Asked by Olivia Anne Samonte on Jun 20, 2024
Verified
When a corporate raider wants to acquire or take over another company,it first offers to buy some or all of the other company's stock at a premium over its current price in a(n) _____.
A) leveraged buyout
B) preemptive merger
C) initial public offer
D) vote by proxy
E) tender offer
Tender Offer
A proposal made by an investor or another company to purchase a substantial amount of a company's shares directly from its shareholders.
Corporate Raider
An investor who buys a large number of shares in a corporation with the aim to gain control of it and make changes to increase its value.
- Acquire knowledge of the different strategic options for corporations, like mergers and acquisitions.
- Gain insight into the reasons and mechanisms of diverse defense tactics against unfriendly takeovers.
Verified Answer
SN
Sandeep NagreJun 22, 2024
Final Answer :
E
Explanation :
A tender offer is when a corporate raider or acquiring company offers to buy shares from the shareholders of the target company at a premium to the current market price, in an attempt to gain control of the company.
Learning Objectives
- Acquire knowledge of the different strategic options for corporations, like mergers and acquisitions.
- Gain insight into the reasons and mechanisms of diverse defense tactics against unfriendly takeovers.
Related questions
Big City Financial Is Allowing Stockholders to Purchase More Shares ...
A Company Seeking to Fight Off a Hostile Takeover Might ...
When Reese Group of Hotels (RGH)was on the Verge of ...
The Stock of a Target Company Is Considered In Play ...
_____________ Is a Defensive Tactic in Which a Firm Makes ...