Which of the following accurately completes the following statement: A tender offer:
A) Requires approval of the target ﬁrm board of directors.
B) Or acquisition by stock is always unfriendly.
C) Requires the bidder obtain at least a 2/3 majority vote of the target ﬁrm shareholders in order to complete the acquisition.
D) Is followed up by a merger in many acquisitions.
E) May result in some target ﬁrm shareholders holding out, causing the beneﬁts of the acquisition to increase since the bidder doesn't have to pay for their stock.

Question

Quizplus · Accepted Answer

A tender offer is often followed by a merger in many acquisitions as it allows the acquiring company to consolidate control and integrate the target company more effectively.

Which of the Following Accurately Completes the Following Statement: a Tender