they

don’t follow up,’ said Levick president Richard Levick. ’You need to

continue to focus on the benefits to clients and consumers.’



Have you registered with us yet?

Register now to enjoy more articles and free email bulletins

Register
Already registered?
Sign in