Buyers often prefer "friendly" takeovers to hostile ones because of all of the following except for:
A) Can often be consummated at a lower price
B) Avoid an auction environment
C) Facilitate post-merger integration
D) A shareholder vote is seldom required
E) The target firm's management recommends approval of the takeover to its shareholders

Question

Quizplus · Accepted Answer

A shareholder vote is often required in both friendly and hostile takeovers, making it not a distinguishing factor that would make buyers prefer friendly takeovers. In friendly takeovers, the cooperation of the target firm's management can facilitate the process, but shareholder approval is typically still necessary.

Buyers Often Prefer "Friendly" Takeovers to Hostile Ones Because of All