The Hostile Takeover Self-Quiz

 

 

 

 

 

 

 

BuyEm, Inc. is a company engaged in the hostile takeover business. Under which of the following circumstances would BuyEm be required to file a Form 13-D?
Choice 1 A merger transaction where the buyer already owns 90% of the firm.
Choice 2 A shareholder-approved transaction where a hostile bidder is taking over.
Choice 3 A transaction where a bidder has acquired over a certain percentage of the frim
Choice 4 A transaction where a selling company has placed itself "in play "
Which of the following is the term used to describe what happens when a board, facing a hostile takeover, seeks an alternative bidder for the company?
Choice 1 White knight.
Choice 2 In play.
Choice 3 Bear hug.
Choice 4 Poison pill.
OhNo Co. is facing a hostile offer from a buyer. If OhNo is “in the hands of the arbs,” the company is said to be:
Choice 1 acquired.
Choice 2 the target of a hostile transaction.
Choice 3 a likely bankruptcy candidate at the end of a merger.
Choice 4 in play in the market.
The reason that hostile takeovers are no longer so common is that:
Choice 1 the media was very critical of the actions of many hostile buyers.
Choice 2 it is sometimes difficult to operate a firm without its old management.
Choice 3 most of the better targets for hostile takeovers were already bought.
Choice 4 All of the above.
How might shareholders feel when faced with the choice between a hostile buyer’s 13-D plan for a company and a plan offered by management suggesting that it will undertake largely the same changes?
Choice 1 Angry, asking why management has not done its plan before.
Choice 2 Happy, because management now has a better chance of winning.
Choice 3 Confused, because both plans purport to reach the same ends.
Choice 4 Frustrated, if they had already favored the hostile buyer's offer.
N is a small, close company. M and O are large public companies. P is a small public company. A “Bear hug” would be most likely in which of the following situations?
Choice 1 N is buying M with money it has obtained through wealthy financiers.
Choice 2 O is acquiring M through operating cash flows.
Choice 3 O is purchasing P to obtain its assets.
Choice 4 N is buying P.

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