Bargaining in the shadow of takeover defenses.(Essay) From: Yale Law Journal | Date: December 1, 2003| Author: Subramanian, Guhan | COPYRIGHT 2003 Yale University, School of Law. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group.Copyright information

I. INTRODUCTION

For decades, practitioners and academic commentators who believe that target boards should have broad discretion to resist hostile takeover attempts have put forward the "bargaining power hypothesis" to support their view. (1) This hypothesis states that a target with strong takeover defenses will extract more in a negotiated acquisition than a target with weaker defenses, because the acquirer's no-deal alternative, to make a hostile bid, is less attract...