Initial Public Offering or Initial Private Placement?
Working paper
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http://hdl.handle.net/11250/95406Utgivelsesdato
2011Metadata
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Sammendrag
This paper studies the choice between an auction and a negotiation when selling a large fraction of a company. Using detailed data on ownership structure in
123 public offerings and 88 negotiated private placements, we show that negotiated private placements are much more common when there are significant private
benefits of control. This finding supports the idea that a negotiated transaction
allow the seller to extract more of the gains from trade when the gains from trade
include private benefits.