Betton, Sandra; Eckbo, B. Espen; Thompson, Rex; … - Institutt for foretaksøkonomi, Norges Handelshøyskole … - 2011
Merger negotiations routinely occur amidst economically significant a target stock price runups. Since the source of the runup is unobservable (is it a target stand-alone value change and/or deal anticipation?), feeding the runup back into the offer price risks "paying twice" for the target...