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Article: Prospecting for acquisitions. (planning investments in Eastern Europe)(Chairman's Agenda: Acquiring in Eastern Europe)
- Article from:
- Directors & Boards
- Article date:
- January 1, 1991
- Author:
CopyrightCOPYRIGHT 1991 Directors and Boards. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Look for the laws all over Eastern Europe to be modified further to make acquisition of equity stakes more attractive.
Starting up a new business through joint ventures with East Bloc partners has been the traditional entry strategy into Eastern Europe, but to date Western companies have been much more hesitant about acquiring major equity stakes in existing enterprises and assets. So far, Western investors have announced or completed just over one hundred acquisitions in Eastern Europe. In contrast, they have entered into more than 3,500 joint venture agreements in Eastern Europe, including the U.S.S.R.
Why have there been relatively few acquisitions ...