Shareholder Welfare and Substantial Share Acquisitions Outside of the Williams Act
33 Pages Posted: 21 Sep 2014
Date Written: 1988
We argue that non-professional shareholders are not generally harmed by open market or negotiated purchases during or shortly after the termination of a tender offer. With widespread availability of fair price amendments, share control statutes, poison pill amendments, and fair value appraisals, market sweeps should not result in unequal treatment of shareholder groups or in diminished takeover premiums, and arbitragers should not systematically receive disproportionately favorable treatment relative to other shareholders, due to the competition.
Keywords: antitakeover amendments, tender offers, market efficiency
JEL Classification: G10, G14, G18
Suggested Citation: Suggested Citation