Optimal Sequential Selling Mechanism and Deal Protections in Mergers and Acquisitions

被引：2

作者：

Chen, Yi ^{[1
]}

Wang, Zhe ^{[2
,3
]}

机构：

[1] Cornell Univ, Ithaca, NY USA

[2] Penn State Univ, University Pk, PA USA

[3] Penn State Univ, Smeal Coll Business, 343 Business Bldg, University Pk, PA 16802 USA

来源：

JOURNAL OF FINANCE | 2023年 / 78卷 / 04期

关键词：

INFORMATION ACQUISITION; AUCTIONS; LOCKUPS; STRATEGIES; PROVISIONS;

D O I：

10.1111/jofi.13235

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

We study the dynamic profit-maximizing selling mechanism in a merger and acquisitions (M&A) environment with costly bidder entry and without entry fees. Depending on the parameters, the optimal mechanism is implemented by a standard auction or by a two-stage procedure with exclusive offers to one bidder followed by an auction potentially favoring that bidder. The optimal mechanism may involve common deal protections like termination fees, asset lockups, or stock option lockups. Our proposed procedures resemble sales of targets filing Chapter 11 bankruptcy or M&A involving public targets, and they shed light on how to use deal protections in practice.

引用

页码：2139 / 2188

页数：50

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