Work detail

Game Theory Approach to Hostile Takeovers

Author: Bc. Lukáš Tuček
Year: 2017 - summer
Leaders: RNDr. Michal Červinka Ph.D.
Consultants:
Work type: Bachelors
Language: English
Pages: 55
Awards and prizes:
Link:
Abstract: This bachelor thesis investigates the field of hostile takeovers predominantly from the
perspective of the management of the target company. Particular emphasis is placed on
review of the defense strategies against hostile takeovers and ways in which they might be
abused by the management. This thesis attempts to formulate a game-theoretic model
describing the process of a hostile takeover as an extensive-form game with perfect information.
Payoff functions for the game further in the thesis computed as Nash equilibria
of bargaining problem with the current state of the game as a base for the utility gains.
We then briefly discuss the implied relationship among the raider, management and the
shareholders.

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