A Large Amount of Trading Following a Hostile Tender Offer

question 84

Multiple Choice

A large amount of trading following a hostile tender offer is a good sign for the acquirer because:

• A) The shares are moving from regular investors into the hands of arbitrageurs.
• B) A competing offer is likely.
• C) The acquirer will pay a lower premium for the shares.
• D) A large amount of trading is a bad sign for the acquirer.