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Reason for negative synergistic gains

State the reason for negative synergistic gains for British acquisitions of the U.S. firms?

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Negative synergies for British acquisitions of the U.S. firms can reflect that the British managers would have been motivated in order to invest in the U.S. firms to pursue their own interests, like building the corporate empire, rather than shareholders’ interests. Negative synergy is viewed as the agency costs.

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