Asked by chisom chikezie on Jul 17, 2024
Verified
To resist a takeover, a target company may make a self-tender .
Takeover
The acquisition of control over a corporation through the purchase of a substantial number of the voting shares of the corporation.
Self-Tender
An offer by a company to purchase its own shares from shareholders, typically as a strategy to increase share value or fend off unwanted takeover attempts.
- Understand strategic defenses against takeovers, including self-tenders.
Verified Answer
TA
Tselal AbrhaJul 22, 2024
Final Answer :
True
Explanation :
A self-tender is a defensive strategy where the target company offers to buy back its own shares from the shareholders, usually at a premium, to make itself less attractive or more expensive for the acquiring company, thereby resisting the takeover.
Learning Objectives
- Understand strategic defenses against takeovers, including self-tenders.