The Pricing Effects of Interfirm Cash Tender Offers Journal Article

Overview

abstract

• ABSTRACTThe tools provided by option‐pricing theory are used to examine the wealth effects of interfirm cash tender offers. The analysis provides evidence consistent with the “synergy” theory of corporate takeovers and has implications concerning the economic effects of regulations of cash tender offers. The analysis further suggests that the market prices information uncertainty in a manner not captured by the standard Capital Asset Pricing Model. The study introduces a technique for unbundling the prices of a primary asset and a contingent claim when only the prices of the combination are observed.

CU Boulder Authors

• Bhagat, Sanjai

publication date

• September 1, 1987

has restriction

• closed

Date in CU Experts

• June 12, 2014 12:27 PM

Full Author List

• BHAGAT S; BRICKLEY JA; LOEWENSTEIN URI

author count

• 3

published in

• The Journal of Finance  Journal

Other Profiles

International Standard Serial Number (ISSN)

• 0022-1082

Electronic International Standard Serial Number (EISSN)

• 1540-6261

Digital Object Identifier (DOI)

• https://doi.org/10.1111/j.1540-6261.1987.tb03922.x

Additional Document Info

start page

• 965

end page

• 986

volume

• 42

issue

• 4