Questions: Chapter 3
1. In the United States when a company makes a bid directly to a target company’s
shareholders, it must file what form?
1. Schedule 14G
2. Schedule 13D
3. Schedule TO
4. It does not have to file any forms until after the deal is completed
1. In the United States which entities enforce antitrust laws?
1. Justice Department
2. Federal Trade Commission
3. Treasury Department
4. Both a and b
5. Both b and c
6. None of the above
1. In the United States when a bidder initiates an acquisition, it must file a Schedule
8K if:
1. The deal is hostile
2. Target’s size represents more than 10% of bidder’s assets
3. If requested by the FTC
4. None of the above
1. The eight factor test comes from what notable case?
1. Edgar v. Mite
2. CTS v. Dynamics
3. Wellman v. Dickinson
4. United States v. Microsoft
1. In India bidders who acquire what percent of a target’s stock must disclose that
holding within two days of attaining it.
1. 5%
2. 2%
3. 10%
4. 51%
5. Such disclosure is not required in India
1. In the United States under what rule or doctrine may targets take antitakeover
actions that are reasonable and proportional to perceived threats to shareholder
interests.
1. Revlon Duties
2. Unocal Standard
3. Microsoft Rule
4. Business Combination Standard
1. Research by Lisa Muelbroek empirically confirmed that stock price run-ups before
takeover announcements often occur. This reflects:
1. Toe Holds
2. Insider Trading
3. Anticompetitive behavior
4. None of the above
1. What transaction changed the way that Germany approached takeovers of German
companies by non-German bidders:
1. Porsche v. Volkswagen
2. Vodafone v. Mannesmann
3. UBS v. Deutsche Bank
4. None of the above
1. In the United States target shareholders must have at least what time period to
consider the original bids in cases when there is a competing tender offer?
1. 10 days
2. 5 days
3. 2 days
4. One month
1. In the United States after shareholders tender their shares, they:
1. Cannot withdraw them
2. Can withdraw them at any time
3. Can withdraw them at the end of the year
4. Must sell them to a third party
True or False
1. If less than the requested number of shares are tendered, the Williams Act requires
that bidder must purchase the amount that were tendered anyway.
True or False
1. Bidders doing a mini-tender offer must file a Schedule TO within 20 business days
from when the offer is announced.
True or False
1. In the United Kingdom bidders who acquire 30% or more of a target’s stock must
bid for the entire company.
True or False
1. The European Union has finally adopted one consistent set of takeover rules which
all members must abide by.
True or False
1. In Japan tender offers must be kept open for at least 20 calendar days but not more
than 60.
True or False
1. The Securities Law of China requires holders of 5% or more of a target’s stock to
disclose this holding within three days of attaining that position.
True or False
1. Pursuant to the Sarbanes-Oxley Act the penalties for insider trading are up to $5
million and a possible jail sentence of up to 20 years.
True or False
1. The Celler Kefauver Act required bidders and targets to file with the Justice
Department and Federal Trade Commission in advance of completing a merger or
acquisition.
True or False
1. Aktas, DeBodt, and Roll found that the greater the adverse impact on European
rivals resulting from deals by foreign companies, the more likely that regulators
would move to oppose the deal.
True or False
1. LBOs became increasingly popular during the fourth merger wave.
True or False
Answer:
