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Company ABC announces that it has agreed to be acquired. ABC launches a Change of Control offer to repurchase its outstanding bonds at 1 0
Company ABC announces that it has agreed to be acquired. ABC launches a Change of Control offer to repurchase its outstanding bonds at of par. Bondholders unanimously rejected the Change of Control offer, and the bonds remained outstanding following the acquisition. Explain why bondholders might choose to reject the offer. Provide two different scenarios where this would happen.
Company ABC announces that it has agreed to be acquired. ABC launches
a Change of Control offer to repurchase its outstanding bonds at of par.
Bondholders unanimously rejected the Change of Control offer, and the bonds
remained outstanding following the acquisition. Explain why bondholders might
choose to reject the offer. Provide two different scenarios where this would happen.
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