When the target firm's managers oppose an acquisition, it is referred to as a(an)
A) stealth raid.
B) adversarial acquisition.
C) hostile takeover.
D) leveraged buyout.

Question

Quizplus · Accepted Answer

A hostile takeover occurs when the acquiring company makes an offer to purchase the target company's shares without the approval or consent of the target company's management. This is typically done when the acquiring company believes that the target company's management is not acting in the best interests of shareholders or that the target company is undervalued.

When the Target Firm's Managers Oppose an Acquisition, It Is