As Is the Case with Most Mergers What Happened to Target

question 13

Multiple Choice

As is the case with most mergers what happened to target firm Gillette's stock and acquiring form P&G's stock on the day their merger was announced?

• A)Both stocks rose
• B)Both stocks dropped
• C)Gillette's stock rose and P&G's stock fell
• D)P&G's stock rose and Gillette's stock fell
• E)P&G's stock fell and Gillette's stock split

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Definitions:

Rescission

The process of formally terminating a contract, returning all involved parties to their pre-contractual state, often due to mistakes, fraud, or misrepresentation.

Punitive Damages

Compensation awarded to a plaintiff beyond actual damages, intended to punish the defendant for particularly harmful actions and deter similar future conduct.

Misrepresents

The act of providing false, misleading, or incorrect information about a material fact, intentionally or otherwise.

Tort of Deceit

A legal claim arising from intentionally misleading or deceiving another, causing harm or loss.