AgroChem, Inc., attempts to acquire a substantial number of the shares of Beanfield Seed Company through a public offer to shareholders. This is
A) a consolidation.
B) a tender offer.
C) a short-form merger.
D) a dissolution.

Question

AgroChem, Inc., attempts to acquire a substantial number of the shares of Beanfield Seed Company through a public offer to shareholders. This is​
A) ​a consolidation.
B) ​a tender offer.
C) ​a short-form merger.
D) ​a dissolution.

Quizplus · Accepted Answer

AgroChem, Inc.'s attempt to acquire a substantial number of shares of Beanfield Seed Company through a public offer to shareholders is known as a tender offer. This is a takeover strategy in which an acquiring company offers to purchase some or all of the shares of a target company at a premium price to gain control of the company.