Zain Naboulsi

Does a Toehold Make a Bidder Bolder? Preemption and Multiplicity in Multi-Round Takeover Auctions

A bidder can quietly buy a stake in a company before making an offer for it. That stake, a toehold, is supposed to pay for itself twice: it makes the bidder willing to bid harder, and it frightens rivals into staying out of the fight. The first effect is arithmetic. The second is what would justify the cost and exposur...