If an acquiring firm's merger proposal was initially rejected by a target firm's management and its board of directors, the acquiring firm could utilize a tender offer to gain control of the target firm.

Question

Quizplus · Accepted Answer

This is true as a tender offer allows the acquiring firm to bypass the target firm's management and board of directors and directly offer to purchase shares from its shareholders. This may enable the acquiring firm to gain control of the target firm without the approval of its management and board.

If an Acquiring Firm's Merger Proposal Was Initially Rejected by a Target