In a de facto merger:
A)Bidders may be able to avoid all of 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

Question

Quizplus · Accepted Answer

In a de facto merger, the bidder is treated as if they have acquired the target, even if no formal acquisition took place. The other choices are incorrect. Bidders do not need to own a specific percentage of the target's stock for a de facto merger to occur, and California law may not necessarily be the only applicable law. While bidders may be able to avoid some of the target's liabilities in a de facto merger, they cannot avoid all of them.

In a De Facto Merger