Corporate Finance Q10

0. A company is making a takeover bid on a rival firm and the valuators have proposed a bid at a premium of 50% to the target's share price. The company is currently owned 70% by a majority shareholder and the remaining ownership is fragmented among small shareholders. The said scenario can result in a conflict between:

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Option : C
Explanation : In the given ownership structure the controlling shareholder would have more influence than minority shareholder and can use this position to the detriment of minority shareholders.

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