Which one of these statements is correct?
A)The titles to the target firm's individual assets must be transferred to the acquirer in a merger.
B)If a target firm's managers oppose an acquisition,the acquisition cannot occur.
C)The acquisition of a target firm's assets can be done without the approval of the target firm's shareholders.
D)A tender offer must be accepted by all of the target firm's shareholders to be effective.
E)An acquisition of stock in a target firm may later be followed with a formal merger.

Question

Quizplus · Accepted Answer

An acquisition of stock in a target firm may be followed by a formal merger. This allows the acquiring firm to gradually acquire more control over the target firm, and can also provide a way for the target firm's shareholders to receive a premium for their shares. However, approval from both parties and regulatory bodies may be required for the merger to take place. The other options are incorrect - in a merger, the titles to the target firm's assets are typically transferred to the acquirer, approval from the target firm's managers is not always required for an acquisition, and a tender offer can be effective even if it is not accepted by all of the target firm's shareholders.

Which One of These Statements Is Correct