Thursday, January 26, 2012
Takeover premiums of target and acquiring companies are a common and widely followed mergers and acquisitions metric. But these target and acquirer companies do not exist in a vacuum — they have competitors. And often, there are implications on the stocks and bonds of those competing companies during a takeover. A new study finds that the impact of corporate takeover announcements on competitor company stock and bondholders tends to be small, and either positive or neutral. View PDF