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Acquisitions of private targets: the unique shareholder wealth implications

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  • Ninon Kohers

Abstract

Acquisitions of privately-held targets provide unique shareholder wealth implications which prior studies have not addressed. This study provides a comparative analysis of private versus public target takeovers, including differences in merger motivations, method of payment inferences, shareholder wealth effects, and the factors driving these wealth changes. The results show that acquirer wealth gains in private target takeovers exceed those in public target takeovers, with large private targets being the key contributors to wealth gains. Acquirer gains do not appear to come at the expense of private target gains. These findings highlight the importance of target ownership in influencing the shareholder wealth changes in takeovers.

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  • Ninon Kohers, 2004. "Acquisitions of private targets: the unique shareholder wealth implications," Applied Financial Economics, Taylor & Francis Journals, vol. 14(16), pages 1151-1165.
    • Handle: RePEc:taf:apfiec:v:14:y:2004:i:16:p:1151-1165
    DOI: 10.1080/09603100412331297676
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    References listed on IDEAS

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