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Financial versus strategic bidders: Evidence from unsuccessful takeover bids

Author

Listed:
  • Magnus Blomkvist

    () (Audencia Business School)

  • Timo Korkeamäki

    () (Hanken School of Economics - Hanken School of Economics)

Abstract

Even failed takeovers can identify undervalued target firms. We find that compared to financial bidders, strategic buyers have a greater lasting valuation effect on the targets. Strategic bidders thus appear to be superior in identifying undervalued targets. JEL Classification: G30, G32, G34

Suggested Citation

  • Magnus Blomkvist & Timo Korkeamäki, 2017. "Financial versus strategic bidders: Evidence from unsuccessful takeover bids," Post-Print hal-01578935, HAL.
  • Handle: RePEc:hal:journl:hal-01578935
    DOI: 10.1016/j.econlet.2017.07.034
    Note: View the original document on HAL open archive server: http://hal-audencia.archives-ouvertes.fr/hal-01578935
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    File URL: http://hal-audencia.archives-ouvertes.fr/hal-01578935/document
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    References listed on IDEAS

    as
    1. Bradley, Michael & Desai, Anand & Kim, E. Han, 1983. "The rationale behind interfirm tender offers : Information or synergy?," Journal of Financial Economics, Elsevier, vol. 11(1-4), pages 183-206, April.
    2. Rhodes-Kropf, Matthew & Robinson, David T. & Viswanathan, S., 2005. "Valuation waves and merger activity: The empirical evidence," Journal of Financial Economics, Elsevier, vol. 77(3), pages 561-603, September.
    3. Malmendier, Ulrike & Opp, Marcus M. & Saidi, Farzad, 2016. "Target revaluation after failed takeover attempts: Cash versus stock," Journal of Financial Economics, Elsevier, vol. 119(1), pages 92-106.
    4. Alexander S. Gorbenko & Andrey Malenko, 2014. "Strategic and Financial Bidders in Takeover Auctions," Journal of Finance, American Finance Association, vol. 69(6), pages 2513-2555, December.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Mergers and Acquisitions; Corporate Investments;

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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