Freeze-Out Mergers

• 成果类型: Article
• 署名作者: Dalkir, Elif; Dalkir, Mehmet; Levit, Doron
• 署名单位: University of New Brunswick
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhy102
• 发表日期: 2019
• 页码: 3266
• 关键词: TENDER OFFERS; INFORMATION; EFFICIENCY; takeovers

摘要

Do freeze-out mergers mitigate the free-rider problem of corporate takeovers? We study this question in a tender offer model with finitely many shareholders. Under a freeze-out merger, minority shareholders expect to receive the original offer price whether or not they tender their shares. We show that the ability to freeze out shareholders increases the raider's expected profit. However, as the number of shareholders gets arbitrarily large, the raider's expected profit in equilibrium converges to zero for any freeze-out clause with an ownership threshold that is strictly above simple majority. In this sense, freeze-out mergers do not solve the free-rider problem.