Target Managements That Resist Mergers Usually Claim the Offer Is

question 41

Multiple Choice

Target managements that resist mergers usually claim the offer is not in the best interest of stockholders because the price offered is too low.  However, they may be:

• A)trying to get the acquirer to raise the offer.
• B)trying to get the acquirer to offer them bonuses to support the proposal.
• C)concerned about their jobs because target managements usually lose power after mergers.
• D)concerned that bondholders are being frozen out of the deal.

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Definitions:

Rent-seeking Behavior

The practice of seeking to increase one's share of existing wealth without creating new wealth, often through lobbying or exploiting monopolies.

Government Functions

These are activities or operations carried out by a government to maintain order, provide public services, and enforce legal codes.

Domestically Produced

Refers to goods and services that are created or manufactured within a country's borders.

Monetary Policy

The process by which a central authority (most commonly a central bank) manages the supply of money in an economy, typically aiming to control inflation, promote economic growth, and reduce unemployment.