Takeover Bids and the Relative Prices of Shares that Differ in their Voting Rights

Kristian Rydqvist

CEPR Financial Market Papers from Centre for Economic Policy Research

Abstract: The paper models the relative prices of shares that differ only in their voting rights. The voting premium is derived as a function of the probability of takeover. We analyse how the voting premium is determined by the relative efficiency of the rival, the share structure, and by ownership concentration. The optimal share and ownership structures are derived.

Keywords: Takeovers; Voting Rights; Shares; Ownership Structure (search for similar items in EconPapers)
Date: 1992-09
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprfm:0017

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