Series 79: Chapter 13 Practice Questions

Chapter 13 Practice Questions

1. 1. Unless withdrawn, a tender offer must be kept open for at least:
2. A. 15 calendar days
3. B. 20 business days
4. C. 40 business days from the date the offer is first communicated to shareholders
5. D. 10 business days from the date the company files a Schedule 14D-9 or Schedule TO
6. 2. Each of the following is considered an unlawful tender offer practice except:
7. A. Extending the length of time a tender offer is open without giving public notice of the extension
8. B. Failing to pay the offered consideration or returning tendered securities promptly after the tender offer ends
9. C. Extending the length of time a tender offer is open without disclosing the approximate number of shares tendered to date
10. D. Making a tender offer for publicly traded shares for a price that is less than 95% of the market price at opening on the day the tender offer is made
11. 3. Y Corporation has 30 million shares issued and outstanding. Company X makes a tender offer for 21 million shares of Y Corporation. Under those circumstances, which of the following is not true?
12. A. Y Corporation’s management must recommend acceptance or rejection of the tender offer within 10 days of the offe