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Why bidders like creeping takeovers
Author(s) -
Croft Elizabeth,
Donker Han
Publication year - 2005
Publication title -
journal of corporate accounting and finance
Language(s) - English
Resource type - Journals
eISSN - 1097-0053
pISSN - 1044-8136
DOI - 10.1002/jcaf.20182
Subject(s) - shareholder , business , habit , economics , industrial organization , finance , corporate governance , psychology , psychotherapist
In the United States, a firm's ability to use creeping takeover strategies is constrained by disclo‐sure requirements. But elsewhere, the restrictions are less stringent. The authors reveal the average takeover premiums paid to target shareholders under different takeover strategies. They also investigate what makes firms overbid—and how creeping takeover strategies can help curb that expensive habit. © 2006 Wiley Periodicals, Inc.