Do solve it as soon as possible    Identify which statement is not correct. In a takeover bid to acquire a part or all shares in another company: Select one: a. Friendly merger reduces the chance of overpaying for target’s shares. b. Successful acquirer is likely to pay more for target’s shares in scenarios that include multiple rival bidders. c. Target company management would not accept an offer where the consideration for target’s shares exceeds the NPV of the merger. d. Hostile takeover may result in overpaying for target’s shares

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Do solve it as soon as possible 

 

Identify which statement is not correct. In a takeover bid to acquire a part or all shares in another company:

Select one:

a.

Friendly merger reduces the chance of overpaying for target’s shares.

b.

Successful acquirer is likely to pay more for target’s shares in scenarios that include multiple rival bidders.

c.

Target company management would not accept an offer where the consideration for target’s shares exceeds the NPV of the merger.

d.

Hostile takeover may result in overpaying for target’s shares.

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