Asked by Simran Nijjar on Jul 19, 2024
Verified
An acquiring firm can bypass a target's management by making a tender offer directly to:
A) creditors.
B) shareholders.
C) preferred stockholders.
D) founders.
Tender Offer
involves a company or individual making a public offer to purchase some or all of shareholders' shares in a corporation at a specified price for a certain period.
Shareholders
Individuals, companies, or institutions that own one or more shares of stock in a public or private corporation, thus holding partial ownership.
- Scrutinize the part played by shareholders and management in the context of mergers and acquisitions.
- Understand the principles of friendly versus hostile takeovers.
Verified Answer
PE
Perla EspinosaJul 20, 2024
Final Answer :
B
Explanation :
A tender offer is an offer made by a suitor company directly to the shareholders of a target company, bypassing the management or board of directors of the target company. Shareholders have the power to accept or reject the offer, which can result in a change of control of the target company.
Learning Objectives
- Scrutinize the part played by shareholders and management in the context of mergers and acquisitions.
- Understand the principles of friendly versus hostile takeovers.
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