Agency Problems Suppose you own shares in a company. The current share price is 2.50. Another company
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Agency Problems Suppose you own shares in a company. The current share price is £2.50. Another company has just announced that it wants to buy your company and will pay £3.50 per share to acquire all the outstanding equity. Your company’s management immediately begins fighting off this hostile bid. Is management acting in the shareholders’ best interests? Why, or why not?
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