Burkart, Mike (2009): Analyse de l'impact des coûts de participation sur la stratégie des enchérisseurs dans les Prises de contrôle.
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We consider a takeover in which risk neutral bidders must incur participation costs and study their optimal strategy. We found that bidders decision of participation is endogenous. There is a threshold of private participation cost above that a potential bidder will stay out of takeover process. Moreover, when he decides to participate in takeover, his optimal strategy is the submission of his own valuation for the target firm. However, a bidder without initial shareholdings and with low valuation can be completely deterred by the bidder with initial shareholdings. Indeed, a who gets toeholds in the target firm, overbids when he participates in takeover. This can led to an inefficient allocation.
|Item Type:||MPRA Paper|
|Original Title:||Analyse de l'impact des coûts de participation sur la stratégie des enchérisseurs dans les Prises de contrôle|
|English Title:||Participation costs and optimal strategy in takeovers|
|Keywords:||Partipation costs - Initial shareholdings - Private valuation - Overbidding - Takeovers|
|Subjects:||D - Microeconomics > D4 - Market Structure and Pricing > D44 - Auctions
G - Financial Economics > G3 - Corporate Finance and Governance > G34 - Mergers; Acquisitions; Restructuring; Corporate Governance
D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D82 - Asymmetric and Private Information; Mechanism Design
|Depositing User:||Didier HOUNWANOU|
|Date Deposited:||18. Apr 2011 13:22|
|Last Modified:||12. Feb 2013 18:57|
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