Answer (A) is correct . A leveraged buyout (LBO) entails the company going private. A small group of investors, usually including senior management, purchases the publicly owned stock. The stock is then delisted because it will no longer be traded. Thus, a LBO competes with a hostile tender offer as an alternative.
Answer (B) is incorrect because An acquisition is the purchase of all of another firm’s assets or a controlling interest in its stock.
Answer (C) is incorrect because A conglomerate merger is a combination of two unrelated firms in different industries.
Answer (D) is incorrect because A Saturday night special is direct solicitation of shareholders through advertisements or general mailing.
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