A hostile merger is typically accomplished through
A) an exchange of the acquirer's stocks and bonds.
B) a cash purchase.
C) a tender offer.
D) an exchange of the acquirer's stock.

Question

Quizplus · Accepted Answer

A hostile merger is when the target company does not agree to be acquired by the acquiring company. In this case, a tender offer is typically used where the acquiring company makes a direct offer to the shareholders of the target company to purchase their shares. This is usually done through a cash offer or exchange of stock. However, the key aspect of a hostile merger is that the target company is not cooperating, so it is unlikely that they will agree to exchange their shares for the acquirer's stocks or bonds. Therefore, a cash purchase or exchange of the acquirer's stock is not the best choice for a hostile merger.

A Hostile Merger Is Typically Accomplished Through