Synergistic gains from corporate acquisitions and their division between the stockholders of target and acquiring firms

@article{Bradley1988SynergisticGF,
  title={Synergistic gains from corporate acquisitions and their division between the stockholders of target and acquiring firms},
  author={Michael Bradley and Anand Desai and E. H. Kim},
  journal={Journal of Financial Economics},
  year={1988},
  volume={21},
  pages={3-40}
}
  • Michael Bradley, Anand Desai, E. H. Kim
  • Published 1988
  • Business
  • Journal of Financial Economics
  • This paper documents that a successful tender offer increases the combined value of the target and acquiring firms by an average of 7.4%. We also provide a theoretical analysis of the process of competition for control of the target and empirical evidence that competition among bidding firms increases the returns to targets and decreases the returns to acquirers, that the supply of target shares is positively sloped, and that changes in the legal/institutional environment of tender offers have… CONTINUE READING
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