Which of the following statements is false?
A)A spin-off implies that the target is worth more to the acquiring company than it was worth to its previous shareholders.
B)Cost savings can be achieved in a vertical takeover.
C)The free cash flow theory shows how some takeovers are evidence of the conflicts of interest between shareholders and managers,while others are a response to the problem.
D)None of the given options.

Question

Quizplus · Accepted Answer

A spin-off does not imply that the target is worth more to the acquiring company, as it involves a company divesting a portion of its business, not an acquisition scenario.

Which of the Following Statements Is False