1. Raider Corporation (RC) attempted to take over Targetnorth Corporation (TC) using a tender offer. The tender offer price was thirty percent higher than the current market price for TC shares. TCs Board of Directors opposed RCs tender offer, as a result of which it failed. Shareholders of TC who had hoped to sell their shares at a large profit want to bring an action against TCs Board of Directors for rejecting the tender offer. Will the shareholders be able to succeed in such an action?

A. Yes, if they can show that TCs Board did not carefully study the RC tender offer before rejecting it.

B. Yes, if they can show that the shareholders would have been financially better off if the tender offer had been accepted.

C. No, the business judgment rule grants the Board full discretion in deciding whether to accept or reject a tender offer.

D. No, the shareholders Revlon duties prohibit such an action unless the shareholders first demand that the Board accept the tender offer.