Shareholder Wealth Effects of European Domestic and Cross-border Takeover Bids

@inproceedings{Goergen2003ShareholderWE,
  title={Shareholder Wealth Effects of European Domestic and Cross-border Takeover Bids},
  author={Marc Goergen and Luc Renneboog},
  year={2003}
}
In this paper, we analyse the short-term wealth effects of large (intra)European takeover bids. We find large announcement effects of 9% for target firms and a cumulative abnormal return that includes the price run-up over the two-month period prior to the announcement date of 23%. However, the share price of the bidding firms reacts positively with a statistically significant announcement effect of only 0.7%. We also show that the status of a takeover bid has a large impact on the short-term… CONTINUE READING