To use the failing firm defense, the merging firms must establish which of the following:

Question

Quizplus · Accepted Answer

The failing firm defense requires the merging firms to establish all of the following conditions: (A) the firm being acquired is not likely to survive without the merger, (B) either the firm has no other prospective buyers or, if there are other buyers, the acquiring firm will affect competition the least, and (C) other alternatives for saving the firm have been tried but have not succeeded. Therefore, D is the correct choice as it includes all the specific conditions required for the failing firm defense.

To Use the Failing Firm Defense, the Merging Firms Must