BS Law Exam IIQ8 - shareholders These loans are often...

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BS Law Exam II, Q 8 James Tilley BAA 3210 First there is an act known as a tender offer. This is when an offer is made by the target corporation when the shareholders disagree with the selling or moving of stock. This allows each individual shareholder on deciding to sell or not to share their shares to the tender offeror. The tender board of directors approves or disapproves the offer. The shareholder has no vote in the matter. Another option is a leveraged buyout. This is the process of bank loans to buy out the
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Unformatted text preview: shareholders. These loans are often called bridge loans. This will allow Donna and the other shareholder the flexibility to splint the share and add shareholders. A way of raising additional cash is sell junk bonds. These bonds pay a higher rate but come at a higher risk. Another way of raising additional funds is share exchanges. This exchange allows each corporation to retain their legal existence, while obtaining funds from the parent corporation....
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