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Pre-Bid Acquisitions and Substantial Shareholder Notices
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Steven R. Bishop
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Abstract
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Share price changes of approximately 10-13% are found at the time of the announcement of substantial shareholdings. These price adjustments are interpreted as being consistent with the market reassessing the probability of an impending takeover offer rather than a reassessment of the underlying value of the target firm. Overall, there was little price response for acquiring firms although "raider" firms appeared to be positively revalued.
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Keywords
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SUBSTANTIAL SHAREHOLDINGS; TAKEOVERS.
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Contact Details
Steven R. Bishop
Marakon Associates
Level 11
90 Collins Street
Melbourne VIC 3000
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Financial assistance for this study was provided by a research grant from the University of New South Wales. Special thanks for assistance to Peter Dodd as well as Goh Su Fong, Phil Dolan, Terry Walter, Martin Waterworth and to participants at the Workshop Series at the AGSM.
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