Exam 29: Corporate Acquisitions and Multinational Corporations

A subsidiary corporation operating in a foreign country is organized under the laws of the foreign country.

Synesia Infotech acquires Nialand Microchips by absorbing the company and acquiring its title to property.As a result,Nialand ceases to exist as a legal company.This combination is an example of a ________.

Federal proxy rules require proxies to be confidential documents.

The Williams Act is an amendment to the Securities Exchange Act of 1934 made in 1968 that specifically regulates tender offers.

Share exchanges are used to create holding company arrangements.

A ________ is usually made when a corporation solicits proxies from its stockholders.

Is a hostile tender offer an ethical course of action for a company?

Luminax Electric,in its bid to take over Greenwave Electric,buys a block of stock from Greenwave before making a tender offer.After a month,Luminax decides to give up its tender offer and agrees not to purchase any further shares if Greenwave agrees to buy back the stock at a premium over fair market value.Luminax's agreement is an example of a(n)________ agreement.

Which of the following is true of a tender offer?

The purchase by a target corporation of its stock from an actual or perceived tender offeror at a premium is defined as a poison pill.

A ________ is made by an acquirer directly to a target corporation's shareholder,without the knowledge of the board of directors,in an effort to acquire the target corporation.

The agreement of the tender offeror to abandon its tender offer and not purchase any additional stock is called a standstill agreement.

The insurgent shareholders of a corporation support the current or incumbent directors of a corporation.

Archman Stationeries is looking to takeover Linegraph Pens.In its bid to make a tender offer,it begins acquiring stock from Linegraph.While purchasing the shares,Archman realizes that the shares tendered are far too many in number.However,it illicitly does not purchase the shares on a pro rata basis.This is a violation as defined by the ________.

Shareholder resolutions are usually made when the corporation is soliciting proxies from its shareholders.

The ________ shareholders offer their own slate of proposed directors to replace the current directors.

A short-form merger between a parent corporation and its subsidiary only requires the approval of ________.

A ________ is a valuable asset of a target corporation that the tender offeror particularly wants to acquire in a tender offer.

A(n)________ refers to the purchase by a target corporation of its stock from an actual or perceived tender offeror at a premium.

Penta Timber plans on taking over Treerings Furniture.Penta acquires a block of stock in Treerings and then makes a tender offer to Treerings' shareholders.After a week,Penta decides to give up the tender offer if Treerings agrees to buy back the stock at a 5% premium over the fair market value.This payment is an example of a(n)________.