In a ____, the acquiring company effectively announces that it will pay a certain price above the current existing price for a merger candidate's shares.
A) leveraged buyout
B) tender offer
C) equity carve-out
D) divestiture

Question

Quizplus · Accepted Answer

A tender offer is when an acquiring company offers to pay a premium price above the current market price for the shares of a merger candidate. The purpose of the tender offer is to entice shareholders to sell their shares and give the acquiring company control of the company.

In a ____, the Acquiring Company Effectively Announces That It