For a hostile takeover to succeed,the acquirer must appeal to the target shareholders; this is usually done through:
A)a tender offer and a proxy fight.
B)a tender offer and a poison pill.
C)a white knight and a proxy fight.
D)a staggered board and a white knight.
E)a recapitalization and a poison pill.

Question

Quizplus · Accepted Answer

A tender offer and a proxy fight are common strategies used in hostile takeovers. A tender offer involves the acquirer offering to buy shares from the target company's shareholders at a premium to the market price, directly appealing to them. A proxy fight involves the acquirer attempting to convince shareholders to vote out the existing management or board in favor of those who support the takeover.

For a Hostile Takeover to Succeed,the Acquirer Must Appeal to the Target