Public versus private takeovers of Australian stock exchange listed targets

Bugeja, M; Sinelnikov, K

Public versus private takeovers of Australian stock exchange listed targets

Bugeja, M

Sinelnikov, K

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Publication Type:: Journal Article
Citation:: Australian Journal of Management, 2012, 37 (3), pp. 391 - 414
Issue Date:: 2012-12-01

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Field	Value	Language
dc.contributor.author	Bugeja, M https://orcid.org/0000-0002-1941-5092	en_US
dc.contributor.author	Sinelnikov, K	en_US
dc.date.issued	2012-12-01	en_US
dc.identifier.citation	Australian Journal of Management, 2012, 37 (3), pp. 391 - 414	en_US
dc.identifier.issn	0312-8962	en_US
dc.identifier.uri	http://hdl.handle.net/10453/23301
dc.description.abstract	In this study we investigate the association between bidding firm listing status and the abnormal returns and characteristics of target firms, in the context of Australian takeovers. Similar to the US, target abnormal returns are significantly lower in private bids. However, this difference is only significant when comparing public bidders with private non-operating bidders suggesting the results are driven by a lack of operating synergy available to non-operating bidders rather than public bidder agency problems. We also study how target firm characteristics differ between public and private bidders. The results indicate that different private bidders have alternative motivations for making an acquisition. Private equity targets have a less independent board than targets of public bidders and are more undervalued. In comparison, targets of private bidders without existing business activities are smaller, have higher management ownership, lower growth and lower cash flows than targets of public bidders. © The Author(s) 2012.	en_US
dc.relation.ispartof	Australian Journal of Management	en_US
dc.relation.isbasedon	10.1177/0312896212440270	en_US
dc.title	Public versus private takeovers of Australian stock exchange listed targets	en_US
dc.type	Journal Article
utslib.citation.volume	3	en_US
utslib.citation.volume	37	en_US
utslib.for	150103 Financial Accounting	en_US
utslib.for	15 Commerce, Management, Tourism and Services	en_US
pubs.embargo.period	Not known	en_US
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Business
pubs.organisational-group	/University of Technology Sydney/Faculty of Business/Accounting Discipline
utslib.copyright.status	closed_access
pubs.issue	3	en_US
pubs.publication-status	Published	en_US
pubs.volume	37	en_US

Abstract:

In this study we investigate the association between bidding firm listing status and the abnormal returns and characteristics of target firms, in the context of Australian takeovers. Similar to the US, target abnormal returns are significantly lower in private bids. However, this difference is only significant when comparing public bidders with private non-operating bidders suggesting the results are driven by a lack of operating synergy available to non-operating bidders rather than public bidder agency problems. We also study how target firm characteristics differ between public and private bidders. The results indicate that different private bidders have alternative motivations for making an acquisition. Private equity targets have a less independent board than targets of public bidders and are more undervalued. In comparison, targets of private bidders without existing business activities are smaller, have higher management ownership, lower growth and lower cash flows than targets of public bidders. © The Author(s) 2012.

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http://hdl.handle.net/10453/23301