Series 79 practice questionmediumDeal Protections
A merger agreement contains a right for the initial acquirer to match any unsolicited superior proposal received by the target. What is this provision called?
- AGo-shop clause
- BBreakup fee
- CNo-shop clause
- DMatching right✓ Correct answer
Explanation
Why D — Matching right
A matching right allows the initial acquirer to match superior bids, helping them retain the deal. Mistaking this for a no-shop or go-shop clause could lead to incorrect advice on deal strategy.
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