The two step buy-out is a recent merger plot that has which of the following cha

Question

The two step buy-out is a recent merger plot that has which of the following characteristics?

A. It is negotiated in a social, rather than a business setting.
B. The acquiring firm offers to pay a very high price for the target company's stock, and a short time later announces another price which may be higher or lower.
C. The acquiring firm offers to pay a very high price for the target company's stock for a limited time only, after which it will pay a considerably lower price.
D. It forces stockholders to sell out./20

Explanation / Answer

B. The acquiring firm offers to pay a very high price for the target company's stock, and a short time later announces another price which may be higher or lower.

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