[S1] A proxy fight involves having shareholders looking for board members that will allow an acquisition. [S2] A tender offer can be made with or without plans for an acquisition a. Only S2 is true. b. Both are true. c. Only S1 is true. d. Neither is true.
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[S1] A proxy fight involves having shareholders looking for board members that will allow an acquisition. [S2] A tender offer can be made with or without plans for an acquisition
a. Only S2 is true.
b. Both are true.
c. Only S1 is true.
d. Neither is true.
Step by step
Solved in 2 steps
- [S1] By executing a rights offering, we acknowledge the preemptive right of current ordinary shareholders. [S2] When an initial public offering has been made, the underwriter would remit to the issuing entity cash equal to the total issue price less any issuance cost chargeable against the former. *a. Only S1 is true.b. Only S2 is true.c. Both are true.d. Both are false.Which of the following is NOT normally regarded as being a barrier to hostile takeovers? a. Abnormally high executive compensation. b. Targeted share repurchases. c. Poison pills. d. Shareholder rights provisions. e. Restricted voting rights.V3. Which of the following statements about IPO is correct? O In a market without agency problem, Dutch auction is the worst among the three IPO methods in terms of finding out the best reservation price of the IPO shares • In a firm commitment cash offer, the underwriter would buy the whole issue from the issuer, and then sell the issue to the market. O Best efforts cash offer is the most popular IPO method in the US market. • In the best efforts cash offer, a firm would have to continue the issuance even if the demand does not meet their expectation.
- Do solve it as soon as possible Identify which statement is not correct. In a takeover bid to acquire a part or all shares in another company: Select one: a. Friendly merger reduces the chance of overpaying for target’s shares. b. Successful acquirer is likely to pay more for target’s shares in scenarios that include multiple rival bidders. c. Target company management would not accept an offer where the consideration for target’s shares exceeds the NPV of the merger. d. Hostile takeover may result in overpaying for target’s shares.Why might one company have to complete more due diligence than another in a merger? A. None of these answers B. It is important for a company to know what it is buying C. Acquisitions can be risky D. If there is a large size discrepancy the merger seems more like an aquisQ5. Which of the following factors often affects hostile takeover bids? The takeover premium The composition of the board of the target firm The composition of the ownership of the target’s stock The target’s bylaws All of the above
- What options does a company have if its board or management is opposed to an acquisition, a merger, or a takeover?Discuss five different defensive tactics that the target company can use to thwart this takeover attempt. 2) What are the possible cash flow benefits from this acquisition? 3)Should Genie go ahead with the acquisition using cash or stock acquisition?Identify which anti-hostile takeover strategies are being described. [S1] A merger will only push through if at least 80% of the outstanding capital stock vote for this decision. [S2] A third entity purchases the remaining 30% shares so that the would-be acquirer cannot increase its ownership of the corporation from 41% to 71%.a. Supermajority provision; White Knightb. Lobster Trap; Creeping Tender Offerc. Lobster Trap; White Knightd. Supermajority provision; Creeping Tender Offer
- Identify the option that you would consider to be among the disadvantages of forming a limited company.a) Legal control and stringent requirements that have to be compliedb) The need to entrust control and decisions to a fewc) Restrictions on return of capital if in excess of company’s requirementsd) The ease with which the share of ownership could be disposed of Select one: A. b, c & d B. c & d C. a, b & c D. a, c & dAre the statemnets: both correct, both incorrect, or which one is correct?STATEMENT 1: Share options are additional compensation on the part of officers and employees. STATEMENT 2: The intrinsic value of share options is equal to carrying amount over the option price.Q9. Which of the following are generally not considered motives for mergers? Desire to achieve antitrust regulatory approval Desire to achieve economies of scale Desire to achieve economies of scope Strategic realignment Desire to purchase undervalued asset