A theory on merger timing and announcement returns

This paper develops a dynamic model for the timing and terms of mergers and acquisitions. In contrast to other models, we show that firms agree about the timing independently from how the merger surplus is shared. Firms agree on the timing and discuss the sharing rule of the merger surplus according to their bargaining power or some other exogenous factor. We also show that, under asymmetric information, the combination of surprises regarding merger timing and merger terms, can produce either negative or positive abnormal returns for the merging firms.COMPETE, QREN, FEDER, FC

Bargaining merger terms and the effect on the announcement returns

This paper develops a dynamic model for the timing and terms of mergers. In contrast to other models, we show that firms agree about the timing independently from how the merger surplus is shared or their bargaining power. We show that, under asymmetry of information, the combination of surprises on the merger timing and the merger terms, can produce negative or positive abnormal announcement returns for the merging firms. The abnormal returns are also possible under perfect information, even if the announcements are expected by the market, and occur as a result of the event-study methodology.- This research has been financed by the European Regional Development Fund through COMPETE 2020 -Programa Operacional Competitividade e Internacionalizacho (POCI) and by Portuguese public funds through FCT in the framework of the projects POCI-01-0145-FEDER-006683 (Artur Rodrigues) and POCI-01-0145-FEDER-006890 (Paulo J. Pereira). We thank Alcino Azevedo, Bart Lambrecht, Dean Paxson, Elmar Lukas, Luis Aguiar-Conraria, Rosa Branca-Esteves, and participants of the 2015 Annual Real Options Conference for their helpful comments. Any remaining errors are the sole responsibility of the authors

Investing in a random start American option under competition

In this paper we develop a model to determine the value of the opportunity to invest in a random start American real option. In contrast to a typical American option, the random start option only exists if an exogenous event occurs materializing the American option to invest. In addition, the effect of competition is also considered in the model. A higher risk of competition and a higher probability of the exogenous event promotes investment. Uncertainty has a non-monotonic effect on investment timing.- This work was carried out within the funding with COMPETE reference n. POCI-01-0145-FEDER-006683 (Artur Rodrigues) and POCI-01-0145-FEDER-006890 (Paulo J. Pereira), FCT/MEC's (Fundacao pars a Ciencia e a Tecnologia, I.P.) financial support through national funding and by ERDF through the Operational Programme on Competitiveness and Internationalization - COMPETE 2020 under the PT2020 Partnership Agreement

Investment Timing and Social Welfare under Feed-in Tariff Contract

This paper presents a novel model to analyze the effects on the investment timing and social welfare of three feed-in tariffs (FIT) within an oligopolistic market structure. The FIT contracts are the fixed price, the fixed premium, and the minimum price guarantee. The model allows the identification of the optimal time to deploy a renewable energy project and the value of the tariff that maximizes the social welfare for each FIT design. These optimal tariffs generate the same investment timing and the same social welfare

Photodynamic therapy for colorectal cancer: an update and a look to the future

This review provides an update on the current state of photodynamic therapy (PDT) for colorectal cancer (CRC) and explores potential future directions in this field. PDT has emerged as a promising minimally invasive treatment modality that utilizes photosensitizers and specific light wavelengths to induce cell death in targeted tumor tissues. In recent years, significant progress has been made in understanding the underlying mechanisms, optimizing treatment protocols, and improving the efficacy of PDT for CRC. This article highlights key advancements in PDT techniques, including novel photosensitizers, light sources, and delivery methods. Furthermore, it discusses ongoing research efforts and potential future directions, such as combination therapies and nanotechnology-based approaches. By elucidating the current landscape and providing insights into future directions, this review aims to guide researchers and clinicians in harnessing the full potential of PDT for the effective management of CRC.(PTDC/FIS-OTI/1259/2020

Small MAD families whose Isbell-Mr\'owka spaces are pseudocompact

Given a countable transitive model $M$ for ZFC+CH, we prove that one can produce a maximal almost disjoint family in $M$ whose Vietoris Hyperspace of its Isbell-Mr\'owka space is pseudocompact on every Cohen extension of $M$. We also show that a classical example of $\omega_1$-sized maximal almost disjoint family obtained by a forcing iteration of length $\omega_1$ in a model of non CH is such that the Vietoris Hyperspace of its Isbell-Mr\'owka space is pseudocompact.Comment: 14

Designing optimal M&A strategies under uncertainty

The recent surge in M&A activities highlights firms' motivation to gain or maintain market leadership. Along with the unparalleled volume of M&As, more and more firms favor establishing acquisition programs that lead to multiple subsequent M&As over time. In this paper, we study the entrance in a market by means of M&A when different strategies to acquire a prominent incumbent are available to the acquirer. In particular, the firm might opt for a big leap, where it acquires the prominent incumbent; the alternative is to design an acquisition program that allows moving in small steps by acquiring a minor company first and the larger prominent player later on. We employ a dynamic game-theoretic real options model to investigate the effect of uncertainty and synergies on the strategy choices and also consider alternative contract designs for the acquisition program, such as hostile, friendly or mixed. Our findings reveal that firms prefer acquisition programs to big leap strategies when the industry exhibits high levels of uncertainty and can occur even when the acquisition of the first target destroys value. Moreover, some acquisition programs profit from a first mover pass-through where the acquirer can jointly utilize his first-mover advantage when negotiating with multiple targets. Finally, novel testable hypotheses are derived from the model. (C) 2019 Elsevier B.V. All rights reserved.This work was carried out within the funding with COMPETE reference no. POCI-01-0145-FEDER-006683 (Artur Rodrigues) and POCI-01-0145-FEDER-006890 (Paulo J. Pereira), FCT/MEC's (Fundacao para a Ciencia e a Tecnologia, I.P.), and ERDF through the Operational Programme on Competitiveness and Internationalization - COMPETE 2020 under the PT2020 Partnership Agreement. We thank the Editor and the three anonymous referees for their valuable comments and suggestions. We also thank Lenos Trigeorgis, Dean Paxson, Han Smit, Kuno Huisman, Shahriar Khaksari, Nick Huberts, Arkadiy Sakhartov, and participants of the 2017 Annual Real Options Conference in Boston for their helpful comments. Any remaining errors are the sole responsibility of the authors