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In a typical merger or acquisition deal, which of the following parties has the ultimate authority to make the final decision on whether to accept the M&A offer? A. The CEO of the acquiring company B. The shareholders of the target company C. The board of directors of the acquiring company D. The board of directors of the target company

Question

In a typical merger or acquisition deal, which of the following parties has the ultimate authority to make the final decision on whether to accept the M&A offer? A. The CEO of the acquiring company B. The shareholders of the target company C. The board of directors of the acquiring company D. The board of directors of the target company

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Solution

B. The shareholders of the target company

In a typical merger or acquisition deal, the ultimate authority to make the final decision on whether to accept the M&A offer lies with the shareholders of the target company. This is because the shareholders are the owners of the company, and any major decisions such as a merger or acquisition would require their approval. While the CEO and the board of directors of both the acquiring and target companies play significant roles in negotiating and facilitating the deal, the final decision rests with the shareholders of the target company.

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