We consider a setting in which two potential merger partners each possess private information pertaining both to the … profitability of the merged entity and to stand-alone profits, and we investigate the extent to which this private information makes … ex-post regret an unavoidable phenomenon in merger negotiations. To this end, we consider ex-post incentive compatible …

In this paper we compare the profitability of a merger to the profitability of a partial ownership arrangement and find …