What is a Bust-Up Takeover?

Bankruptcy mergers are a special case of corporate mergers and acquisitions. In the case of mergers and acquisitions of financially insolvent enterprises, in accordance with general market rules, the value of the acquired enterprise that cannot be measured by accounting exceeds its net debt. For example, the acquisition of Barings by ING Financial Group in the Netherlands and the acquisition of Peregrine by a French bank both took advantage of the talent and management advantages of the two companies, as well as good securities sales networks and other intrinsic value factors. ^[1]