Research seminar by Andrey Malenko (Stanford University): «Strategic and Financial Bidders in Takeover Auctions»
Wednesday, March 23 Laboratory of Macroeconomic Analysis and International College of Economics and Finance held joint Research seminar.
Venue: Pokrovski Bulvar, 11, Room Zh-419
Speaker: Andrey Malenko (Stanford University)
Theme:«Strategic and Financial Bidders in Takeover Auctions» (joint with Alexander S. Gorbenko)
Abstract: We propose a structural model of takeover auctions that allows for asymmetries between strategic and financial bidders. Using hand-collected data on the number of bidders, their types and bids, we estimate the model to recover valuations of participating bidders. We find that strategic and financial bidders differ along multiple dimensions: they value targets with different observable characteristics; valuations of financial bidders are affected more by aggregate economic conditions; strategic bidders are more heterogeneous than financial bidders both within and across auctions; strategic bidders typically value targets more, but some mature underperforming targets are valued more by financial bidders. (pdf version)