For a hostile takeover to succeed, the acquirer must appeal to the target shareholders; this is usually done through ________.

Question

BlackTom AI · Accepted Answer

Hostile takeovers bypass the target firm's management and appeal directly to shareholders, typically by a tender offer or a proxy fight.

1) Relevant knowledge points and concepts
- Hostile takeover: an acquisition attempt opposed by the target company's board/management.
- Shareholders vs. board: shareholders own the company and can accept an offer or elect a different board; management can block transactions unless shareholders act.
- Tender offer: the acquirer offers to buy shares from shareholders at a premium directly, often contingent on obtaining a specified percentage of shares.
- Proxy fight (proxy contest): the acquirer solicits shareholder proxies to replace the incumbent board with directors who will approve the acquisition.

2) Step-by-step reasoning
- A hostile bidder cannot win the board’s cooperation, so the only route to consummate a deal is to persuade shareholders who vote on major corporate actions or who can sell their shares.
- In a tender offer, the bidder announces a price and terms, and shareholders can tender (sell) their shares. If enough shareholders tender, the bidder gains control.
- In a proxy fight, the bidder circulates proxy materials to win votes to elect new directors who will approve the sale; success gives the bidder board-level authority to complete the transaction.

3) Calculations
- No numerical calculations are required for this conceptual question.

4) Why the correct answer is correct
- Both mechanisms directly target shareholders’ rights (voting and share disposition), which is exactly what a hostile acquirer must do when management opposes the deal.

5) Why other approaches are not the standard hostile methods
- Negotiated mergers involve management consent and are “friendly.” Open-market purchases (“creeping” acquisitions) can build stake but may not by themselves win control quickly; litigation or regulatory routes are ancillary, not the primary shareholder appeal mechanism.

6) Conclusion
- Therefore the correct method is “a tender offer and/or a proxy fight,” which matches the provided answer.

For a hostile takeover to succeed, the acquirer must appeal to the target shareholders; this is usually done through ________.单项选择题

类似问题

Which of the following is true about mergers?

Which of the following is NOT a reason that mergers occur that we discussed in class?

Question at position 2 A …………………..is a strategy through which two firms agree to integrate their operations on a relatively co-equal basis.mergeracquisitionpartnershipnone of the above

One advantage of acquisitions as a means of entering foreign markets is that

To reduce the risks of failure of an acquisition, managers must

更多留学生实用工具

智能学习助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单