Tender Offers and Management Resistance

One purpose of this paper is to present an explanation of these findings based on a theory in which target management may use its private information about the “true” value of the target in a strategy to resist tender offers._x000B__x000B_A second purpose of the paper is to provide a characterization of the optimal resistance strategy for a target whose management may have a preference for control and hence has interests that diverge from those of target shareholders.