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How Do Acquirers Choose between Mergers and Tender Offers?
2012
Social Science Research Network
We present a theoretical framework and supporting empirical evidence for the choice of acquisition method in takeovers. In our model, bidders have a preference for speedy execution in order to minimize competition for the target. Due to existing regulations, tender offers provide substantially lower completion times than mergers and, as a result, are the acquisition method of choice. However, a tender offer signals to the target good market opportunities for its shares which raises its
doi:10.2139/ssrn.2138476
fatcat:sqxvcaygmffz5bq5de673xzjci