After a merger has been announced, subsequent cancellation generally causes the potential acquiree's stock to decline in value.

Name: After a merger has been announced, subsequent cancellation generally causes the potential acquiree's stock to decline in value.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This is because the market had already factored in the potential benefits of the merger, and the cancellation means those benefits will not materialize. As a result, investors may sell their shares, causing a decrease in stock value.

After a Merger Has Been Announced, Subsequent Cancellation Generally Causes