Takeover bids, unconditional offer price and investor protection
de La Bruslerie, Hubert; Deffains-Crapsky, Catherine (2005), Takeover bids, unconditional offer price and investor protection, Review of Financial Economics, 14, 2, p. 103-126. http://dx.doi.org/10.1016/j.rfe.2004.07.001
Type
Article accepté pour publication ou publiéDate
2005Nom de la revue
Review of Financial EconomicsVolume
14Numéro
2Éditeur
Elsevier
Pages
103-126
Identifiant publication
Métadonnées
Afficher la notice complèteRésumé (EN)
In this paper, we develop a contingent claim analysis on shareholders' right to sell unconditionally their shares at the acquisition bid price during a takeover bid procedure. Compared with a situation without any guarantee, this regulation brings about wealth transfer towards outside shareholders. Why, in an apparently irrational way, do outside shareholders, who may benefit from a price guarantee, not systematically sell their shares? That question emphasizes the outside shareholders' behavior. Using a real option valuation model to evaluate the price guarantee opportunity, we show that an equal treatment rule between controlling and outside shareholders may lead outside shareholders to sell their shares.Mots-clés
STOCKHOLDERS; BID price; STOCKS (Finance) -- Prices; CONSOLIDATION & merger of corporations; CAPITALISTS & financiers; DEBT-to-equity ratioPublications associées
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