Which one of the following is a characteristic of an acquisition by stock?
A) Shareholders must vote and approve an acquisition.
B) The target ﬁrm's management can be bypassed by the use of a tender offer.
C) Complete absorption of one ﬁrm occurs in an acquisition.
D) Minority shareholders are ignored in the acquisition process.
E) The acquisition cost is normally lower than that of a merger.

Question

Quizplus · Accepted Answer

In an acquisition by stock, the acquiring company can make a tender offer directly to the shareholders of the target company, bypassing the target firm's management.

Which One of the Following Is a Characteristic of an Acquisition