Tender Offers and Leverage

Mining Edgar Tender Offers

This paper describes how use the HTMLEditorKit to perform web data mining on EDGAR (Electronic Data-Gathering, Analysis, and Retrieval system). EDGAR is the SEC’s (U.S. Securities and Exchange Commission) means of automating the collection, validation, indexing, acceptance, and forwarding of submissions. Some entities are regulated by the SEC (e.g. publicly traded firms) and are required, by la...

Tender Offers versus Block Trades: Empirical Evidence

In this paper we test whether the determinant of a block trade and tender offer probabilities differ and whether the relative magnitude of the security and private benefits can explain the choice of transfer mode. We investigate the Swedish market for corporate control and use the wedge between cash flow rights and voting rights as a proxy for the incentives to extract private benefits. Our res...

Stampeding Shareholders and Other Myths: TargetShareholders and Hostile Tender Offers

Do Firms Undertake Self-Tender Offers to Optimize Capital Structure?*

Companies occasionally announce that they undertake self-tender offers to optimize their capital structure. For example, in January 1997, James M. Usdan, president and chief executive officer of RehabCare Group, stated that “the use of cash and borrowing to fund the tender offer will result in a more efficient capital structure for the company” (Business Wire, January 31, 1997). Further, the an...

Tender Mercy

If you are an Englishman you will begin by being irritated by Mr. Kaufman?I almost wrote " by having Mr. Kaufman irritate you "?such is the obtrusiveness of the American idiom when the title page has given you no inkling Mr. Kaufman is not London based. But this mere pettifog that carps. The main irritation is the slow build-up of the tale. Mr. Kaufman is in no mood to jag his backcloth with ey...