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Why do companies who want to acquire a target company, go for tender offer & want to pay a premium to the existing shareholder, when they can just buy the required quantity without premium FROM the open market?

1.27K viewsMay 25, 2024EconomicsOther
Question100.55K May 24, 2024 0 Comments

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In: Economics

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Anonymous Posted May 24, 2024 0 Comments

Legal requirement.

If they acquired more than 5% then they have to declare it, at which point everyone will demand higher prices.

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