Financial versus strategic bidders: Evidence from unsuccessful takeover bids

Magnus Blomkvist (1) , Timo Korkeamäki (2)

1 Audencia Business School
2 Hanken School of Economics

Even failed takeovers can identify undervalued target firms. We find that compared to financial bidders, strategic buyers have a greater lasting valuation effect on the targets. Strategic bidders thus appear to be superior in identifying undervalued targets. JEL Classification: G30, G32, G34

Keywords: Mergers and Acquisitions; Corporate Investments

Domains: Humanities and Social Sciences; Economics and Finance

Magnus Blomkvist, Timo Korkeamäki. Financial versus strategic bidders: Evidence from unsuccessful takeover bids. Economics Letters, 2017, 159, pp.142-144. ⟨10.1016/j.econlet.2017.07.034⟩. ⟨hal-01578935⟩