Competition and dynamics of takeover contests

Riccardo Calcagno and Sonia Falconieri

Journal of Corporate Finance, 2014, vol. 26, issue C, 36-56

Abstract: This paper investigates the effect of potential competition on takeovers which we model as a bargaining game with alternating offers where calling an auction represents an outside option for each bidder at each stage of the game. The model describes a takeover process that is initiated by an unsolicited bidder, and it aims to answer three main questions: who wins the takeover and how? when? and how much is the takeover premium?

Keywords: Takeover negotiations; Auctions; Bargaining; Outside option (search for similar items in EconPapers)
JEL-codes: C78 G34 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:corfin:v:26:y:2014:i:c:p:36-56

DOI: 10.1016/j.jcorpfin.2014.02.003

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