We examine the role of leverage in tender offers for widely held firms. Leverage allows raiders to appropriate part of the value gains arising from takeovers, hence reducing the takeover premium and mitigating the free-rider problem. Leveraged takeovers may thus be profitable even if target...

We examine the role of leverage in tender offers for widely held firms. Leverage allows raiders to appropriate part of the value gains arising from takeovers, hence reducing the takeover premium and mitigating the free-rider problem. Leveraged takeovers may thus be profitable even if target...

We examine the role of leverage in tender offers for widely held firms. Leverage allowsraiders to appropriate part of the value gains arising from takeovers, hence reducing the takeover premium and mitigating the free-rider problem. Leveraged takeovers may thus be profitable even if target...