Reason for Share Price dip



0
In the example you gave between TATA steel and Korus steel company, you mentioned that owing to the cost of the transaction (Acquisition), the share price of TATA went down for some years, my question, why did the shares dip, is this always the case for this kind of acquisition?

1 Answer(s)


0

No,not usually the case. Heavy investment in new assets could reduce profits, Public perception of the new management team could make share price to drop.