Major stake of shares and is threatening to exert influence

Assignment Help Financial Management

Reference no: EM13846293

Suppose a firm finds itself as the target of a possible hostile takeover. An outsider investor has acquired a major stake of shares and is threatening to exert influence on the board.

If the firm wants to influence the hostile bidder to leave it alone, which of the following methods could be an effective way of doing so?

1. Direct negotiation

2. Tender offer

3. Auction

4. Open-market transaction

Reference no: EM13846293

Questions Cloud

Comprehensive problems-compute incremental return on sales : Proposal #1 would extend trade credit to some customers that previously have been denied credit because they were considered poor risks. Compute the incremental Return on Sales if these new credit customers are accepted: Would establish local collect..

What determines the price of financial instruments : What determines the price of financial instruments? Which are riskier, capital market instruments or money market instruments? Why? What are the four major functions of the Federal Reserve System? What are the main responsibilities of the FOMC?

Perpetuity is constant stream of cash flows : Perpetuity is a constant stream of cash flows without end. Why doesn’t it have an infinite value? Under what cases can we easily calculate its value?

In tax less world with no brokerage coasts : In a tax less world with no brokerage coasts, repurchases and dividends have the same effect on shareholder wealth. In the real world, however, repurchases provide more preferable tax treatment than dividends to ordinary investors. Is it necessary fo..

Major stake of shares and is threatening to exert influence : Suppose a firm finds itself as the target of a possible hostile takeover. An outsider investor has acquired a major stake of shares and is threatening to exert influence on the board.

Invest in business facility improvement-pay interest expense : A firm can make any form of distribution to its shareholders using the free cash flow tht it generates. The underlying objective is to maximize shareholder wealth by increasing the firm's value. Invest in business facility improvement. Pay interest e..

Actual implementation of their distribution policy : Which of the following help firms determine the actual implementation of their distribution policy? check all that apply?

What was the cash flow to stockholders for the year : The 2014 balance sheet of Sugarpova’s Tennis Shop, Inc., showed $580,000 in the common stock account and $3.5 million in the additional paid-in surplus account. The 2015 balance sheet showed $620,000 and $3.9 million in the same two accounts, respect..

Efficient provision of a public good occurs : Efficient provision of a public good occurs at the level at which each member of society places the same value on the last unit. If a good is non rival and excludable, it will never be produced by the private sector. A road is non rival because one p..

User Account

All Pages