Handbook of Empirical Corporate Finance

Chapter 15 CORPORATE TAKEOVERS^*

SANDRA. BETTON

John Molson School of Business, Concordia University

B. ESPEN. ECKBO

Tuck School of Business, Dartmouth College

KARIN S. THORBURN

Tuck School of Business, Dartmouth College

Contents

Abstract

Keywords

1. Introduction

2. Takeover activity

2.1. Merger waves

2.2. Takeover contests, 1980–2005

2.2.1. Initial bidders and offer characteristics

2.2.2. Duration, time to second bid, and success rates

2.3. Merger negotiation v. public tender offer

2.3.1. Merger agreement and deal protection devices

2.3.2. Mandatory disclosure and tender offer premiums

2.3.3. Determinants of the merger choice

3. Bidding strategies

3.1. Modeling the takeover process

3.1.1. Free riders and post-offer dilution

3.1.2. ...