Strategic Issues in Cash Tender Offers Predicting Bid Premiums, Probability Of Success, and Target Management's Response

10 Pages Posted: 23 Sep 2008 Last revised: 30 Jul 2011

See all articles by Michael S. Long

Michael S. Long

Rutgers University at Newark

Ralph A. Walkling

Drexel University - Lebow College of Business

Date Written: July 28, 2011

Abstract

In spite of the increased level of merger and takeover activity, and the intense interest of researchers in the subject, many important questions about tender offers remain unanswered. For example, what determines the size of bid premiums? Can we predict whether or not a tender offer will be successful? What, if anything, differentiates offers which are resisted by target management from those which are accepted? The purpose of this article is to summarize recent work (by one or both of the authors) that attempts to answer these questions by looking at a sample of 158 cash tender offers over the period 1972-1977.

Suggested Citation

Long, Michael S. and Walkling, Ralph August, Strategic Issues in Cash Tender Offers Predicting Bid Premiums, Probability Of Success, and Target Management's Response (July 28, 2011). Midland Corporate Finance Journal, pp. 57-65, 1986 . Available at SSRN: https://ssrn.com/abstract=918054

Michael S. Long

Rutgers University at Newark ( email )

111 Washington Avenue
Newark, NJ 07102
United States
973-353-5471 (Phone)

Ralph August Walkling (Contact Author)

Drexel University - Lebow College of Business ( email )

LeBow College of Business
Philadelphia, PA 19104
United States
(215) 895-4920 (Phone)
(215) 895-6119 (Fax)

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