Brigida, Matthew; Madura, Jeff - In: Journal of Economics and Business 64 (2012) 2, pp. 185-198
The anticipation of an acquisition attracts informed trading, which can cause a high run-up in the target stock price prior to an announced acquisition bid. Because research has shown that bidders do not reduce their bid price to compensate for a relatively high run-up, a larger run-up increases...
