The Board of Layne Corporation recently stated that under no circumstances would it allow Gwen Corporation to take-over its corporation. The problem is that the Board only owns five percent of the shares. Therefore, Gwen Corporation contacts all of the other shareholders and offers to purchase their shares of stock. What is this process called?

Question

Quizplus · Accepted Answer

This process is called a "stock purchase," where a company offers to buy shares directly from the shareholders of another company, bypassing the board's approval.

The Board of Layne Corporation Recently Stated That Under No