Dissatisfied shareholders of the acquired firm in a merger can:
A) decide not to tender their shares.
B) exercise their appraisal rights and demand their shares be purchased at fair value.
C) decide not to vote for the current management by proxy.
D) do nothing and are stuck with the outcome.

Question

Quizplus · Accepted Answer

Exercise their appraisal rights and demand their shares be purchased at fair value. This is the best choice as it allows the dissatisfied shareholders to receive fair compensation for their shares in the merger. The other options may not result in any significant change in the outcome for the shareholders.

Dissatisfied Shareholders of the Acquired Firm in a Merger Can