We study horizontal partial acquisitions in an oligopolistic industry in the absence of synergies. Contrary to existing results, we show that a dominant shareholder may choose to acquire toeholds in rivals, silent or controlling, which harm other shareholders and decrease welfare. Moreover, the existence of initial toeholds in rivals generally entrance the incentive to acquire.
CHARLETY-LEPERS, P., SAGART, M.C. and SOUAM, S. (2004). Real Market Concentration through Partcal Acquisitions. In: EARIE'04 Proceedings. Europen Association for Research in Industrial Economics (EARIE).