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Tender offers to influential shareholders

Journal of Banking & Finance 1997 21(4), 529-540
In this paper I analyze a tender offer to shareholders who can influence the outcome of the offer, and I show that several results from atomistic shareholder models no longer hold when shareholders are influential. I find closed-form solutions for the probability that a shareholder tenders in the presence of a foothold position or dilution, and I examine the relation between a conditional and an unconditional offer.