Target managements that resist mergers usually claim the offer is not in the best interest of stockholders because the price offered is too low. However, they may be:
A)trying to get the acquirer to raise the offer.
B)trying to get the acquirer to offer them bonuses to support the proposal.
C)concerned about their jobs because target managements usually lose power after mergers.
D)concerned that bondholders are being frozen out of the deal.

Question

Target managements that resist mergers usually claim the offer is not in the best interest of stockholders because the price offered is too low.  However, they may be:
A)trying to get the acquirer to raise the offer.
B)trying to get the acquirer to offer them bonuses to support the proposal.
C)concerned about their jobs because target managements usually lose power after mergers.
D)concerned that bondholders are being frozen out of the deal.

Quizplus · Accepted Answer

The Answer of Target managements that resist mergers usually claim the offer is not in the best interest of stockholders because the price offered is too low.  However, they may be:
A)trying to get the acquirer to raise the offer.
B)trying to get the acquirer to offer them bonuses to support the proposal.
C)concerned about their jobs because target managements usually lose power after mergers.
D)concerned that bondholders are being frozen out of the deal.

Target Managements That Resist Mergers Usually Claim the Offer Is