Journal of Economics and Finance

, Volume 39, Issue 2, pp 262–287

Two-step acquisitions and liquidity spread


DOI: 10.1007/s12197-012-9247-6

Cite this article as:
Baxamusa, M. & Georgieva, D. J Econ Finan (2015) 39: 262. doi:10.1007/s12197-012-9247-6


We hypothesize that macro-level liquidity affects the choice between tender-mergers and mergers. We employ a novel methodology to test this relationship. This method finds structural breaks in the number of tender-mergers relative to mergers and finds that the structural breaks coincide strikingly well with major changes in macro-level liquidity. Consistent with our hypotheses our regression analysis finds that the number of tender offers increases with liquidity and also that the acquirer’s share of synergy increases as tender-mergers increase.


Tender-merger Mergers and acquisitions Liquidity Bargaining power Synergy 

JEL Classification

G34 G18 

Copyright information

© Springer Science+Business Media New York 2013

Authors and Affiliations

  1. 1.Opus College of BusinessUniversity of St Thomas, MinnesotaSt PaulUSA

Personalised recommendations