Open AccessCompleting The Deal: Determinants of Successful Tender Offers
Author(s) -
David J. Flanagan,
James P. D’Mello,
K. C. O’Shaughnessy
Publication year - 2011
Publication title -
journal of applied business research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.149
H-Index - 22
eISSN - 2157-8834
pISSN - 0892-7626
DOI - 10.19030/jabr.v14i3.5700
Subject(s) - tender offer , business , stock (firearms) , legal tender , set (abstract data type) , economics , actuarial science , marketing , finance , monetary economics , computer science , currency , engineering , programming language , mechanical engineering , corporate governance , shareholder
This study of 991 tender offers that occurred between 1985 and 1994 tests how a set of factors influenced the probability that tender offers will be successfully completed. The probability of tender offer success is increased by relatedness of the two firms, cross-border status, the existence of termination fees and pre-bid ownership of target stock. Two-tier transactions, hostile reactions, and competing bids negatively effect tender offer success. Implications for managers contemplating tender offers are discussed.