If XYZ Company makes a tender offer for 75% of ABC Company and 95% of the shares are tendered. What percentage of shares tendered do each shareholder that accepted the tender offer get to tender?
A) 75.00%
B) 78.95%
C) 95.00%
D) 100.00%

Question

Quizplus · Accepted Answer

Each shareholder that accepted the tender offer gets to tender 78.95% of their shares. This is calculated by dividing the percentage of shares XYZ Company wants to acquire (75%) by the percentage of shares tendered (95%), resulting in 75%/95% = 78.95%.

If XYZ Company Makes a Tender Offer for 75% of ABC