Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/278621 
Year of Publication: 
2023
Series/Report no.: 
ECONtribute Discussion Paper No. 250
Publisher: 
University of Bonn and University of Cologne, Reinhard Selten Institute (RSI), Bonn and Cologne
Abstract: 
This paper provides evidence of deliberate private-information disclosure within banks' international business networks. Using supervisory trade-level data, we show that banks with closer ties to a target advisor in a takeover buy more stocks of the target ffrm prior to the deal announcement, enabling them to benefft from the positive announcement return. We do not ffnd such effects for bank connections to acquirer advisors or for trades in acquirer stocks. Target advisors benefit from leaking information about takeover bids to connected banks, as it drives up the premium paid without compromising the probability of bid success.
Subjects: 
bank networks
trading
information spillovers
mergers and acquisitions
syndicated lending
JEL: 
G11
G15
G21
G24
Document Type: 
Working Paper

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