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Pre-Bid Acquisitions and Substantial Shareholder Notices

Author

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  • Steven R. Bishop

    (Marakon Associates, Level 11, 90 Collins Street, Melbourne VIC 3000.)

Abstract

Share price changes of approximately 10–13% are found at the time of the announcement of substantial shareholdings. These price adjustments are interpreted as being consistent with the market reassessing the probability of an impending takeover offer rather than a reassessment of the underlying value of the target firm. Overall, there was little price response for acquiring firms although “raider†firms appeared to be positively revalued.

Suggested Citation

  • Steven R. Bishop, 1991. "Pre-Bid Acquisitions and Substantial Shareholder Notices," Australian Journal of Management, Australian School of Business, vol. 16(1), pages 1-33, June.
    • Handle: RePEc:sae:ausman:v:16:y:1991:i:1:p:1-33
    DOI: 10.1177/031289629101600101
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    References listed on IDEAS

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    Cited by:

    1. Hutson, Elaine, 2000. "Takeover targets and the probability of bid success: Evidence from the Australian market," International Review of Financial Analysis, Elsevier, vol. 9(1), pages 45-65, February.

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    Keywords

    SUBSTANTIAL SHAREHOLDINGS; TAKEOVERS;

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