Which one of these statements is true?

• One disadvantage of a merger is that it requires the approval of both the target and bidder firm's shareholders.

• Normally, the target firm's management is very cooperative during the merger process.

• A consolidation is a complete absorption of a target firm by a bidder firm, which retains its name and identity.

• An entirely new firm is created when any type of merger or consolidation occurs.

• Mergers are legally complex and expensive.