Two-step acquisitions and liquidity spread

Mufaddal Baxamusa () and Dobrina Georgieva ()

Journal of Economics and Finance, 2015, vol. 39, issue 2, 262-287

Abstract: We hypothesize that macro-level liquidity affects the choice between tender-mergers and mergers. We employ a novel methodology to test this relationship. This method finds structural breaks in the number of tender-mergers relative to mergers and finds that the structural breaks coincide strikingly well with major changes in macro-level liquidity. Consistent with our hypotheses our regression analysis finds that the number of tender offers increases with liquidity and also that the acquirer’s share of synergy increases as tender-mergers increase. Copyright Springer Science+Business Media New York 2015

Keywords: Tender-merger; Mergers and acquisitions; Liquidity; Bargaining power; Synergy; G34; G18 (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:spr:jecfin:v:39:y:2015:i:2:p:262-287

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DOI: 10.1007/s12197-012-9247-6

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