The economic effect of acquisitions through tender offers.

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The purpose of this study is to investigate the market reaction to acquisitions through tender offers. In this study we define tender offer as wholly owned tender offer when the bidder acquires all of the issued shares of the target and the other as non-wholly owned tender offer. We find different market reaction between the two tender offers. Especially, our evidence showed that the bidder and the target company’s weighted average abnormal return is positive and statistically significant when the bidder acquires all of the issued shares of the target firm.