Once a tender offer is announced,the target's share price immediately rises by the amount of the acquisition premium.

Question

Quizplus · Accepted Answer

While the target's share price often rises after a tender offer is announced, it does not necessarily rise by the exact amount of the acquisition premium. The actual increase depends on various factors including market perception, the perceived likelihood of the deal closing, and the financial health of the target company.

Once a Tender Offer Is Announced,the Target's Share Price Immediately