In a cash offering,

I. The target's shareholders share the reward and risk related to the post-merger company.
II. Financial leverage can increase if the cash is from a debt issue.
III. Investors sometimes interpret a cash offering as a signal that the acquirer's shares may be overvalued.

Explanation: I is wrong. All of risk is borne by the acquirer.

III is wrong. That would be true for a stock offering.