Bidding strategies and takeover premiums: A review

B-Tier
Journal: Journal of Corporate Finance
Year: 2009
Volume: 15
Issue: 1
Pages: 149-178

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

I review recent empirical research documenting offer premiums and bidding strategies in corporate takeovers. The discussion ranges from optimal auction bidding to the choice of deal payment form and premium effects of poison pills. The evidence describes the takeover process at a detailed level, from initial premiums to bid jumps, entry of rival bidders, and toehold strategies. Cross-sectional tests illuminate whether bidders properly adjust for winner's curse, whether target stock price runups force offer price markups, and whether auctions of bankrupt firms result in fire-sale discounts. The evidence is suggestive of rational strategic bidding behavior in specific contexts.

Technical Details

RePEc Handle
repec:eee:corfin:v:15:y:2009:i:1:p:149-178
Journal Field
Finance
Author Count
1
Added to Database
2026-01-25