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University of Central Florida

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Full-Text Articles in Finance

Tender Offer Outcome Prediction Based Upon Efficient Market Hypothesis, James I. Montgomery Jan 1995

Tender Offer Outcome Prediction Based Upon Efficient Market Hypothesis, James I. Montgomery

Retrospective Theses and Dissertations

A significant portion of firms' capital expenditures in the recent past have been accomplished through the acquisition of the assets of other firms by tender offers. While the majority of tender offers are successful, a significant number of tender offers fail for various reasons. The accurate prediction of the success or failure of a tender offer would provide investors with valuable information upon which to base their investment decisions. The target firm shareholders could use the information as a base for their tendering decision. For the abitrageur, a predictive model would reduce the uncertainty associated with their investment activity and, …