Which of the following moves would MOST likely initiate a hostile takeover?
A) The buying company offers to buy the target company's stocks at a price higher than their current value.
B) The buying company delivers an ultimatum to the target company's shareholders to give up their shares.
C) The target company's shareholders offer their company's stocks at an attractive rate to the buying company.
D) The target company's shareholders agree to sell their company's stocks all at the same time.
E) The acquiring company offers to buy the target company's stock at a lower price, indicating the vulnerability of the target.

Question

Quizplus · Accepted Answer

Offering to buy the target company's stocks at a price higher than their current value is a common strategy in hostile takeovers, as it tempts shareholders to sell their shares directly to the acquiring company, bypassing the target company's management and board.

Which of the Following Moves Would MOST Likely Initiate a Hostile