Che, Yeon-Koo; Kim, Jinwoo; Lewis, Tracy R. - In: Economics Letters 108 (2010) 1, pp. 52-54
We examine the use of breakup fees as a device for target firms to recruit white knights in response to a hostile takeover bid. When bidders have interdependent valuations of the target, the possible use of a breakup fee to subsidize entry of a subsequent bidder overdisciplines the initial...
