Completing The Deal: Determinants of Successful Tender Offers

Abstract

This study of 991 tender offers that occurred between 1985 and 1994 tests how a set of factors influenced the probability that tender offers will be successfully completed. The probability of tender offer success is increased by relatedness of the two firms, cross-border status, the existence of termination fees and pre-bid ownership of target stock. Two-tier transactions, hostile reactions, and competing bids negatively effect tender offer success. Implications for managers contemplating tender offers are discussed.