Question
Pym Particles, Inc. learns it will be the subject of a private tender offer. A tender offer is when an investor proposes buying shares from
Pym Particles, Inc. learns it will be the subject of a private tender offer. A tender offer is when an investor proposes buying shares from every shareholder of a publicly-traded company for a certain price at a certain time. The investor normally offers a higher price per share than the company’s stock price, providing shareholders a greater incentive to sell their shares. For example, a stock’s current price is $10 per share. An investor wanting to take over the company issues a tender offer for $12 per share on the condition he acquires at least 51% of the shares.
Management disapproves of this private tender offer because it threatens their jobs. Ms. Hope Pym, CFO, orders Mr. Scott Lang, a certified management accountant (CMA), to make non-GAAP changes to several accounting policies and practices before the tender offer is made public so as to make the company a less-attractive target. Which standards of ethical conduct for management accountants were violated? Why?
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Step: 1
Tender Offer A proposal submitted by a prospective investor to the shareholders of a publicly traded company Home Resources Knowledge Deals Transactions Tender Offer What is a Tender Offer A tender of...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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