PRE-TENDER OFFER SHARE ACQUISITION STRATEGY IN TAKEOVERS

Authors
CHOWDHRY B JEGADEESH N
Citation
B. Chowdhry et N. Jegadeesh, PRE-TENDER OFFER SHARE ACQUISITION STRATEGY IN TAKEOVERS, Journal of financial and quantitative analysis, 29(1), 1994, pp. 117-129
Citations number
19
Categorie Soggetti
Economics,"Business Finance
Journal title
Journal of financial and quantitative analysis → ACNP
ISSN journal
00221090
Volume
29
Issue
1
Year of publication
1994
Pages
117 - 129
Database
ISI
SICI code
0022-1090(1994)29:1<117:POSASI>2.0.ZU;2-A
Abstract
This paper models the strategic pre-tender offer share acquisition pro blem faced by potential bidders in takeovers. The model provides a rat ional explanation for the seemingly anomalous empirical evidence that the information about the impending tender offers is not fully conveye d through the potential bidders' pre-tender offer trades and for the e vidence that a large fraction of bidders do not hold any target shares prior to launching the tender offers. Additional testable implication s are also provided.