Asked by ethan battista on Apr 23, 2024
Verified
Enchilada Inc. seeks to purchase a substantial number of the voting shares of Fajita Company. Enchilada deals directly with the shareholders of Fajita. Enchilada offers a price higher than the market price of Fajita's shares. This is
A) a poison pill.
B) a tender offer.
C) a self-tender.
D) a breach of the business judgment rule.
Tender Offer
A public offer made by a person, company, or entity to purchase a substantial portion of another company's shares or bonds.
Voting Shares
Stocks that grant the holder the right to vote on corporate matters at shareholders' meetings.
Poison Pill
a defense strategy used by companies to prevent or discourage unwanted takeover attempts by making the company less attractive to the acquirer.
- Understand the process and legal framework of tender offers and takeover defenses.
Verified Answer
Learning Objectives
- Understand the process and legal framework of tender offers and takeover defenses.
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