In a triangular cash merger, the target firm may either be merged into an acquirer's operating or shell acquisition subsidiary with the subsidiary surviving or the acquirer's subsidiary is merged into the target firm with the target surviving.

Question

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This statement is true. In a triangular cash merger, there are two possible scenarios for the merger: either the target company is merged into the acquirer's subsidiary (where the subsidiary survives), or the acquirer's subsidiary is merged into the target company (where the target survives).

In a Triangular Cash Merger, the Target Firm May Either