Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments October 18, 2020 erstellt
Description:
We examine the role of financial bidders versus strategic bidders in target revaluations after failed bids. We document larger revaluations for targets of financial bidders than for those of strategic bidders when target firms are small. Failing to find evidence that the differential revaluation is due to differential sorting into deal failure, future takeover activity or anticipated operational changes, we trace it back to financial bidders revealing target underpricing prior to the bid. However, for larger target firms, the two bidder types do not seem to play any differential role in revealing underpricing. This suggests that financial bidders seize profit opportunities by bidding on underpriced targets, when target firms are small, and that, to a larger extent than strategic bidders