The Shareholders in the Acquiring Firm May Not Realize Any

Multiple Choice

The shareholders in the acquiring firm may not realize any significant gains from an acquisition. Which one of the following has not been suggested as a reason for this lack of gain?

A) Management may have priorities other than the interests of the stockholders.
B) The price paid for the target firm might equal the target firm's total value to the acquirer.
C) Any synergy produced was paid to the target firm's shareholders.
D) Target firm shares were exchanged for an equal value of acquiring firm shares.
E) Anticipated merger gains may not be fully achieved.