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Takeover Likelihood Models for UK Quoted Companies

  • Robin Nuttall
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    This paper estimates takeover likelihood models for UK quoted companies. For a sample of 643 UK nonfinancial quoted companies over the period 1989-96, we find that the probability of being a takeover target is increasing in leverage and incidence of takeover speculation and decreasing in pre-bid performance, size and age since listing. Friendly and hostile targets differ in terms of age, size and capital structure, but not pre-bid performance. Lapsed and successful takeover targets differ in terms of size and age. Overall, the evidence here is consistent with a disciplinary view of hostile takeovers, while for friendly takeovers it is consistent with financial distress, financial synergy, going-public-to-sell-out manageralist motivations.

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    File URL: http://www.nuff.ox.ac.uk/economics/papers/1999/w6/paper3.pdf
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    Paper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number 1999-W06.

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    Date of creation: 01 Jan 1999
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    Handle: RePEc:oxf:wpaper:1999-w06
    Contact details of provider: Postal: Manor Rd. Building, Oxford, OX1 3UQ
    Web page: http://www.economics.ox.ac.uk/Email:


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