The Distribution of Target Ownership and the Division of Gains in Successful Takeovers
18 Pages Posted: 23 Sep 2008 Last revised: 30 Jul 2011
Date Written: 1990
This paper presents evidence that the distribution of target ownership is related to the division of the takeover gain between the target and the bidder for a sample of successful tender offers. In the whole sample, the target's gain is negatively related to bidder and institutional ownership. In the sample of multiple-bidder contests, the target's gain increases with managerial ownership and falls with institutional ownership.
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