Corporate finance - Financial Management Collection

Financial Management (Financial Management Association), Fall, 1993 by Melissa Lunt, Ted Veit

In summary, the results show no evidence of overpayment in fixed-price offers compared to Dutch auctions. Differences in premiums observed in past studies are explained by the influence of firm size and the proportion of shares sought. Firm size has an especially strong influence on premiums for both fixed-price and Dutch auction offers.

Further, no significant difference in the returns or abnormal returns on the day following the expiration of the offer exists between the two types of offers.

COPYRIGHT 1993 Financial Management Association
COPYRIGHT 2004 Gale Group

 

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