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cost of other contractual concessions or inefficiencies in takeover negotiations. Overall, M&A experience is valuable when …Does a CEO's experience with mergers matter when her firm becomes a takeover target? We find that shareholders receive … selection. Consistent with superior negotiation of salient features of takeover offers, experienced target CEOs obtain either …
Persistent link: https://www.econbiz.de/10012967497
Material-Adverse-Change clauses (MACs) are present in virtually every acquisition agreement. These clauses are the outcome of extensive negotiation and exhibit substantial cross-sectional variation in the number and types of events that are excluded from being ‘material adverse events' (MAEs)....
Persistent link: https://www.econbiz.de/10013116114
Old National Bancorp was the first publicly traded bank to buy back its Capital Purchase Program (CPP) warrants. It paid $1.2 million, which is below the low-end of this paper's estimates of the fair market value of the warrants. This paper estimates the warrants are worth between $1.9 and $6.9...
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This paper analyzes the process of private negotiations between financial institutions and companies. It relies on a … 1996. The analysis suggests that private negotiations are extremely important in our understanding of corporate governance …
Persistent link: https://www.econbiz.de/10014222272
We examine the contracting and negotiation process in mergers using an incomplete contracts framework. Our multi-period model allows for the arrival of new information and renegotiation after the signing of an initial merger agreement but before deal completion or termination. A properly...
Persistent link: https://www.econbiz.de/10013074269
In a dynamic model of merger negotiation with two-sided private information two-sided endogenous initiation, this paper investigates (1) what determines the timing of M&A initiation, and (2) who initiates the M&A negotiation; (3) why bid premia are different between target-initiated deals and...
Persistent link: https://www.econbiz.de/10013015154
I explore the incidence, amounts, disclosure and potential sources of bargain purchase gains reported by an Australian sample of firms during 2013-15. I find that 7.58% of the acquirers reported bargain purchase gains during this period. The median gain as a percentage of consideration...
Persistent link: https://www.econbiz.de/10012911786