A tender offer is a proposal made directly to the target firm's board as the first step leading to a friendly takeover.

Name: A tender offer is a proposal made directly to the target firm's board as the first step leading to a friendly takeover.
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Question

Quizplus · Accepted Answer

While a tender offer can lead to a takeover, it is not necessarily the first step in a friendly takeover. In a friendly takeover, the two companies may negotiate directly without the use of a tender offer.

A Tender Offer Is a Proposal Made Directly to the Target