Unformatted text preview: belongs to the corporation. 5. Under the duty of care, managers must make honest, informed decisions that have a rational business purpose. 6. The Williams Act regulates the activities of a bidder in a tender offer for stock in a publicly traded corporation. 7. Under common law, shareholder welfare must be the board’s primary concern when establishing takeover defenses. If it is clear that the company will ultimately be sold, the board must auction the company to the highest bidder; it cannot give preferential treatment to a lower bidder. 8. Many states have passed antitakeover statutes that render hostile takeovers more difficult for the bidder....
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- Spring '10
- takeover, Tender offer, business judgment rule