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Series 79: M&A, Tender Offers & Restructuring
Series 79 practice questionmediumGoing-Private Transactions

In a Rule 13e-3 going-private transaction involving affiliates, which disclosure is specifically required in the disclosure document?

  1. AOnly a description of the transaction structure
  2. BA general description of management's plans
  3. CA detailed statement about the fairness of the transaction to unaffiliated holders✓ Correct answer
  4. DA statement of the acquirer’s historical stock price
Explanation

Why CA detailed statement about the fairness of the transaction to unaffiliated holders

Rule 13e-3 requires a thorough fairness discussion for unaffiliated shareholders. Trap answers neglect the unique fairness disclosure requirement, a key regulatory focus.

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