Series 79 practice questionmediumSchedule TO and Schedule 14D-9
The board of directors of a target company has received an unsolicited tender offer. Within how many business days must the target file a Schedule 14D-9 containing its recommendation to shareholders?
- A5 business days
- B30 calendar days
- C20 business days
- D10 business days✓ Correct answer
Explanation
Why D — 10 business days
Under SEC Rule 14d-9, the target company's board must file a Schedule 14D-9 (Solicitation/Recommendation Statement) within 10 business days after the commencement of the tender offer. This filing communicates the board's recommendation to shareholders regarding the offer: accept, reject, express no opinion, or state that it is unable to take a position. The board typically engages a financial advisor to provide a fairness opinion to support its recommendation.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 477+ Series 79 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Related M&A, Tender Offers & Restructuring questions
- Which of the following statements about Schedule 14D-9 is correct?
- A Schedule TO is filed by which party in a tender offer?
- During a hostile tender offer, the target company's board issues a Schedule 14D-9 recommending that shareholders reject…
- A bidder commences a tender offer at $45 per share for all outstanding shares of TargetCo. After 15 business days, the…