The Determinants of Synergy Disclosure by French Target Companies in Takeover Bids

45 Pages Posted: 19 Dec 2012

See all articles by Isabelle Martinez

Isabelle Martinez

University of Toulouse - Paul Sabatier; LGC

Emmanuelle Nègre

University of Toulouse 1 - Ecole Doctorale Sciences de Gestion

Date Written: December 18, 2012

Abstract

We examine the determinants of voluntary synergy disclosure by target companies during takeover bids. The sample contains 124 French takeover bids between 1999 and 2011. The variables assumed to influence the targets’ synergy disclosure are the characteristics of the bid and the characteristics of both the target and the bidding companies. Disclosure is significantly more likely in the case of equity payment. Moreover, there is some evidence that i) CEO non-duality and the size of the target company; ii) the nationality of the bidder influence disclosure. Finally, the European Directive on Takeovers encourages targets to disclose synergy forecasts.

Keywords: synergy disclosure, target companies, takeover bids, determinants

JEL Classification: G34, M41

Suggested Citation

Martinez, Isabelle and Nègre, Emmanuelle, The Determinants of Synergy Disclosure by French Target Companies in Takeover Bids (December 18, 2012). Available at SSRN: https://ssrn.com/abstract=2190987 or http://dx.doi.org/10.2139/ssrn.2190987

Isabelle Martinez (Contact Author)

University of Toulouse - Paul Sabatier; LGC ( email )

118 Route de Narbonne
Toulouse cedex 9, F-31062
France

Emmanuelle Nègre

University of Toulouse 1 - Ecole Doctorale Sciences de Gestion ( email )

2 rue du Doyen Gabriel Marty
Toulouse, 31042
France

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