Cornelli, F.; Li, D.D. - Rodney L. White Center for Financial Research, Wharton … - 1998
The paper studies the role of risk arbitrage in takeover contests. We show that arbitrageurs have an incentive to accumulate non-trivial stakes in a company target of a takeover. For each arbitrageur, the knowledge of his own presence (and that he will tender a positive fraction of his shares)...