Both the acquirer and target boards of directors have a fiduciary responsibility to demand that the merger terms be renegotiated if the value of the offer made by the bidder changes materially relative to the value of the target's stock or if their has been any other material change in the target's operations.

Question

Quizplus · Accepted Answer

Both the acquirer and target boards of directors have a fiduciary responsibility to act in the best interest of their shareholders and to ensure that the terms of any merger or acquisition are fair and reasonable. If there is a material change in the value of the offer or in the target's operations, they have a duty to renegotiate the terms to ensure that shareholders are adequately compensated.

Both the Acquirer and Target Boards of Directors Have a Fiduciary