Asked by Nicole Hoskins on Jul 17, 2024

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If a bidding firm wishes to bypass the board of directors of the target firm and deal directly with the shareholders of the target firm, the bidding firm should attempt to acquire the target firm via a:

A) Consolidation.
B) Merger.
C) Stock acquisition.
D) Leveraged buyout.
E) Going-private transaction.

Going-Private Transaction

A process in which a publicly traded company is transformed into a privately held entity, often through a buyout from private investors.

Bidding Firm

A company that proposes a financial offer in an attempt to acquire another company or win a contract.

Board of Directors

A group of individuals elected by the shareholders of a corporation to oversee the management and make major decisions affecting the company's policies and strategies.

  • Determine the approaches and reasons for firm consolidations.
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NT
Naturally TootieJul 17, 2024
Final Answer :
C
Explanation :
A stock acquisition allows the bidding firm to purchase shares directly from the shareholders of the target firm, bypassing the board of directors. This method involves buying the shares of the target company's stock directly from the shareholders, often through a tender offer, where the bidding firm proposes a specific price to buy the shares directly from the shareholders.