Series 79 practice questioneasySchedule TO and Schedule 14D-9
Upon receiving a tender offer, what is the primary obligation of a public target company’s board under SEC rules?
- ATo accept the offer within five business days
- BTo take no action until after the offer expires
- CTo immediately file a Schedule TO
- DTo file a Schedule 14D-9 with their recommendation within 10 business days✓ Correct answer
Explanation
Why D — To file a Schedule 14D-9 with their recommendation within 10 business days
The subject company must publish, send or give its recommendation or other permitted position no later than 10 business days after commencement and file Schedule 14D-9.
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