Question

Which of the following is a hostile takeover?

a) Buddyboy International negotiates a price of fifty cents per share with its rival, Angrygrrrrl Industries, so that Angrygrrrrl can buy them out.

b) Happy Camper Corp. arranges to buy, on the open market, a controlling interest in Sad Puppy Accessories Inc. in spite of Sad Puppy’s board voting the deal down.

c) ABC123 Company’s board of directors has agreed to a deal with It’s Greek To Me LLC’s membership for a merger.

d) Cry Me a River Water Co. has acquired Misty Falls Company in what amounts to a monopolistic coup.

Answer 1

b) Happy Camper Corp. arranges to buy, on the open market, a controlling interest in Sad Puppy Accessories Inc. in spite of Sad Puppy’s board voting the deal down. is your best choice.

Hostile take-over means that the groups are against each other, and that one group overpowers the other instead of giving a deal that both sides could work out. In this case, the Corp. bought the Inc. even when the Inc. did not want to sell for the price.

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