Series 79 practice questionmediumDeal Protections
Which deal protection device most directly limits a target from negotiating with other potential acquirers after signing a merger agreement?
- AMatching right
- BNo-shop provision✓ Correct answer
- CBreakup fee
- DGo-shop provision
Explanation
Why B — No-shop provision
A no-shop clause restricts negotiations with other bidders, while matching rights and breakup fees do not prevent discussions. The trap is confusing the mechanisms’ effects.
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