Asked by
Marquise Dorcent
on Oct 07, 2024Verified
Which of the following factors does NOT influence the consideration of a merger and an acquisition of stocks?
A) Shareholders are dealt with directly to bypass the target management and board of directors.
B) In a tender offer, usually some minority shareholders do not tender (offer) their shares. This can result in preventing the target firm from being completely absorbed
C) Target management may be unfriendly and resist an offer, which usually results in a higher stock price.
D) The target company's supplier has developed a new high-quality product.
Merger
The joining of two firms to form a single firm.
Acquisition
The process by which one company purchases most or all of another company's shares to gain control.
- Understand the strategic motives and financial implications of mergers and acquisitions.
Verified Answer
KB
Learning Objectives
- Understand the strategic motives and financial implications of mergers and acquisitions.