This paper examines the combination of cash and share payments proposed in the corporate acquisition process. Particularly, it analyzes the conditions of an optimal mixed payment in the context of an asymmetry of information. Using a model, we highlight that setting the conditions of payment is...

This paper looks at the combination of cash and share payment in takeovers, particularly in analyzing the condition of its optimal mix setting. This problem develops in a context of asymmetry of information for the buyer has lower information on the target firm than the sellers. But the bidder...