Corporate Takeover Targets Acquisition Probability [Hardcover]

The term “takeover”, of which the first form is mergers and acquisitions (M&A), refers to the transfer of control of a business from one group of shareholders to another. Considering the importance of this issue and the real drives behind takeovers, it has become imperative to identifying companies that are vulnerable to takeover by two types: tender offer and exchange offer.

This book thus presents the legal aspects, the theoretical justifications and the empirical contributions of takeovers, and analyzes the economic and financial characteristics of targets in order to assess the probability of being acquired. An empirical approach based on two quantitative studies is then applied to the European market, which is still virgin territory in terms of academic research. Finally, acquisition probability models have been developed and they have a 72% forecast accuracy average rate of targets.

Corporate Takeover Targets is aimed at students and researchers in economic and management, as well as M&A consultants.

Introduction  ix

Part 1. Corporate Takeovers: Theoretical Justifications and Empirical Contributions  1

Introduction to Part 1  3

Chapter 1. Economic and Legal Framework of Takeover Bids in Europe 5

1.1. Corporate takeover: general description  6

1.1.1. The control 6

1.1.2. The takeover concept 8

1.1.3. Techniques and classification of M&A  9

1.1.4. Conclusion 14

1.2. The economic impact of takeover bids 15

1.2.1. Global development over the period 1990-2000 16

1.2.2. Characteristics of the recent M&A wave: 2001–2007 26

1.3. Regulatiol“ž