Ownership structure, shareholder intervention, and success in takeovers

We consider a situation in which a raider attempts to seize corporate control from a leading large shareholder who chooses between undertaking intervention in the management of the firm and selling its stake to increase its expected payoff. A takeover is more likely to succeed the lower is the ownership concentration of the target firm. However, the higher are the costs of a takeover, the greater must the ownership concentration be for the raider to attempt a takeover. If there is a takeover, the value of the target firm is lower the greater is its ownership concentration.