English, Article, Journal or magazine article edition: Real market concentration through partial acquisitions Charléty-Lepers, Patricia; Fagart, Marie-Cécile; Souam, Saïd

User activity

Share to:
 
Bookmark: http://trove.nla.gov.au/version/170022
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Real market concentration through partial acquisitions
Author
  • Charléty-Lepers, Patricia
  • Fagart, Marie-Cécile
  • Souam, Saïd
Physical Description
  • preprint
Notes
  • We study horizontal partial acquisitions in an oligopolistic industry in the absence of synergies. Contrary to existing results, we find that a dominant shareholder may choose to acquire shares in a competitor although the aggregate profit of the group of firms under his control, and even the greater group of firms in which he has a stake, is reduced. This is due to a “favorite” effect: after the acquisition, the dominant shareholder will favor the firm in which he eventually holds the relatively higher share to the detriment of shareholders of the other firms. For this reason, a block of shares can be bought at a discount when the value of the firm of the initiator decreases post acquisition. Moreover, we show that the existence of initial silent toeholds in rivals enhances the incentive for a dominant shareholder to buy shares in other firms in the industry, whereas controlling ones may discourage them.
  • Horizontal partial acquisitions; Real market concentration; Dominant shareholder; Minority shareholders; Silent interests
  • RePEc:ebg:essewp:dr-04004
Language
  • English
Contributed by
OAIster

Get this edition

Other links

  • Set up My libraries

    How do I set up "My libraries"?

    In order to set up a list of libraries that you have access to, you must first login or sign up. Then set up a personal list of libraries from your profile page by clicking on your user name at the top right of any screen.

  • All (1)
  • Unknown (1)
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.

User activity


e.g. test cricket, Perth (WA), "Parkes, Henry"

Separate different tags with a comma. To include a comma in your tag, surround the tag with double quotes.

Be the first to add a tag for this edition

Be the first to add this to a list

Comments and reviews

What are comments? Add a comment

No user comments or reviews for this version

Add a comment