An attempt to gain control of the firm by buying sufficient shares of the target firm in themarketplace is known as a__________ and is typically accomplished through a
A) hostile takeover; tender offer.
B) friendly takeover; tender offer.
C) friendly takeover; merger.
D) hostile takeover; merger.

Question

Quizplus · Accepted Answer

A hostile takeover is an attempt to gain control of the target firm without the approval of its management. This is usually done by purchasing a sufficient number of shares in the open market to gain a controlling interest. A tender offer is a type of hostile takeover bid in which the acquiring company offers to buy shares directly from the shareholders of the target company at a premium to the market price.

An Attempt to Gain Control of the Firm by Buying