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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Mergers
Sir in these Questions do we have to write in a clear cut way that target co shareholders will select which offer i.e cash or shares or mix offer? In the same way do we have to write in a clear cut way that acquirer co shareholders will select which offer i.e cash or shares or mix offer?
If yes then which offer is selected by target co shareholders, and which offer is selected by acquirer co shareholders?
Much depends on what the question specifically requires, and on the information given.
However generally you should state which of the offers the target company shareholders are more likely to prefer, and similarly which of the methods the shareholders of the acquiring company are likely to prefer.
Rarely can you say that there is a clear cut preference, but you can state the financial impact and the factors that are likely to influence their preference.