A no-shop clause is a promise from:
A)A potential acquirer to seek possible alternative target firms in order to reduce the bid price.
B)A potential target not to seek another buyer, thus demonstrating its commitment to completing the transaction.
C)A potential acquirer to make a firm offer, thus requiring the target firm not to seek other potential acquirers.
D)None of the above.

Question

Quizplus · Accepted Answer

A no-shop clause is a promise from the potential target not to seek another buyer, thus demonstrating its commitment to completing the transaction. This clause is designed to prevent a bidding war and ensure that the potential acquirer has exclusive negotiating rights.

A No-Shop Clause Is a Promise From