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On the optimality of partial tender offers

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  • Dalkır, Elif
  • Dalkır, Mehmet

Abstract

This paper analyzes the optimality of partial tender offers in acquisition of firms. We show that partial offers have no impact on the acquirer's expected profit under complete information.

Suggested Citation

  • Dalkır, Elif & Dalkır, Mehmet, 2014. "On the optimality of partial tender offers," Journal of Economic Theory, Elsevier, vol. 151(C), pages 561-570.
    • Handle: RePEc:eee:jetheo:v:151:y:2014:i:c:p:561-570
    DOI: 10.1016/j.jet.2013.12.010
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    References listed on IDEAS

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    3. Francesca Cornelli & David D. Li, 2002. "Risk Arbitrage in Takeovers," The Review of Financial Studies, Society for Financial Studies, vol. 15(3), pages 837-868.
    4. Robert Marquez & Bilge Yılmaz, 2008. "Information and Efficiency in Tender Offers," Econometrica, Econometric Society, vol. 76(5), pages 1075-1101, September.
    5. Francesca Cornelli & David D. Li, 1997. "Large Shareholders, Private Benefits of Control, and Optimal Schemes of Privatization," RAND Journal of Economics, The RAND Corporation, vol. 28(4), pages 585-604, Winter.
    6. Sanford J. Grossman & Oliver D. Hart, 1980. "Takeover Bids, the Free-Rider Problem, and the Theory of the Corporation," Bell Journal of Economics, The RAND Corporation, vol. 11(1), pages 42-64, Spring.
    7. Mike Burkart & Denis Gromb & Fausto Panunzi, 1998. "Why Higher Takeover Premia Protect Minority Shareholders," Journal of Political Economy, University of Chicago Press, vol. 106(1), pages 172-204, February.
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    More about this item

    Keywords

    Partial tender offers;

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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