Determinants of tender offer premiums
WebMar 30, 2024 · Determinants of tender offer premiums. Financial Analysts Journal, 41, 54 – 68. Rhoades, S. A. (1987). Determinants of Premiums Paid in Bank Acquisitions”, Atlantic Economic Journal, March, pp. 20-30. Rose, P.S. (1991). Bidding theory and bank merger premiums: The impact of structural and regulatory factors. Review of Business … WebApr 1, 1997 · The analyses of the tender offer premiums and of the means of payment should not be performed separately. In the empirical literature, these two variables are often considered independently, although they may have an endogenous relationship in a contractual setting. ... We analyze the major determinants of M&A terms when the offer …
Determinants of tender offer premiums
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http://flora.insead.edu/fichiersti_wp/Inseadwp1988/88-24.pdf Websample of cash tender offers made over the time period 1972-7 premiums over market value averaged 52% and ranged between 2% and 157%. What accounts for this …
WebWe investigate why firms pay a premium when making a tender offer to repurchase shares, and if the size of the premium is related to the elasticity of the supply curve for the firm’s stock. We find that premiums on self-tender offers are related to characteristics of tendering firms, and to variables that are proxies both for the capital gains and for the … WebMar 1, 2007 · Potential determinants of tender premium and percentage tendered2.1. Tender premium. There are four primary factors that we expect will directly affect tender offer premiums. 5 These factors include: (1) stated motivation of the firm; (2) market conditions and taxes; (3) information asymmetry; and (4) ability to pay for a successful …
WebDeterminants of Tender Offer Premiums The bid premium acquiring companies offer for target company shares may be expected to be a positive function of potential acquisition-related benefits and a negative function of the bargaining power of the bidder. A bid … WebThis study examines the determinants of offer premiums for a sample of fixed-price tender offers from 1970 through 1999. We investigate the extent to which the offer premiums for these tender offers are explained by both tax-related and non-tax variables. Specifically, we ask the question "What factors do managers consider in setting the offer ...
WebJan 6, 2005 · Our results indicate that stock price inelasticity, caused by taxes, is an important determinant of offer premiums for fixed-price self-tender offers. We also find that the information conveyed by the offer, measured by the post-expiration appreciation of the firm's stock, is contained in the tender offer premium, and that offer premiums are ...
WebFeb 1, 1994 · Changes in managerial wealth resulting from a tender offer are negatively related to the likelihood of managerial resistance to a tender offer and positively related to the likelihood of tender offer success. We also document that the abnormal returns to tender offers are lower for hostile than for friendly offers if we control for the tender ... rayonnant solius horizontal 1000w blancWebMar 1, 2007 · There are four primary factors that we expect will directly affect tender offer premiums. 5 These factors include: (1) stated motivation of the firm; (2) market … rayonne suncatcherWebDeterminants of Tender Offer Premiums. Article. Full-text available. Jan 1985; FAJ; Robert O. Edmister; Ralph A. Walkling; The bid premium acquiring companies offer for target company shares may ... rayonnel formationWebMar 1, 2007 · For the average (median) tender offer, the tender price is 5.55% (3.24%) greater than the pre-tender market price while the percentage of bonds tendered is 82.3% (94.6%). Premiums offered by firms are greater when the firm is simultaneously soliciting consents to amend restrictive covenants and when the bond has a greater number of … rayonnant the cathedral series great coursesWebDeterminants of Bond Tender Premiums and the Percentage Tendered Abstract: We analyze a large sample of recent US corporate bond tender offers to understand what … simply ai writingWebFeb 1, 2009 · Table 4 shows cross-sectional determinants of the offer premiums using the offer premium data in Betton, Eckbo, and Thorburn (2008b). The explanatory variables are grouped into “Target characteristics”, “Bidder characteristics”, and “Deal characteristics”. ... They find that the average cash tender offer premium increased from 32% ... simply aishaWebDec 7, 2003 · For the average (median) tender offer, the tender price is 4.75 (3.40) percent greater than the pre-tender market price while the percentage of bonds tendered is 82.3 (94.6) percent. Premiums offered by firms are greater when the firm is simultaneously soliciting consents to amend restrictive covenants and when the bond has a greater … rayon nature decathlon