Publications [#266985] of Tracy R. Lewis

Journal Articles

1. Che, YK; Kim, J; Lewis, TR, Do breakup fees lead to efficient takeover?, Economics Letters, vol. 108 no. 1 (July, 2010), pp. 52-54, Elsevier BV, ISSN 0165-1765 [doi]
   (last updated on 2023/11/06)

   Abstract:
   We examine the use of breakup fees as a device for target firms to recruit white knights in response to a hostile takeover bid. When bidders have interdependent valuations of the target, the possible use of a breakup fee to subsidize entry of a subsequent bidder overdisciplines the initial bidder's preemption and results in excessive entry by a second bidder. © 2010 Elsevier B.V.