The purpose of the 1968 Williams Act was to
A) Give target firm shareholders time to review takeover proposals
B) Prosecute target firm shareholders who misuse information
C) Protect target firm employees from layoffs
D) Prevent tender offers
E) Promote tender offers

Question

Quizplus · Accepted Answer

The 1968 Williams Act requires companies to disclose information about takeover bids and gives target firm shareholders time to review the proposals. It aims to protect shareholders by giving them enough information and time to make informed decisions about tender offers. The act also regulates the conduct of bidders and imposes penalties for misleading or fraudulent activities. Therefore, the purpose of the Williams Act is to promote tender offers but with safeguards for shareholders' interests.

The Purpose of the 1968 Williams Act Was to