Question

What is meant by a conditional offer by an acquirer?

A Where there is a minimum level of acceptance stipulated Correct Answer Incorrect Answer
B Where there is a minimum level of offer price stipulated Correct Answer Incorrect Answer
C Where there is a maximum level of acceptance stipulated Correct Answer Incorrect Answer
D Where there is a maximum level of offer price stipulated Correct Answer Incorrect Answer
E None of the above Correct Answer Incorrect Answer

Solution

An offer in which the acquirer has stipulated a minimum level of acceptance is known as a conditional offer. Minimum level of acceptance implies minimum number of shares which the acquirer desires under the said conditional offer. If the number of shares validly tendered in the conditional offer, are less than the minimum level of acceptance stipulated by the acquirer, then the acquirer is not bound to accept any shares under the offer. In a conditional offer, if the minimum level of acceptance is not reached, the acquirer shall not acquire any shares in the target company under the open offer or the Share Purchase Agreement which has triggered the open offer.

Practice Next
×
×