Level of merger activity and takeovers

Mergers, merger waves, and the factors that drive these mergers have caused paradigm shifts in the corporate landscape of the United States. Several factors drive these merger waves.

Identify which of the following has been a driving factor for mergers:

Acquirers sought companies that were overvalued as a result of extremely efficient management.

Acquirers sought companies that were undervalued as a result of inefficient management.

If managers of the target company resist the merger because they feel the price is too low or for other reasons, the acquiring firm's offer is said to be a $$