WebThis study examines the determinants of offer premiums for a sample of fixed-price tender offers from 1970 through 1999. We investigate the extent to which the offer premiums for these tender offers are explained by both tax-related and non-tax variables. Specifically, we ask the question "What factors do managers consider in setting the offer ... WebMar 1, 2007 · For the average (median) tender offer, the tender price is 5.55% (3.24%) greater than the pre-tender market price while the percentage of bonds tendered is 82.3% (94.6%). Premiums offered by firms are greater when the firm is simultaneously soliciting consents to amend restrictive covenants and when the bond has a greater number of …
Operating Determinants of Premiums on Self-Tender Offers
WebJarrell and Bradley (1980), the average premium in cash tender offers in the U.S. increased from 32 percent to nearly 53 percent after the passage of disclsoure regulations in 1968. 1 Jarrell and Bradley attribute this premium increase to a combination of disclosure rules and the fact that the WebFeb 1, 1994 · Changes in managerial wealth resulting from a tender offer are negatively related to the likelihood of managerial resistance to a tender offer and positively related to the likelihood of tender offer success. We also document that the abnormal returns to tender offers are lower for hostile than for friendly offers if we control for the tender ... how to select image behind text word
Operating Determinants of Premiums on Self-Tender Offers
WebAn original data set of Forbes 500 targets is used. Determinants of the bid premium are found to differ between mergers and tender offers. Target liquidity, dividend payout, size, and success probability are significant determinants of premiums in tender offers while profitability and market to book value are significant for mergers. WebOur results indicate that stock price inelasticity, caused by taxes, is an important determinant of offer premiums for fixed-price self-tender offers. We also find that the … WebWe analyze a large sample of recent US corporate bond tender offers to understand what affects tender premiums as well as the percentage of bonds tendered. For the average (median) tender offer, the tender price is 4.75 (3.40) percent greater than the pre-tender market price while the percentage of bonds tendered is 82.3 (94.6) percent. Premiums … how to select image from gallery flutter