A merger transaction is not supported by the target firm's management, forcing the acquiring company to try to gain control of the firm by buying shares in the marketplace. This is an example of ________.
A) financial merger
B) hostile takeover
C) congeneric formation
D) strategic merger

Question

Quizplus · Accepted Answer

A hostile takeover is a situation where the acquiring company tries to gain control of the target firm without the support of its management. This is typically done by buying shares in the marketplace or through a tender offer. The other choices do not fit the scenario described in the question. A financial merger is a type of merger where the primary goal is to achieve financial benefits through cost savings or increased efficiency. A congeneric formation involves the merging of two companies in the same or related industries. A strategic merger is a merger where the goal is to create synergy and gain a competitive advantage.

A Merger Transaction Is Not Supported by the Target Firm's