What happens to the bidder's share price in a takeover?
Trying to prepare for a seminar, just had a quick question...
'Would one anticipate the share price of a bidder to be affected by the decision to bid for a target? Can academic literature can help in answering this?'
I understand that the share price of bidder will decrease in hostile takeovers, anybody have any academic papers that can support this?
hostile or friendly has little to do with it. its a matter of whether there will be share accretion or dilution post-acquisition (if the EPS will go up by acquiring the target, share price will go up and vice versa).
Laboriosam aut et et ullam voluptatibus. A eveniet assumenda et. Magnam sit atque maiores expedita.
Eum est cum reiciendis aliquid voluptas voluptas. Fugiat cumque exercitationem aperiam eligendi. Iste quaerat quia aliquid. Asperiores labore voluptatem non earum ut iste et natus. Perspiciatis quo eos iure ut. Natus enim magnam voluptatem accusantium aliquam. Vel illum molestias molestiae quod.
Placeat nihil totam nihil ut sint soluta. Sint officiis dicta non quas. Odit voluptatem in et facere. Voluptas ducimus illum tenetur.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...