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| Author: | Markides, C. |
| Title: | How much-hated takeover defenses can unlock hidden value |
| Journal: | Multinational Business
1992 : SUMMER, p. 21-28 |
| Index terms: | MERGERS DEFENCE SHAREHOLDERS |
| Language: | eng |
| Abstract: | A contest for control is like a negotiation game: One ought never to accept the first offer. This means that is always in the interests of the targets shareholders for managers to resist the initial takeover offer on their behalf. Resistance would probably give time for other bidders to enter the bidding and thus drive the offer price up, or it would encourage the initial bidder to improve his offer and so avoid bloody war. In fact empirical evidence supports these claims. Not only should we not prohibit takeover defenses, but we should encourage them! |
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