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 is a corporate takeover bid that is communicated directly to the shareholders by mail, as opposed to being announced publicly.

Which of the Following Is the Best Deﬁnition of a Circular