Which scenario describes a hostile takeover bid for a listed target company?
Question and options
Which scenario describes a hostile takeover bid for a listed target company?
An acquirer seeks control despite opposition from the target's board
An investor buys a small stake with no intention of seeking control
The promoters raise their stake through permitted creeping acquisitions
The target's board supports an agreed acquisition of control
Answer and explanation
Correct answer: A - An acquirer seeks control despite opposition from the target's board
A takeover bid is hostile when the acquirer pursues control of the target without, or against, the support of its board and management. An agreed acquisition is friendly, creeping acquisitions by promoters consolidate existing control, and a small passive stake is not a bid for control at all.
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