Synergistic Gains from Corporate Acquisitions and Their Division Between the Stockholders of Target and Acquiring Firms Export

@article{citeulike:3326849, abstract = {A study examines the concept that a successful tender offer will increase the combined value of the target and acquiring firms by an average 7.4\%. The empirical data come from 236 successful tender offers from 1963 to 1984. The analysis shows that a successful tender offer must be front-end loaded and that 2-tier, front-end loaded tender offers are not coercive and will not impede optimal allocation of target resources. Even though there are 3 parameters in any tender offer, it is only on the front-end offer price that rival bidding firms compete. The analysis further indicates that the firm that makes the highest-valued reallocation of target resources can always fashion the highest-valued winning bid. Moreover, target managers can always fashion an intrafirm tender offer that will defeat a value-decreasing interfirm tender offer, meaning that the management team that can make the highest-valued allocation of the target resources will acquire or maintain control of the target.}, author = {Bradley and Michael and Desai and Anand and Kim and Han}, citeulike-article-id = {3326849}, journal = {Journal of Financial Economics}, keywords = {acquisitions, analysis, company, corporate, gains, mergers, offers, raiders, returns, statistical, stockholders, studies, target, tender}, month = {May}, number = {1}, pages = {3--41}, posted-at = {2008-09-24 02:31:55}, priority = {2}, title = {Synergistic Gains from Corporate Acquisitions and Their Division Between the Stockholders of Target and Acquiring Firms}, volume = {21}, year = {1988} }

TY - JOUR ID - citeulike:3326849 L3 - citeulike-article-id:3326849 N2 - A study examines the concept that a successful tender offer will increase the combined value of the target and acquiring firms by an average 7.4%. The empirical data come from 236 successful tender offers from 1963 to 1984. The analysis shows that a successful tender offer must be front-end loaded and that 2-tier, front-end loaded tender offers are not coercive and will not impede optimal allocation of target resources. Even though there are 3 parameters in any tender offer, it is only on the front-end offer price that rival bidding firms compete. The analysis further indicates that the firm that makes the highest-valued reallocation of target resources can always fashion the highest-valued winning bid. Moreover, target managers can always fashion an intrafirm tender offer that will defeat a value-decreasing interfirm tender offer, meaning that the management team that can make the highest-valued allocation of the target resources will acquire or maintain control of the target. IS - 1 JF - Journal of Financial Economics EP - 41 TI - Synergistic Gains from Corporate Acquisitions and Their Division Between the Stockholders of Target and Acquiring Firms VL - 21 SP - 3 KW - acquisitions KW - analysis KW - company KW - corporate KW - gains KW - mergers KW - offers KW - raiders KW - returns KW - statistical KW - stockholders KW - studies KW - target KW - tender AU - Bradley AU - Michael AU - Desai AU - Anand AU - Kim AU - Han PY - 1988/05// ER -