Which of the following actions by an acquiring firm signals its belief that postmerger gains will be
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Question:
Which of the following actions by an acquiring firm signals its belief that postmerger gains will be substantially larger than expected?
A. | The acquiring firm makes a cash offer, since this allows the acquirer to solely benefit from gains not yet reflected in the market. | |
B. | The acquiring firm attempts to gain majority ownership, but not complete ownership. | |
C. | The acquiring firm makes an offer with the condition that management must be replaced. | |
D. | The acquiring firm makes a stock offer, since its stock value is priced lower than it will be postmerger. |
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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