. Academic evidence suggests that the main beneficiaries of a takeover are the shareholders of the...

. Academic evidence suggests that the main beneficiaries of a takeover are the shareholders of the target firm (i.e. the one that is being taken over). Explain why this might happen

Expert Solution

Shareholders are mainly interested in wealth creation. they invest their money for increse in value of their investment. so while company goes into takeovers, directors and management are concerned about control and management while shareholders are concerned about their profit.

Takeover is when acuiring companymaks a bid for getting control of target company. So, when a company with good records or background is takenover there may be intense competition in between buyers which increases its bidding price and as after paying off debt and other liabilities amount is dstributed to target companes shareholders thet directy get benefitted.

when management initiates takover procedures approval from shareholders is required for various formalities. so if shareholders dont have any benefit in the deal of takeover they will not approve them so while takeover process is goinon proper care is taken for shareholders interest, even government also imposs restrictions in the deals for shareholders protection by varios egulations. So beause of all these reason mostly takeovers are done considering shareholders interest so they get benefitted.

jeff jeffy answered 2 years ago

. Academic evidence suggests that the main beneficiaries of a takeover are the shareholders of the...

. Academic evidence suggests that the main beneficiaries of a takeover are the shareholders of the target firm (i.e. the one that is being taken over). Explain why this might happen

Is there any survey evidence that suggests that there is an agency conflict between shareholders and...

Is there any survey evidence that suggests that there is an agency conflict between shareholders and managers when it comes to dividends? Can the answers be interpreted differently?

In a hostile takeover, _________________. A) the acquirer often approaches the target’s management and shareholders directly...

In a hostile takeover, _________________. A) the acquirer often approaches the target’s management and shareholders directly with a tender offer for the purchase of their shares B) the acquirer often approaches the target’s management directly with a tender offer for the purchase of their shares C) the acquirer often bypasses the target’s management and approaches the target company’s shareholders directly with a tender offer for the purchase of their shares D) none of the above The pound is pegged to...

The evidence from takeover announcements supports the semi-strong form of market efficiency, while the evidence from...

The evidence from takeover announcements supports the semi-strong form of market efficiency, while the evidence from earnings announcements supports just the weak form of market efficiency. (True or false)?

Provide an example of a company where the anti-takeover defence would benefit management but not shareholders....

Provide an example of a company where the anti-takeover defence would benefit management but not shareholders. Explain the mechanism or type of contract that shareholders can put in place to avoid this situation.

What evidence suggests that the biochemistry of life elsewhere would resemble that on Earth?

What are the main benefits assumed to flow from a merger and consolidation or takeover? Why...

What are the main benefits assumed to flow from a merger and consolidation or takeover? Why do so many mergers and takeovers fail to deliver improved financial performance? Mergers and takeovers in economics.

Takeover is a general and imprecise term referring to the transfer of control of a firm from one group of shareholders to another.

Takeover is a general and imprecise term referring to the transfer of control of a firm from one group of shareholders to another. This can occur through any one of three means: acquisitions, proxy contests, and going-private transactions. Discuss THREE (3) basic legal procedures that one firm can use to acquire another firm.One important reason for an acquisition is that the combined firm may generate greater revenues than two separate firms. Increase in revenue may come from marketing gains, strategic...

While the evidence suggests that over long periods of time that stocks will outperform bonds, individuals...

While the evidence suggests that over long periods of time that stocks will outperform bonds, individuals with a long-term investment horizon may still choose to invest in bonds. Is this rational behavior? Why or why not? Give real world example

While the evidence suggests that over long periods of time that stocks will outperform bonds, individuals...

While the evidence suggests that over long periods of time that stocks will outperform bonds, individuals with a long-term investment horizon may still choose to invest in bonds. Is this rational behavior? Why or why not?

Question

. Academic evidence suggests that the main beneficiaries of a takeover are the shareholders of the...

Solutions

Expert Solution

Related Solutions

. Academic evidence suggests that the main beneficiaries of a takeover are the shareholders of the...

Is there any survey evidence that suggests that there is an agency conflict between shareholders and...

In a hostile takeover, _________________. A) the acquirer often approaches the target’s management and shareholders directly...

The evidence from takeover announcements supports the semi-strong form of market efficiency, while the evidence from...

Provide an example of a company where the anti-takeover defence would benefit management but not shareholders....

What evidence suggests that the biochemistry of life elsewhere would resemble that on Earth?

What are the main benefits assumed to flow from a merger and consolidation or takeover? Why...

Takeover is a general and imprecise term referring to the transfer of control of a firm from one group of shareholders to another.

While the evidence suggests that over long periods of time that stocks will outperform bonds, individuals...

While the evidence suggests that over long periods of time that stocks will outperform bonds, individuals...