In a hostile takeover:

Question

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In a hostile takeover, the acquirer bypasses the target company's management and board of directors and directly approaches the shareholders with a tender offer to purchase their shares. The offer is called "hostile" because it is not endorsed or supported by the target company's management. Choice A is incorrect because in a friendly takeover, the acquirer makes an offer directly to the target company's management or board of directors. Choice C and D are incorrect as they do not necessarily apply to all hostile takeovers.

In a Hostile Takeover