Premiums required to entice a target's board of directors to approve an acquisition are usually between 1 and 3 percent of the target's market price.

Question

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Premiums required to entice a target's board of directors to approve an acquisition can vary widely and may be much higher than 3 percent of the target's market price, depending on factors such as the competitiveness of the bidding process and the strategic value of the target to the acquirer.

Premiums Required to Entice a Target's Board of Directors to Approve