dc.contributor.author | Tarsalewska, M | |
dc.date.accessioned | 2018-01-26T11:10:05Z | |
dc.date.issued | 2018-01-31 | |
dc.description.abstract | This paper analyses the effects of preemption fears on the buyout efficiency when firms
combine non-synergistic operational activities and have asymmetric access to financing.
Bidders with preemption fears are more likely to acquire target firms at an earlier
development stage. However, if uncertainty is high, an acquirer may opt to wait and
buy the target firm at a later stage as assets in place. The fear of preemption affects the
efficient exercise of each offer differently. While the timing of a hostile takeover under
threat of preemption converges to an efficient global optimiser threshold, negotiated
mergers are exercised inefficiently too early. Premiums to the target firm are higher
when the firm is acquired at an earlier stage, and when the bidder fears being preempted. | en_GB |
dc.description.sponsorship | This project received cofunding
from the European Unions Horizon 2020 research and innovation programme under the Marie
Skodowska-Curie grant agreement No 665778 and National Science Center, Poland under the grant agreement
2016/23/P/HS4/04032 POLONEZ. | en_GB |
dc.identifier.citation | Vol. 89 (2018), pp. 39-58. | en_GB |
dc.identifier.doi | 10.1016/j.jbankfin.2018.01.012 | |
dc.identifier.uri | http://hdl.handle.net/10871/31194 | |
dc.language.iso | en | en_GB |
dc.publisher | Elsevier | en_GB |
dc.rights.embargoreason | Under embargo until 31 July 2019 in compliance with publisher policy. | en_GB |
dc.rights | © 2018 Elsevier B.V. All rights reserved. | |
dc.subject | Buyouts | en_GB |
dc.subject | Real Options | en_GB |
dc.subject | Fear of Preemption | en_GB |
dc.title | Buyouts under the threat of preemption | en_GB |
dc.type | Article | en_GB |
dc.identifier.issn | 0378-4266 | |
dc.description | This is the author accepted manuscript. The final version is available from Elsevier via the DOI in this record. | en_GB |
dc.identifier.journal | Journal of Banking and Finance | en_GB |