A Structured Purchase of the Target's Shares in Which the Acquirer

question 65

Multiple Choice

A structured purchase of the target's shares in which the acquirer announces a public offer to buy a minimum number of shares at a specific price is called

• A) LBO
• B) tender offer
• C) exchange offer
• D) green mail

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Definitions:

Worse Off

A situation in which an individual, group, or economy is in a poorer or less advantageous position compared to a previous state or another entity.

Equitable

Characterized by fairness and impartiality; ensuring just treatment or distribution of resources without favoritism or discrimination.

Externalities

Economic side effects or by-products that affect an uninvolved third party; can be either positive or negative.

Pareto Efficient

A circumstance in resource distribution where any improvement for one individual means a disadvantage for at least another.