Takeovers of diffusely held firms: A nonstandard approach

摘要: A common theme in the literature on corporate control is that, when share ownership diffuse, free-rider problem prevents raiders from making acquisitions at tender prices below postacquisition price. In this paper, we address question by formulating a nonstandard model of takeovers diffusely held firms. It demonstrated even individual shareholdings are infinitesimal relative to firm size, succeed with positive probability and equilibria exist which raider earns substantial per profits. Further, Nash game characterized regard profit, aggregate fraction shares tendered, relation between profit degree randomization exhibited shareholder tendering strategies.