In which cases are takeovers likely to be hostile?
A)Cases where synergies are expected.
B)Cases where economies of scale are likely to result.
C)Cases where target management is inefficient.
D)Cases of horizontal takeovers.

Question

Quizplus · Accepted Answer

Hostile takeovers are more likely in cases where target management is inefficient as the acquirer may see an opportunity to enhance the value of the target company by replacing the current management team. In cases where synergies or economies of scale are expected, the takeover may be negotiated and friendly. Horizontal takeovers may also lead to hostile takeovers, but it is not the only reason.

In Which Cases Are Takeovers Likely to Be Hostile