An Optimal Timing of Merger and Acquisition for bidders under Brownian Motion with Poisson Jumps

This paper studies on optimal timing of merger and acquisition (OTMA) for bidders under Brownian motion with Poisson jumps. Looking the stock price ratio n between targets and bidders as a Brownian motion with Poisson jumps process, it solves the problem of bidders' OTMA from the situation that jump-range is satisfied with general conception. It applies the method of optimal stopping to get the satisfying conditions for bidders' OTMA in general jump-range. And finally by method of numerical analysis in uniform distribution it draws some practical and valuable conclusions which can provide theoretical guidance on optimal timing choice for bidders of merger and acquisition in financial storm.