A(n) ________________ occurs when the management of the target company purchases a controlling interest in that company and the company incurs a significant amount of debt as a result. a. greenmail b. statutory merger c. poison pill d. leveraged buyout
A(n) ________________ occurs when the management of the target company purchases a controlling interest in that company and the company incurs a significant amount of debt as a result.
|
a. |
greenmail |
|
b. |
statutory merger |
|
c. |
poison pill |
|
d. |
leveraged buyout |
A. Greenmail
Greenmail is the practice of purchasing or buying a number of shares of other company in order to challenge it's leadership, so that the company proposes to buyback it's share at premium.
B. Statutory merger
It is the usual type of mergers that can be seen. To state, it is the merger between two companies or corporation in which one of the companies continues to exist and other ceases.
C. Poision Pill
The Poision pill is the technique used by the companies or corporation to state or represent that it's not available for acquiring. In other words discouraging the acquisition proposal of other companies. Sometimes it's also means as technique stating to change the acquisition terms and conditions.
D. Leveraged Buyout
Leveraged buyout can be refers as the acquisition or purchase of interest in another company by raising and using a significant amount of borrowed funds to meet it's acquisition cost.
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