| Summary: | Thesis (MBA)--Stellenbosch University, 2003. === ENGLISH ABSTRACT: This paper examines the effect a target's operating characteristics can have
on the takeover-decision of a potential bidder. Consequently, the general socioeconomic
changes within the takeover market and their consequences for companies
acting within this hostile environment are described and the most common economic
and non-economic motives of bidders as well as several distinctive target
characteristics discussed.
In particular, this study identifies and subsequently analyses 28 variables
viewed to be potentially relevant for a bidder's takeover-decision. In order to obtain
the best possible insights into the behavior of the identified variables and their
particular influence on the likelihood of getting taken over, the specific variables are
empirically tested on an individual level through the application of different nonparametric
techniques as well as on a combined level through the performance of a
binary logistic regression analysis. The empirical examination is based on a total of
804 observations gathered by Bloomberg L.P. for the pharmaceutical and the related
health care sector and covers the period from 1996 to 2002.
The results of the different testing methods, although subject to certain
limitations, give reason to believe that there are indeed certain factors that can make
companies more interesting for potential bidders. Therefore, a regular performance of
'target-self-tests' as suggested by the author is viewed to be paramount for an early
anticipation of hostile takeover attempts and a timely establishment of adequate
measures of defense, which as a consequence could contribute considerably to a
decrease of a company's likelihood of getting taken over. === AFRIKAANSE OPSOMMING: Hierdie studie fokus op die effek wat 'n potensiele teiken se
bedryfseienskappe op die oorname besluit van die organisasie wat die oorname
oorweeg, kan hê. Gevolglik word die algemene sosio-ekonomiese veranderinge in
die oorname mark en hulle gevolge vir maatskappy wat daarbinne opereer,
bespreek. Verder word die mees algemene ekonomiese en nie-ekonomiese
beweegredes van maatskappye wat oornames oorweeg asook verskeie
onderskeidende eienskappe van teikenmaatskappye, ook bespreek.
In besonder identifiseer en analiseer hierdie studie 28 veranderlikes wat
potensieel relevant mag wees tydens 'n oorname besluit. Ten einde die bes moontlik
insig te verkry oor die gedrag van die ge-identifiseerde veranderlikes en hulle
spesifieke invloed op die waarskynlikheid van 'n oorname, word nie-parametriese
tegnieke toegepas om op individuele en saamgestelde vlak die veranderlikes
empiries te toets. Hierdie empiriese ondersoek is gebaseer op 'n totaal van 804
observasies soos versamel deur Blomberg L.P. vir die farmaseutiese en verwante
gesondheidsorgsektore en strek oor die tydperk 1996 tot 2002.
Die resultate van die onderskeie toetsmetodes - gegewe sekere beperkings -
dui daarop dat daar inderdaad sekere faktore is wat maatskappye meer aantreklike
teikens vir 'n potensiele oorname kan maak. Gevolglik beskou die navorser dit as
belangrik dat sekere 'selftoetse' gereeld gedoen behoort te word. Dit kan dien as
vroee waarskuwingsein met betrekking tot die waarskynlikheid van 'n vyandige
oorname; en kan die geteikende maatskappy help om tydige
verdedigingsmeganismes in plek te kry ten einde die waarskynlikheid van oorname
beduidend te verminder.
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