Control premiums soar on the back of the GFC

21 September, 2010, Australia – RSM Bird Cameron’s Control Premium Study, released today, has found that there has been a significant increase the level of control premium in Australian Takeovers and identified some clear trends emerging for control premiums paid in Australia’s leading industries. The study found that on the back of the global economic downturn average control premiums soared in 2009 and 2010 to 42% and 40%, compared to the 5 year average of 31%.   

The study analyses 212 successful takeover offers and schemes of arrangement over the 5 year period ending 30 June 2010 involving companies listed on the Australian Securities Exchange. In addition to providing an analysis of how control premiums vary by industry and in the time period under review, it also provides an insight into how control premiums vary by nature of the consideration, and assesses what impact pre offer shareholdings held by acquirers in targets and bid speculation have on the level of control premium paid. Read more ❯