Series 79 practice questionmediumTender Offers
If a bidder materially increases or decreases the percentage of securities sought or the consideration offered in a tender offer, what is a likely consequence?
- AThe offer can close immediately if the bidder prefers
- BThe bidder may stop filing tender offer materials
- CAll shareholders lose withdrawal rights
- DThe tender offer generally must remain open for additional time so shareholders can evaluate the change✓ Correct answer
Explanation
Why D — The tender offer generally must remain open for additional time so shareholders can evaluate the change
The tender offer generally must remain open for additional time so shareholders can evaluate the change Material changes in a tender offer require procedural protections, including additional time for shareholder consideration. The rules are intended to ensure informed and fair decision-making by investors.
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