An acquisition may be canceled because of any of the following except:
A)antitrust action.
B)an unusually high premium on stock price.
C)a lawsuit brought by stockholders.
D)disapproval of the target company's management.

Question

Quizplus · Accepted Answer

The wise investor must carefully assess the likelihood of cancellation. Special attention must be given to such factors as the possibility of antitrust action, the attitude of the target company's management toward the merger, the possibility of unhappy stockholders' suits, and the likelihood of poor earnings reports or other negative events.

An Acquisition May Be Canceled Because of Any of the Following