Corporate Mergers Through Tender Offers: Measurement and Public Policy Considerations

This report provides a perspective on the role of tender offers in corporate mergers and acquisitions and on the nature of financing used to carry them out. Analyzing SEC data on corporate takeovers, it classifies by industry those firms for which tender offers were made in 1979 and 1980 and examines the sources of funds used in these acquisition bids. Comparing SEC data with information compiled by FTC and others, it assesses the importance of tender offers in overall merger and acquisition activity. The report focuses mainly on domestic mergers, but foreign takeovers of U.S. companies also are discussed.