For a hostile takeover to succeed, the acquirer must appeal to the target shareholders; this is usually done through ________.
A) a tender offer and a proxy fight
B) a tender offer and a poison pill
C) a white knight and a proxy fight
D) a staggered board and a white knight

Question

Quizplus · Accepted Answer

A tender offer is a direct offer to the shareholders of the target company to purchase their shares at a premium. A proxy fight is an attempt to gain control of the target company's board of directors by soliciting proxy votes from shareholders. These two tactics are commonly used in hostile takeovers to appeal to the target shareholders and gain their support. Choice B is incorrect because a poison pill is a defensive tactic used by the target company to prevent a hostile takeover, not an appeal to the shareholders. Choice C is incorrect because a white knight is a friendly third-party bidder that is brought in to fend off a hostile takeover, not a tactic used by the acquirer. Choice D is incorrect because a staggered board is a defensive tactic used by the target company to make it more difficult for an acquirer to gain control of the board, not an appeal to the shareholders.

For a Hostile Takeover to Succeed, the Acquirer Must Appeal