Cross-Border Mergers and Acquisitions The true motivation for cross-border mergers and acquisitions is a traditional one:to build shareholder value. The following exhibit justifies this global expansion as a result of the following: -Publicly traded MNEs live and die,in the eyes of the shareholders,by their share price If the MNE's share price is a combination of the earnings of the firm and the market's opinion of those earnings and the price-to-earnings multiple, management must strive to grow both Copyright 2007 Pearson Addison-Wesley.All rights reserved. 19-4Copyright © 2007 Pearson Addison-Wesley. All rights reserved. 19-4 Cross-Border Mergers and Acquisitions • The true motivation for cross-border mergers and acquisitions is a traditional one: to build shareholder value. • The following exhibit justifies this global expansion as a result of the following: – Publicly traded MNEs live and die, in the eyes of the shareholders, by their share price – If the MNE’s share price is a combination of the earnings of the firm and the market’s opinion of those earnings and the price-to-earnings multiple, management must strive to grow both