LI sizzles with $7 billion in mergers
January 04, 2015
Executives of public companies felt compelled to keep earnings per share rising to keep pace with the stock market, said Alon Kapen, a partner at the Uniondale law firm Farrell Fritz.
"There's pressure on them . . . to justify their stock prices," he said. "Earnings haven't risen commensurate with [stock] prices."
Their choices: grow the company organically, increase per-share value by buying back stock, or make acquisitions in an effort to increase earnings.
To read the full article please click here