Which of the following is not one of the benefits of obtaining a toehold?
A) Acquiring shares at the market price requires no premium.
B) A toehold reduces the number of shares needed to be purchased in a later takeover bid.
C) A toehold eliminates competition from other potential acquirers.
D) A toehold can increase the probability of success of a later takeover.

Question

Quizplus · Accepted Answer

A toehold does not eliminate competition from other potential acquirers. It only reduces the number of shares needed to be purchased in a later takeover bid, increases the probability of success of a later takeover, and allows for acquiring shares at the market price without requiring a premium.

Which of the Following Is Not One of the Benefits