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Management · Q256

Strategic Management

Graduate and Post Graduate · Management · question 256

Q256

Many merger discussions breakdown or are abandoned. Which of these is not a reason why?

A.
Egos can get in the way
B.
Reluctance to accept which will become number two
C.
The bid is deemed hostile leading to aggressive defense
Answer
D.
Inadequate consultation with shareholders who then intervene

Answer: Option C

Solution

Answer: Option C
Solution:
Many merger discussions breakdown or are abandoned. The bid is deemed hostile leading to aggressive defense is not a reason. A merger refers to an agreement. It is a mutually binding contract in which two companies join together to form one company.