A public offer to purchase the shares of existing stockholders in order to take the firm over is called a:
A) tender offer.
B) carve-out.
C) spin-off.
D) divestiture.

Question

Quizplus · Accepted Answer

A public offer to purchase the shares of existing stockholders in order to take the firm over is referred to as a tender offer. A tender offer is an attractive method for an acquiring company as it can bypass the board of directors of the target company and directly make an offer to its shareholders.

A Public Offer to Purchase the Shares of Existing Stockholders