The risk to the bidder associated with bidding strategy of offering target firm shareholders multiple payment options is that the range of options is likely to discourage target firm shareholders from participating in the bidder's tender offer for their shares.

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Offering multiple payment options is likely to encourage more target firm shareholders to participate in the tender offer as it provides flexibility and choice. However, there may be some administrative and logistical challenges associated with managing multiple payment options.

The Risk to the Bidder Associated with Bidding Strategy of Offering