This paper empirically investigates the causes and immediate consequences of hostile takeovers in the U.S. over the 1990-1995 period. We find no indications of poor target performance over the five years prior to the takeover announcement. However, there is strong evidence that hostile takeovers...

This paper investigates the optimal bidding strategy for the initial bidder in takeover contests. In the theoretical model, the initial bidder has the choice between making a low or a high preemtive initial bid. Both types of bids can lead to a competitive auction process among bidders, and both...

The optimal bidding strategy for the initial bidder in takeover contests is investigated. IN the model, the initial bidder has the choice between making a low or a high preemptive initial bid. Both type of bid can lead to a competitive auction process among bidders, and both information and...

The preemptive role of the mean of payment in a takeover contest is analysed following the bidder's point of view.