Which of the following is a tender offer that utilizes borrowed funds and the acquired firm's assets as collateral?
A) unfriendly take-over
B) divestiture
C) repurchase
D) leveraged buyout

Question

Quizplus · Accepted Answer

A leveraged buyout is a tender offer in which the acquiring company borrows funds and uses the assets of the acquired firm as collateral. This allows the acquiring company to make a large acquisition without having to use a significant amount of its own capital.

Which of the Following Is a Tender Offer That Utilizes