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LOS e: Contrast merger transaction characteristics by form of acquisition, method of payment, and attitude of target management.
Q1. During negotiations over the method of payment to be made by the acquirer, which of the following issues would least likely be considered?
A) The relative valuations of the firms involved.
B) The distribution of the risk and reward from the transaction.
C) The relative tax-effect on the acquiring firm’s shareholders.
Q2. When the attitude of the target firm’s management is unfriendly with regard to the proposed merger, which of the following statements is most accurate? The offer is said to be:
A) hostile, and the acquirer can resort to a tender offer to the target firm’s shareholders, or a proxy battle to replace members of the target’s board of directors.
B) antagonistic, and the acquirer can resort to a proxy battle to persuade the target firm’s shareholders, or a tender offer to replace members of the target’s board of directors.
C) hostile, and the acquirer can resort to a proxy battle to persuade the target firm’s shareholders, or a tender offer to replace members of the target’s board of directors.
Q3. When a merger occurs, the two main forms for the acquisition are:
A) asset purchase or liability assumption.
B) stock purchase or asset purchase.
C) asset purchase or subsidiary carve-out.
Q4. What form of acquisition is most likely to be associated with a hostile takeover, and which defense is most likely to be employed by the target’s management to fend off the unwanted offer?
A) Stock purchase and poison pill.
B) Stock purchase and greenmail.
C) Asset purchase and greenmail.
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发表于 2009-3-3 15:54
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