Which of the following is the best definition of a circular bid?
A) An interest controlling 50 percent of outstanding votes plus one; thereby it may decide the fate of the firm.
B) Corporate takeover bid communicated to the shareholders by direct mail.
C) A merger in which a new firm is created and both the acquired and acquiring firm cease to exist.
D) The splitting up of a company into two or more companies.
E) The distribution of shares in a subsidiary to existing parent company shareholders.

Question

Quizplus · Accepted Answer

A circular bid refers to a corporate takeover bid where the offer to buy shares is communicated directly to the shareholders, typically through direct mail, rather than through public channels or negotiations with the company's board.

Which of the Following Is the Best Definition of a Circular