Chapter 13 Practice Questions
- 1. Unless withdrawn, a tender offer must be kept open for at least:
- A. 15 calendar days
- B. 20 business days
- C. 40 business days from the date the offer is first communicated to shareholders
- D. 10 business days from the date the company files a Schedule 14D-9 or Schedule TO
- 2. Each of the following is considered an unlawful tender offer practice except:
- A. Extending the length of time a tender offer is open without giving public notice of the extension
- B. Failing to pay the offered consideration or returning tendered securities promptly after the tender offer ends
- C. Extending the length of time a tender offer is open without disclosing the approximate number of shares tendered to date
- D. Making a tender offer for publicly traded shares for a price that is less than 95% of the market price at opening on the day the tender offer is made
- 3. Y Corporation has 30 million shares issued and outstanding. Company X makes a tender offer for 21 million shares of Y Corporation. Under those circumstances, which of the following is not true?
- A. Y Corporation’s management must recommend acceptance or rejection of the tender offer within 10 days of the offe