CFA Practice Question

There are 86 practice questions for this study session.

CFA Practice Question

If the target company decides to buy back all its shares from its acquirer, it is called:
A. Greenmail.
B. LBO
C. White squire.
Explanation: It is essentially a payoff to the potential acquirer to terminate the hostile takeover attempt.

User Contributed Comments 5

User Comment
Rotigga Greenmail is not to be confused with LBO (Lunatic Buying Operation). LBO is when a firm uses debt to buy ALL outstanding shares.
krisscfa I think LBO is Leveraged BuyOut
chris54321 LBO stands for legendary buying opportunity
somk LBO is sort of LBGT.
challenge11 lol
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