Incentives for Partial Acquisitions and Real Market Concentration
Marie-Cecile Fagart and
Saïd Souam ()
Journal of Institutional and Theoretical Economics (JITE), 2009, vol. 165, issue 3, 508-534
We analyze the incentives for a controlling shareholder to acquire silent or controlling shares in a competitor. When it occurs, the acquisition is detrimental to minority shareholders of his firm, or to the target, or even to both. The ownership structure of firms turns out to be a key variable. The possession of initial silent toeholds in rivals unambiguously encourages further partial acquisitions, both controlling and silent. However, a higher initial controlling share generally stimulates controlling acquisitions, but always discourages silent ones. Finally, indirect acquisitions through the controlled firm are always controlling and preferred when the targeted block is small.
JEL-codes: D23 D43 G32 G34 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed
Downloads: (external link)
https://www.mohrsiebeck.com/en/article/incentives- ... 28093245609789471952 (text/html)
Fulltext access is included for subscribers to the printed version.
Working Paper: Incentives for Partial Acquisitions and Real Market Concentration (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:mhr:jinste:urn:sici:0932-4569(200909)165:3_508:ifpaar_2.0.tx_2-x
Ordering information: This journal article can be ordered from
Mohr Siebeck GmbH & Co. KG, P.O.Box 2040, 72010 Tübingen, Germany
Access Statistics for this article
Journal of Institutional and Theoretical Economics (JITE) is currently edited by Gerd Mühlheußer and Bayer, Ralph-C
More articles in Journal of Institutional and Theoretical Economics (JITE) from Mohr Siebeck, Tübingen
Bibliographic data for series maintained by Thomas Wolpert ().