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Determinants of tender offer premiums

WebDec 7, 2003 · For the average (median) tender offer, the tender price is 4.75 (3.40) percent greater than the pre-tender market price while the percentage of bonds tendered is 82.3 (94.6) percent. Premiums offered by firms are greater when the firm is simultaneously soliciting consents to amend restrictive covenants and when the bond has a greater … WebThis study examines the determinants of offer premiums for a sample of fixed-price tender offers from 1970 through 1999. We investigate the extent to which the offer premiums for these tender offers are explained by both tax-related and non-tax variables. Specifically, we ask the question "What factors do managers consider in setting the offer ...

Determinants of Tender Offer Premiums - SSRN

WebAn original data set of Forbes 500 targets is used. Determinants of the bid premium are found to differ between mergers and tender offers. Target liquidity, dividend payout, size, and success probability are significant determinants of premiums in tender offers while profitability and market to book value are significant for mergers. WebFeb 1, 1994 · Changes in managerial wealth resulting from a tender offer are negatively related to the likelihood of managerial resistance to a tender offer and positively related to the likelihood of tender offer success. We also document that the abnormal returns to tender offers are lower for hostile than for friendly offers if we control for the tender ... geotech what is it https://redfadu.com

Determinants of bond tender premiums and the percentage tendered

http://flora.insead.edu/fichiersti_wp/Inseadwp1988/88-24.pdf WebRepurchase and Tender Offer Premiums James W. Wansley, William R. Lane, and Salil Sarkar ... C. Determinants of Tender Offer Premiums Several factors may affect the size of the tender offer premium. These factors may be expressed as: (i) The dividend substitution hypothesis. The pre- WebMar 1, 2007 · Our multivariate analysis of tender offers focuses on the determinants of the tender premium and the percentage of bonds tendered. In Table 5, we examine the … christian thomson marwick marketing

Determinants of bond tender premiums and the percentage tendered

Category:Determinants of Premiums on Self-Tender Offers - Semantic …

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Determinants of tender offer premiums

The Determinants of Tendering Rates in Interfirm and Self …

WebJul 29, 2011 · The percentage of shares already controlled by the offering company, its ability to acquire enough shares to be able to implement potentially beneficial changes, … Websample of cash tender offers made over the time period 1972-7 premiums over market value averaged 52% and ranged between 2% and 157%. What accounts for this phenomenon? Why are acquiring firms willing and why are theyforced to offer such large premiums? We address these questions by undertaking a two-stage analysis. In stage …

Determinants of tender offer premiums

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WebMar 1, 2007 · For the average (median) tender offer, the tender price is 5.55% (3.24%) greater than the pre-tender market price while the percentage of bonds tendered is 82.3% (94.6%). Premiums offered by firms are greater when the firm is simultaneously soliciting consents to amend restrictive covenants and when the bond has a greater number of … WebJan 1, 1985 · Premiums in offers where the bidder seeks majority control are 9 percentage points higher than when the bidder does not seek …

WebWe investigate why firms pay a premium when making a tender offer to repurchase shares, and if the size of the premium is related to the elasticity of the supply curve for the firm's stock. We find that premiums on self-tender offers are related to characteristics of tendering firms, and to variables that are proxies both for the capital gains and for the … Webundervaluation than a Dutch offer because the average premium paid is more significant in a fixed price tender offer. Also, in this case, the insiders set the terms of the trade Tender offer ... tender offer repurchase as a payout method Varma et al. (2016). ... determinant of the payout policy. Firms characterized by low heterogeneity or lower ...

WebApr 1, 1997 · The analyses of the tender offer premiums and of the means of payment should not be performed separately. In the empirical literature, these two variables are often considered independently, although they may have an endogenous relationship in a contractual setting. ... We analyze the major determinants of M&A terms when the offer …

WebMar 1, 2007 · There are four primary factors that we expect will directly affect tender offer premiums. 5 These factors include: (1) stated motivation of the firm; (2) market …

WebExamples of Tender Premium in a sentence. Includes the Early Tender Premium, but excludes accrued and unpaid interest, which also will be paid to, but excluding, the … christian thought for the day funnyWebDeterminants of Tender Offer Premiums The bid premium acquiring companies offer for target company shares may be expected to be a positive function of potential acquisition-related benefits and a negative function of the bargaining power of the bidder. A bid … christian thorpeWebJarrell and Bradley (1980), the average premium in cash tender offers in the U.S. increased from 32 percent to nearly 53 percent after the passage of disclsoure regulations in 1968. 1 Jarrell and Bradley attribute this premium increase to a combination of disclosure rules and the fact that the geo-teck heating \u0026 cooling limitedWebsample of cash tender offers made over the time period 1972-7 premiums over market value averaged 52% and ranged between 2% and 157%. What accounts for this … geoteck servicesWebDeterminants of Tender Offer Premiums. Article. Full-text available. Jan 1985; FAJ; Robert O. Edmister; Ralph A. Walkling; The bid premium acquiring companies offer for target company shares may ... christian thought provokersWebA tender offer is typically an active and widespread solicitation by a company or third party (often called the “bidder” or “offeror”) to purchase a substantial percentage of the … christian thought for the monthWebtender offers than in self-tender offers even after attempting to control for the factors found to affect tendering (e.g., premium to tender) and the different incentives of atomistic shareholders to tender in the two transactions. A possible … geotec low