A friendly merger transaction ________.
A) is a transaction in which merger is completed by forceful acquisition of the target's shares from the secondary market
B) requires a public announcement for its plan of acquisition
C) can be consummated through an exchange of the acquirer's stock and cash
D) can only be completed by purchasing all the outstanding bonds of the target firm

Question

Quizplus · Accepted Answer

A friendly merger transaction can be achieved through an exchange of the acquirer's stock and cash, as both parties involved are willing to engage in the transaction. It does not necessarily require forceful acquisition or the purchase of outstanding bonds. While a public announcement is often made for transparency and legal requirements, this is not the defining characteristic of a friendly merger transaction.

A Friendly Merger Transaction ________