Which of the following statements is FALSE?

A.

It is possible that overconfident CEOs pursue mergers that have low chance of creating value because they truly believe that their ability to manage is great enough to succeed.

B.

In M&A transactions, the considerations paid to target shareholders are limited to stock, cash, or a mix of the two.

C.

There are two primary mechanisms by which ownership and control of a public corporation can change: Either another corporation or group of individuals can acquire the target firm, or the target firm can merge with another firm.

D.

When a hostile takeover appears to be inevitable, a target company will sometimes look for another, friendlier company to acquire it.