Who usually wins in domestic U.S. takeovers?

Question

Quizplus · Accepted Answer

Shareholders of the target firm usually receive a premium on their shares when a takeover occurs, therefore they typically benefit the most from the transaction. The managers of the target firm may be forced out or receive a financial incentive to cooperate with the takeover, but they do not always come out as winners. Shareholders of the acquiring firm may also benefit from a successful takeover, but they do not typically gain as much as the shareholders of the target firm. Therefore, the best choice is C, shareholders of the target firm.

Who Usually Wins in Domestic U.S. Takeovers