CIMA Financial Strategy F3 Question # 57 Topic 6 Discussion

CIMA Financial Strategy F3 Question # 57 Topic 6 Discussion

F3 Exam Topic 6 Question 57 Discussion:
Question #: 57
Topic #: 6

The competition authorities are investigating the takeover of Company Z by a larger company, Company Y.

Both companies are food retailers. 

The takeover terms involve using a part cash, part share exchange means of payment.

Company Z is resisting the bid, arguing that it undervalues its business, while lobbying extensively among politicians to sway public opinion against the bidder.

 

Which of the following actions by Company Y is most likely to persuade the competition authorities to approve the acquisition?


A.

Company Y increases the cash element of its bid offer.


B.

Company Y agrees to dispose of specified outlets which geographically overlap those of Company Z.


C.

Company Y guarantees to preserve employment at its cental distribution depot.


D.

Company Y undertakes to pass on any cost savings to customers.


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