Table III Average and Median 'leo-Day Abnormal Stock Returns for Bidders Offering Stock at the Announcement of a Takeover Proposal by Whether a New Blockholder Emerges from Target Firm Abnormal stock returns are estimated using the standard market model method as in Brown and Warner (1985). The announcement date (day 0) is the day of the first Wall Street Journal announcement of an acquisition proposal or the day after the announcement appears on the Dow Jones newswire. The two-day announcementperiod abnormal returns are measured from day 1 through day 0. Market model parameters are estimated over the period from day 210 to day 11. Stock offers include preferred stock and convertible debt exchanges and mixed offers where a combination of cash and stock is paid. Blockholder is a beneficial owner of 5 percent or greater of outstanding shares. The Wilcoxon signed-rank test is used for the per cent positive. Number of Average (median) Observations Abnormal Return tStatistic Percent Positive Panel A: Acquisition of Privately Held Target 75.6** 62.4** 41.7 26.1** New blockholder from target 41 4.96% (4.16%) No new blockholder from target 109 1.77% (0.60%) Panel B: Acquisition of Publicly Traded Target New blockholder from target 12 1.24% (*3.00%) No new blockholder from target 142 2.56% (*2.02%) ** indicates significance at the 1 percent level