source of uncertainty by focusing on valuations in takeover bids. We show that the expected returns by analysts are … significantly related to the takeover premiums paid. A 5 percent higher target price is associated with a 1 percent higher takeover … bid. The economic significance increases when we control takeover premiums for estimated synergy gains. Our results …

analysis of takeover rumors of publicly traded US companies from 1990 to 2008 shows that these two types of rumors can be … statistically distinguished by returns of rumored takeover targets before rumor publication. However, market responses to the rumors …, takeover premiums of sampled targets cannot be explained by markup pricing hypothesis although the hypothesis is supported by …

This paper documents that a part of takeover synergy is incorporated in the target and acquirer stock prices prior to … the event window of previous studies, around the takeover anticipation date. This result suggests that those studies might … in this paper sheds light on the magnitude of acquisition returns, and so on some well-documented takeover results …