Asked by Christian Schopfer on Jul 24, 2024
Verified
Through a tender offer, an acquiring corporation deals directly with a target company's management in seeking to purchase the target's stock.
Tender Offer
An offer to purchase made by one company directly to the shareholders of another (target) company; often referred to as a “takeover bid.”
Target Company's Management
The executive and senior officers responsible for operating and making strategic decisions for a company that is being considered for acquisition or merger.
- Acquire knowledge on defensive tactics against hostile takeovers, including the execution of self-tenders.
Verified Answer
PP
Pongsathorn PootongJul 26, 2024
Final Answer :
False
Explanation :
In a tender offer, the acquiring corporation bypasses the target company's management and makes the offer directly to the shareholders to buy their shares.
Learning Objectives
- Acquire knowledge on defensive tactics against hostile takeovers, including the execution of self-tenders.