Largely constant average acquirer returns over the past four decades mask fundamental changes in the takeover market …

acquirer firm to learn the merger synergies with the target firm in advance. The realization of a synergy is uncertain ex ante … minority shareholdings can reduce this downside risk as they allow for a sequential takeover where the acquirer takes an … initial minority share, becomes an insider, and learns the merger synergy. We show how this feature of PPOs affects a firm …