Question

In an acquisition where ABC Corp is the acquiring company, and the deal is contingent on majority shareholder approval, which company is typically involved in preparing the registration statement and prospectus?

A) ABC Corp, the acquiring company.
B) XYZ Corp, the target company.
C) A third-party law firm.
D) The majority shareholders themselves.

Answer 1

ABC Corp, the acquiring company, is responsible for preparing the registration statement and prospectus in an acquisition scenario requiring majority shareholder approval.

Step-by-step explanation:

In the context of a corporate acquisition, where ABC Corp is the acquiring company and the deal requires the approval of the majority shareholders, it is typically the responsibility of the acquiring company to prepare the registration statement and prospectus. Therefore, the answer is A) ABC Corp, the acquiring company. The registration statement and prospectus are essential documents that contain detailed information about the transaction, the companies involved, and the securities being offered to the shareholders. These documents must be filed with regulatory bodies such as the Securities and Exchange Commission (SEC) and are used to provide shareholders with the information they need to make an informed decision regarding the acquisition.