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).
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