The rise in takeover premiums: An exploratory study

Cash tender, cash merger, and stock merger takeover premiums for 1974–1985 are approximately bouble those for 1963–1973. Cash tender repurchase premiums also rose in 1974. Thse upward shifts remain after we control for the business cycle and a possible time trend in premiums. The shift in both takeo...

Full description

Saved in:
Bibliographic Details
Published in:Journal of financial economics 1989-06, Vol.23 (1), p.101-119
Main Authors: Nathan, Kevin S, O'Keefe, Terrence B
Format: Article
Language:English
Subjects:
Acquisitions & mergers
Business cycles
Cash
Comparative analysis
Effects
Premiums
Securities regulations
Stock
Studies
Tender offers
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:Cash tender, cash merger, and stock merger takeover premiums for 1974–1985 are approximately bouble those for 1963–1973. Cash tender repurchase premiums also rose in 1974. Thse upward shifts remain after we control for the business cycle and a possible time trend in premiums. The shift in both takeover and repurchase premiums in 1973–1974 is consistent with some event not unique to the takeover market affecting the capital markets in 1973–1974. We also investigate the possible effect on takeover premiums of the 1986 Williams Act and conclude that it does not explain the premium increase.
ISSN:0304-405X
1879-2774
DOI:10.1016/0304-405X(89)90007-X