In the 1960s and early 1970s many conglomerate companies were treated as the glamour shares of the stock market and they traded at high price-earnings ratios. One reason for this glamour status was the belief that these conglomerates had dynamic, entrepreneurial management and when this was injected into taken-over firms greatly increased efficiency and profits would ensue, which would ultimately be reflected in a superior share price performance. The current note examines this hypothesis by presenting the results of a research study into the actual stock market performance of conglomerate firms in the United Kingdom. Following Professors Weston, Smith and Shrieves (this REVIEW, 1972) the study uses a capital asset pricing model approach in measuring performance . Contrary to Weston et al. 's findings the current study found that conglomerates did not display superior risk-adjusted stock market performance. The findings are consistent, however, with other studies in the United States (Melicher and Rush, 1973; Brenner and Downes, 1979), as well as with previous studies into takeovers in Britain (Firth, 1976 and 1979) which showed no stock market gains resulting from making acquisitions.