Which of the following is not true of an acquisition of equity or tender offers?
A)No equityholder meetings need to be held.
B)No vote is required.
C)The bidding ﬁrm deals directly with the equityholders of the target ﬁrm.
D)In most cases, 100% of the equity of the target ﬁrm is tendered.
E)All of the above are true of tender offers.

Question

Quizplus · Accepted Answer

While tender offers do involve the bidding firm dealing directly with equityholders and often do not require equityholder meetings or a vote, it is not true that in most cases 100% of the equity of the target firm is tendered. In fact, it is not uncommon for some equityholders to reject the offer and retain their ownership in the firm.

Which of the Following Is Not True of an Acquisition