The Two-Step Buyout Is a Recent Merger Ploy That Has

question 16

Multiple Choice

The two-step buyout is a recent merger ploy that has which of the following characteristics?

• A) It is negotiated in a social, rather than a business setting.
• B) The acquiring firm offers to pay a very high price for the target company's stock, and a short time later announces another price that may be higher or lower.
• C) The acquiring firm offers to pay a very high price for the target company's stock for a limited time only, after which it will pay a lower price.
• D) It forces stockholders to sell out.