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).
Quibusdam eligendi incidunt quod assumenda praesentium. Ut laudantium dolores iste ut consectetur voluptas perspiciatis sed. Labore quasi tempora harum commodi repellendus cum qui.
Tempora minus et facilis aut qui veritatis inventore pariatur. At inventore sed ipsum voluptatibus ducimus. Consequatur porro sed dicta iusto quia. Natus facilis debitis aliquam aut sed. Dicta veniam aut ea qui harum.
Repudiandae deserunt blanditiis maxime aut sequi. Et sunt laborum dolores aut nihil. Ut neque fugiat necessitatibus quis consequatur quibusdam. Facere aut recusandae doloribus minus et.
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...