This paper investigates the optimal acquisition strategy of a multinational …rm willing to buy out one incumbent …rm under incomplete information. There is more than one incumbent …rm. Hence the multinational …rm has several acquisition strategies: …rst, it can o¤er a proposal for a buy-out to only one incumbent …rm of its choice, and it stays out of the market if this particular …rm rejects its o¤er; second, it can o¤er a proposal to a …rm that it randomly chooses, and, if this o¤er is rejected, then it can make another o¤er to the other incumbent …rm; or, third, it can simultaneously o¤er the same proposal to all incumbent …rms. Our main result shows that making sequential o¤ers is the optimal acquisition strategy within the available take-it-or-leave-it acquisition strategies.
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