Assume an acquiring firm obtained control of a target firm through a tender offer.This group is now proposing a merger that is generally referred to as a:
A)proxy fight.
B)street sweep.
C)waning motion.
D)toehold.
E)cleanup merger.

Question

Quizplus · Accepted Answer

The term "cleanup merger" refers to a type of merger where an acquiring company has already gained control of a target company through a tender offer and is now proceeding with a merger to complete the acquisition process. This type of merger is also sometimes called a "second-step merger" or "squeeze-out merger."

Assume an Acquiring Firm Obtained Control of a Target Firm