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Financial versus strategic bidders: evidence from unsuccessful takeover bids. (English) Zbl 1398.91648

Summary: Even failed takeovers can identify undervalued target firms. We find that compared to financial bidders, strategic buyers have a greater lasting valuation effect on the targets. Strategic bidders thus appear to be superior in identifying undervalued targets.

MSC:

91G50 Corporate finance (dividends, real options, etc.)
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