In some studies,it has been found that a target company's shareholders have gained even where a takeover bid has been unsuccessful.A likely reason for this is that:
A)the bid prompted a change in the target company's investment strategy.
B)the market may expect another bid for the target company.
C)gains to target shareholders result from the market's reassessment of previously undervalued shares.
D)the bid prompted a change in the target company's investment strategy and that the market may expect another bid for the target company.

Question

Quizplus · Accepted Answer

The correct answer is D because it combines two plausible reasons that could lead to gains for the target company's shareholders: a change in the target company's investment strategy, which could improve its performance and valuation, and the market's expectation of another bid, which could keep the share price elevated due to anticipated interest from other potential acquirers.

In Some Studies,it Has Been Found That a Target Company's