125
TABLE 7.5
Control Premium, Value of Pure Control, and Value of Synergy as a Percent of Preannouncement Stock Price
Sample 3
Sample 2
Sample 2
Sample 1 Less
Less Firms with
Firms with Negative
Negative Estimated
Sample 1
Control Premiums: 74
Synergy Value: 58
Original Sample: 86 Firms
Firms in Sample
Firms in Sample
Average
Median
SD
Average
Median
SD
Average
Median
SD
Reported
controlpremium
47
36
66
56
44
65
66
50
70
Pure control
premium
22
16
18
21
15
19
17
15
13
Estimated
synergy
26
18
66
36
24
64
49
34
65
SD
=
standard deviation.