Revisiting and reinforcing the Farmers Fox Theory: A study (test) of three cases of cross-border inbound acquisition transactions

This paper aims to revisit and reinforce the early development of Farmers Fox Theory (Reddy et al., 2014a) by analysing three cases in the cross-border inbound acquisitions stream. A qualitative case method is adopted to explore the findings from the sample cases, which are the Vodafone–Hutchison telecom deal, the Bharti Airtel–MTN broken telecom deal, and the Vedanta–Cairn India oil deal. We highlight discussions on organizational factors, due diligence issues, deal characteristics, and country-specific determinants. Importantly, we test various theories propounded in the economics and management literature, and establish an interdisciplinary setting to both redefine the theory and reframe the propositions. The study eventually suggests that government officials' erratic nature and the ruling political party's influence were found to be severe in foreign inward deals characterized by a higher bid value, a listed target company, cash payments, and stronger government control in the industry. The findings of this research not only help researchers in strategy and international business but also managers participating in cross-border negotiations.