The "two-step buyout" procedure induces stockholders to delay their reaction to the offer, since they will receive a higher price later.

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The "two-step buyout" typically involves an initial tender offer to purchase some or all of the shareholders' shares at a specified price, followed by a second step to acquire the remaining shares, often through a merger. This procedure is designed to quickly acquire a significant stake in the target company, not to induce stockholders to delay their reaction in hopes of a higher price later.

The "Two-Step Buyout" Procedure Induces Stockholders to Delay Their Reaction