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Does a CEO's experience with mergers matter when her firm becomes a takeover target? We find that shareholders receive higher premiums when their CEO has experience. The evidence suggests this is due to learning rather than innate skills or selection. Consistent with superior negotiation of...
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camps: 1) those focusing on positive ‘spillover’ effects; 2) those focusing on negative ‘bargaining’ effects. Motivated in … more dominant under low unionization rates, while ‘bargaining’ effects tend to be more dominant under high unionization … rates; furthermore, ‘spillover’ effects tend to be more dominant with inward cross-border mergers, while ‘bargaining …
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Intuition suggests that an auction maximizes revenue for the seller; yet empirically, many companies sell their businesses in a negotiation with one buyer. I argue that, when potential buyers are market competitors, an auction may generate lower revenue for the seller. First, in an auction,...
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The mandatory bid rule has its origins in the UK and now applies throughout the EU and in many other jurisdictions. Under a mandatory bid, an acquirer of a controlling stake in a listed company has to offer to the remaining shareholders a buy‐out of their minority stakes at a price equal to...
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Despite the recent increase in Cross-Border Merger and Acquisition (CBMA) activity, research has repeatedly determined that over 70 percent of CBMAs fail to deliver the promised results, with evidence pointing to ineffective negotiation process management as one of the crucial factors explaining...
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target company's shareholders. Examples of bargaining power differentials are provided by looking at Oracle's 2004 …
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This chapter considers how corporate governance concerns are reflected in the approach to regulating friendly takeover transactions in two countries with similar capital markets and institutional frameworks, the United States (U.S.) and the United Kingdom (U.K.). With respect to friendly...
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