KN Markets Has Decided to Acquire a Controlling Interest in BJ's

question 64

Multiple Choice

KN Markets has decided to acquire a controlling interest in BJ's by purchasing shares of BJ stock in the public markets. Which one of these statements correctly applies to this acquisition?

• A) This method of acquisition guarantees a quick and efficient merger.
• B) KN Markets is limited by law to obtaining a maximum of 49 percent of the shares prior to obtaining the approval of BJ management.
• C) The purchase of publicly traded shares may be more expensive than an outright merger.
• D) Once KN Markets obtains 80 percent of BJ's shares, the remaining BJ shareholders will be required to sell their shares to KN.
• E) KN Markets must obtain the approval of BJ's board of directors before purchasing shares.

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