[Battle for the Board] the Board of Directors of InfoHub

question 40

Multiple Choice

[Battle for the Board] The Board of Directors of InfoHub, an internet service provider, contains 9 directors. Two of the directors, Jude and Rostan, decide they want to replace several of the directors with individuals who support their position and then take over the Board and control the company. Jude thinks it's a long shot, but Rostan tells him they could do it because Rostan has gradually been accumulating shares and they can get a majority of proxies on their side. Jude says the proxies are not important, because it's the shareholders that vote for the members of the board but it is difficult for them to find the names of shareholders. Rostan tells him not to worry, because he will get the shareholder list and focus only a few key shareholders, then get their proxies on his side before the next shareholder meeting.
-What type of takeover is contemplated in this situation?

• A) Beachhead offer
• B) Exchange tender offer.
• C) Cash tender offer.
• D) Beachhead acquisition.
• E) Takeover acquisition.

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Definitions:

Competition Approach

A business strategy that focuses on outperforming competitors by developing a competitive advantage through factors like cost, product, or service.

Assertiveness

The quality of being self-assured and confident without being aggressive, in the context of communicating one's needs and opinions.

Cooperation

The act of working together towards a common goal or interest.

Secure

The condition of being protected from or not exposed to danger, risk, or anxiety; having a sense of safety.