A minority squeeze-out occurs when:
A)Minority shareholders change the top management of the firm.
B)When an acquirer owns 90% of the shares, the minority of the shareholders are forced to sell their shares for the takeover price.
C)A small minority of shareholders frustrate a fair bid that has already been accepted by a majority of shareholders.
D)All of the above.

Question

Quizplus · Accepted Answer

In a minority squeeze-out, the acquirer owns 90% of the shares and can force the remaining minority shareholders to sell their shares for the takeover price. Option A is incorrect as changing top management does not necessarily involve a squeeze-out. Option C is incorrect as frustration of a fair bid is not a squeeze-out.

A Minority Squeeze-Out Occurs When