Abstract
Many M&A transactions are framed and publicly announced as mergers of equals when in reality they are merely acquisitions. This paper investigates why acquisitions are inaccurately framed as merger of equals and how management communication strategies employed in the pre-merger phase are related to tangible merger outcomes. Specifically in the empirical context of all firm combination transactions announced as merger of equals between 1995 and 2007 in the United States, this paper examines the effect of inaccurate framing on post-merger control rights and the target premium. The results suggest that in pseudo mergers of equals, target shareholders gains are reduced.