The FT reported recently that the medium acquisition premium paid (over price five days before announcement) has nudged higher this year to
11%, but is still well below the 20% plus levels of 1999-2001.
I am looking for reasons of how this has been brought about. I thought that maybe market rumors could have had a positive impact on share prices prior to the official announcement eventually leading to a reduction in the premium paid. Furthermore, could the concentrated M&A demand of investors in 2001 in one single sector (Internet) have had an upward affect on premiums ?
Any ideas?
Cheers,
D