A controlling shareholder holding 70% of a public company proposes to acquire the remaining 30% at a premium to the current market price. Which of the following regulatory requirements applies?

Why C — The transaction is subject to Rule 13e-3 going-private requirements and enhanced fairness disclosure

When a controlling shareholder takes a company private by acquiring the remaining minority shares, the transaction is subject to Rule 13e-3 because the affiliate is causing the company's equity securities to be deregistered. The controlling shareholder must file a Schedule 13E-3 with enhanced disclosure about the fairness of the transaction to unaffiliated shareholders. Under Delaware law, the transaction may also be subject to entire fairness review unless structured with both a special committee and majority-of-the-minority shareholder approval.