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The Distribution of Target Ownership and the Division of Gains in Successful Takeovers
Journal article   Peer reviewed

The Distribution of Target Ownership and the Division of Gains in Successful Takeovers

René M. Stulz, Ralph A. Walkling and Moon H. Song
The Journal of finance (New York), v 45(3), pp 817-833
Jul 1990

Abstract

Data lines Databases Fractional shares Incumbents Investors Linear regression Market value Shareholders Supply curves Tender offers
This paper presents evidence that the distribution of target ownership is related to the division of the takeover gain between the target and the bidder for a sample of successful tender offers. In the whole sample, the target's gain is negatively related to bidder and institutional ownership. In the sample of multiple-bidder contests, the target's gain increases with managerial ownership and falls with institutional ownership.

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154 citations in Scopus

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