Guess that’s not happening…
2012/10/10 Leave a comment
So I wonder how the EADS shareholders feel about taking a hit for a merger that never happened. Oddly enough, it seems like the German government is actually looking out for shareholders in blocking the deal. Most analysts couldn’t figure out why they were trying to do this. EADS / Airbus does well enough on its own when not making blunders like the A380. BAE does well on its own because it has access to the U.S. defense market in a way that a partially government owned continental firm would never have (see: tanker competition; see also: special alliance). I’m still puzzled by the logic of this.
There are great mergers out there in our field. Pittsburgh robotics firm RedZone has gone on acquisition kick and bought up companies that provide software and solutions for larger diameter pipes to build a complete sewer solution. iRobot has bought Evolution Robotics when it seems like someone else’s mousetrap had some cool features. Both of these create value for the company and have clear economic rationales underlying them.
Let’s hope that robotics can keep our business combinations on the path to having economic rationale.