Which of the Following Statements Is FALSE

question 33

Multiple Choice

Which of the following statements is FALSE?

• A)SEC rules make it difficult for investors to buy much more than about 10% of a firm in secret.After an acquirer acquires such an initial stake in the target,called a toehold,they would have to make their intentions public by informing investors of his large stake.
• B)With the availability of both the freezeout merger and the leveraged buyout as acquisition strategies,most of the value added accrues to the acquiring shareholders.
• C)The laws on tender offers allow the acquiring company to freeze existing shareholders out of the gains from merging by forcing non-tendering shareholders to sell their shares for the tender offer price.
• D)Premiums in LBO transactions are often quite substantial-while they can avoid the free-rider problem acquirers must still get board approval to overcome other defenses such as poison pills,as well as outbid other potential acquirers.

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Definitions:

Aldous Huxley

An English writer and philosopher best known for his novel "Brave New World," exploring themes of dystopia, technology, and societal change.

Brave New World

A dystopian novel by Aldous Huxley, which explores themes of technological advancements, centralized control, and the loss of individuality.

International Council

A global organization or body consisting of members from different countries, formed to address mutual concerns, promote international cooperation, and facilitate dialogue on global issues.

Rerum Novarum

An encyclical issued by Pope Leo XIII in 1891, addressing the condition of the working classes, advocating for workers' rights, and condemning both socialism and unfettered capitalism.