A test of bear market mergerstat control premiums

摘要

This paper examines all 340 of the 2001 "bear market" acquisition announcements of U.S. target firms reported by Mergerstat/Shannon Pratt's Control Premium Study™. This paper compares the "Control Premium" reported by Mergerstat/ Shannon Pratt's Control Premium Study™ to a comparable "Cumulative Abnormal Return"(CAR) calculated using event study methodology. While the average total "Control Premium" reported by Mergerstat differed by only -3.45% from the event study CAR, significant differences presented themselves when the event period was broken down between the day -63 to -1 "runup" period and the day 0 to end "markup" period.