This study analyzed the consequences of cross-border acquisitions on the cumulative daily abnormal returns of target firms and their rivals from 1997-2009 using Acquisition Probability Hypothesis. Accordingly, rival firms of initial acquisition targets received abnormal returns because of the increased likelihood that they will be targets themselves. The descriptive research design was used with a sampling frame that includes all announced and completed acquisitions coursed through the Philippine stock exchange. The statistical tool used is the Event study methodology and significance was set at 5% significance level, two-tailed. The results showed that for cross-border deals that involves a Philippine company being acquired by a foreign firm, on the average, the target companies receive significant positive abnormal returns surrounding the acquisition proposal period. We determined that there is an abnormal positive price effect associated with the actual announcement proposal to the target companies being acquired by the foreign company. On the other hand, the corresponding rival companies of the sample target firms obtained do not earn any significant abnormal returns, whether positive or negative, surrounding the actual acquisition announcement period. The returns received by the rival companies surrounding the actual acquisition proposal period ([-20, 20], [-10, 10], [-5, 5], [-2, 2], and [-1, 1] event windows) are not significant on the 5% level of significance. For the deals where the acquisition become completed, both the target and their industry rivals earned insignificant abnormal returns surrounding the acquisition completed period across all event windows ([-20, 20], [-10, 10], [-5, 5], [-2, 2], and [-1, 1]). The results mean that the completion announcement event does not provide any significant stock price returns beyond expectations.