Which of the following factors influences the consideration of a merger and an acquisition of stocks?
A) Shareholders are dealt with directly to bypass the target management and board of directors.
B) In a tender offer, usually some minority shareholders do not tender stopping complete firm absorption.
C) Target management may be unfriendly and resist an offer. Resistance usually makes the stock price higher.
D) Shareholders are dealt with directly to bypass the target management and board of directors; in a tender offer, usually some minority shareholders do not tender stopping complete firm absorption; and target management may be unfriendly and resist an offer. Resistance usually makes the stock price higher.

Question

Quizplus · Accepted Answer

All of the options listed in the answer are factors that can influence the consideration of a merger and an acquisition of stocks. Shareholders may sometimes be dealt with directly to bypass the target management and board of directors, which can make the acquisition process smoother. In a tender offer, some minority shareholders may not tender their stocks, which can slow down or stop the absorption of the firm. If the target management is unfriendly and resistant to the offer, this can create more hurdles and increase the stock price, which can impact the decision to proceed with the merger or acquisition.

Which of the Following Factors Influences the Consideration of a Merger