Takeover Defenses And Shareholder Voting

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Takeover Defenses And Shareholder Voting
David Austen Smith
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I-) > 0, by W^ ^ 0. But c" > implies the RHS(a. L) y*(x I x?), again use the first order condition (3) to get: (a. 2) Wi(x + y*(x I x?), x? I-) - Wi(y*(0 I x?), x? 1-1 = c'(y*(x I x?)) - c'(y*(0 I x?)). Suppose y*(0 I x?) implies RHS(a. 2) > 0. But x = x? > 0, so that Wj ^ and W12 = imply: ■ [x + y*(x I X?)] > y*(0 I 0).
Corollary 1: Let x = x? > 0. Then [x + y*(x I x?)] > y*(0 1 x?). Proof: Use (3) and Proposition 1 with Wj j dy*(x I x?)/dx? = -[Wn+^U^/TWl r^"! dco(x, y I x?)/dx? = W^ +
...W2, which a priori has ambiguous sign.
17 (a. 6) dco(0, y I x?)/cix?


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