In a statutory merger, what happens to the target company?
AIt dissolves fully
BIt survives as a unit
CIt forms a new firm
DIt gets listed anew
Answer & Solution
Correct answer: A. It dissolves fully
In a statutory merger the acquirer survives while the target is dissolved and its assets move to the acquirer.
Keep practising Mergers Acquisitions and Corporate Restructuring
Browse all Mergers Acquisitions and Corporate Restructuring questions for CA Final, or explore more Strategicfinancialmanagement topics.
Related questions
In a management buy-in (MBI), the shares are bought bySenior LBO debt is secured and carriesWhich target suits an LBO best?Debt is cheaper than equity in an LBO since interestIn a leveraged buyout, the target's assets often serve asWhich US law requires shareholder votes on future golden parachutes?A golden parachute pays an executive onA gray knight is a bidder seen as