search query: @indexterm Privatization / total: 703
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| Author: | Wright, M. Weir, C. Burrows, A. |
| Title: | Irrevocable commitments, going private and private equity |
| Journal: | European Financial Management
2007 : SEP, VOL. 13:4, p. 757-775 |
| Index terms: | commitment equity capital privatization |
| Language: | eng |
| Abstract: | The article adds to increasing interest in public to private buy-outs and mechanisms to ensure bid success. A unique dataset of 155 public to private buy-outs are used to provide one of the first examinations of the determinants of irrevocable commitments. Irrevocable commitments involve undertakings given by existing shareholders to agree to sell their shares to the bidder before the bid to take the company private is announced. It is found that, for management buy-outs, the level of irrevocable commitments is increased by the bid premium, the reputation of the private equity backer and board shareholdings. The level of irrevocable commitments is reduced by rumours of a takeover bid and bid value. |
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