The Two Step Buy-Out Is a Recent Merger Ploy That

Multiple Choice

The two step buy-out is a recent merger ploy that has which of the following characteristics?

A) It is negotiated in a social, rather than a business setting.
B) The acquiring firm offers to pay a very high price for the target company's stock, and a short time later announces another price which may be higher or lower.
C) The acquiring firm offers to pay a very high price for the target company's stock for a limited time only, after which it will pay a considerably lower price.
D) It forces stockholders to sell out.