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The Characteristics of Takeover Targets: The Spanish Experience 1991–1997

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  • Nuria Alcalde

    ()

  • Manuel Espitia

Abstract

In this paper we analyse the characteristicspresented by Spanish firms that have been thesubject of takeover bids that allow them to bedifferentiated from other firms. To that end,we use a sample made-up of 69 non-financialfirms that were the subject of takeover bids inSpain during the period 1991–1997, togetherwith a further 69, selected randomly on anindustrial and time basis, that were not. Theresults show that the firms that were subjectto a takeover bid were not, in general,characterised by having lower profitability ora worse market valuation than other firmsoperating in the same sector. This resultmakes it difficult to argue that takeovers inSpain have in their majority been driven bydisciplinary or speculative motives. Bycontrast, certain variables that exert aninfluence over the cost of the transaction,such as the size and the ownership structure ofthe firm, do appear to play a relevant role inthe selection of the target on the part of thebidding firm. Copyright Kluwer Academic Publishers 2003

Suggested Citation

  • Nuria Alcalde & Manuel Espitia, 2003. "The Characteristics of Takeover Targets: The Spanish Experience 1991–1997," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 7(1), pages 1-26, March.
  • Handle: RePEc:kap:jmgtgv:v:7:y:2003:i:1:p:1-26
    DOI: 10.1023/A:1022416521512
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    References listed on IDEAS

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    1. Ronan G. Powell, 1997. "Modelling Takeover Likelihood," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 24(7&8), pages 1009-1030.
    2. Levine, Paul & Aaronovitch, Sam, 1981. "The Financial Characteristics of Firms and Theories of Merger Activity," Journal of Industrial Economics, Wiley Blackwell, vol. 30(2), pages 149-172, December.
    3. Tobin, James, 1969. "A General Equilibrium Approach to Monetary Theory," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 1(1), pages 15-29, February.
    4. Eckbo, B. Espen & Langohr, Herwig, 1989. "Information disclosure, method of payment, and takeover premiums : Public and private tender offers in France," Journal of Financial Economics, Elsevier, vol. 24(2), pages 363-403.
    5. Barnes, Paul, 1999. "Predicting UK Takeover Targets: Some Methodological Issues and an Empirical Study," Review of Quantitative Finance and Accounting, Springer, vol. 12(3), pages 283-301, May.
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    Cited by:

    1. Athanasios Tsagkanos & Antonios Georgopoulos & Costas Siriopoulos & Evangelos Koumanakos, 2008. "Identification of Greek Takeover Targets and Coherent Policy Implications," Review of Development Economics, Wiley Blackwell, vol. 12(1), pages 180-192, February.
    2. repec:eco:journ1:2017-03-10 is not listed on IDEAS

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