Series 79 practice questionmediumSchedule TO and Schedule 14D-9
Which party is required to make a prompt disclosure if it amends or withdraws its recommendation to shareholders during a tender offer?
- AThe acquirer
- BThe target company✓ Correct answer
- CThe SEC
- DThe largest shareholder
Explanation
Why B — The target company
The target company must promptly disclose any change in its recommendation via an amendment to Schedule 14D-9. Believing this duty falls to the acquirer is a frequent mistake.
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