The shareholders in the acquiring firm may not realize any significant gains from an acquisition. Which one of the following has not been suggested as a reason for this lack of gain?
A) Management may have priorities other than the interests of the stockholders.
B) The price paid for the target firm might equal the target firm's total value to the acquirer.
C) Any synergy produced was paid to the target firm's shareholders.
D) Target firm shares were exchanged for an equal value of acquiring firm shares.
E) Anticipated merger gains may not be fully achieved.

Question

Quizplus · Accepted Answer

The lack of gain for shareholders in the acquiring firm is not attributed to exchanging target firm shares for an equal value of acquiring firm shares. This action does not inherently explain why the acquiring firm's shareholders might not see significant gains. The other options (A, B, C, E) all describe scenarios where the interests or expectations of the acquiring firm's shareholders might not be fully met or prioritized, which can lead to a lack of significant gains from an acquisition.

The Shareholders in the Acquiring Firm May Not Realize Any