A structured purchase of the target's shares in which the acquirer announces a public offer to buy a minimum number of shares at a specific price is called

Question

Quizplus · Accepted Answer

This scenario describes a tender offer, which is a public offer made by an acquirer to buy a minimum number of shares from the target's shareholders at a specific price. A LBO (A) involves using debt to finance an acquisition and taking the target company private. An exchange offer (C) involves offering shares of the acquiring company in exchange for shares of the target company. Greenmail (D) involves a target company purchasing its own shares back from the acquirer at a premium price to prevent a takeover.

A Structured Purchase of the Target's Shares in Which the Acquirer