CFA Practice Question

There are 86 practice questions for this study session.

CFA Practice Question

A target company may use debt to purchase shares back from open market. After the action only a small portion of outstanding share are still in public hands. The takeover defense technique is known as:
A. LBO
B. Greenmail.
C. Leveraged recapitalization.
Explanation: In the case of MBO or LBO, all shares are bought back and the target company effectively becomes a privately held company.

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jmcarr02 MBO: management buyout
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