In a de facto merger:
A) Bidders may be able to avoid all the target's liabilities
B) Bidders own at least 30% of the target's stock
C) Only California law applies
D) The bidder is considered to have acquired the target even if no formal acquisition took place True or False Questions

Question

Quizplus · Accepted Answer

In a de facto merger, the bidder is considered to have acquired the target even if no formal acquisition process took place. This concept recognizes the substance over the form of the transaction, where the acquiring company effectively takes over another company, including its operations, assets, and liabilities, without going through the traditional merger process.

In a De Facto Merger