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CIMAPRA19-F03-1 Exam - Topic 6 Question 50 Discussion

The competition authorities are investigating the takeover of Company Z by a larger company, Company Y.Both companies are food retailers.The takeoverterms involve using a part cash, part share exchange means of payment.CompanyZ is resisting the bid, arguing that it undervalues its business, while lobbying extensively among politicians to sway publicopinion against the bidder.Which of the following actions by Company Y is most likely topersuade the competition authorities to approve the acquisition?
B) Company Yagrees to dispose of specified outlets which geographically overlap those of Company Z.
A) Company Y increases the cash element of its bid offer.
C) Company Y guarantees to preserve employment at its cental distribution depot.
D) Company Y undertakes to pass on any cost savings to customers.

CIMAPRA19-F03-1 Exam - Topic 6 Question 50 Discussion

Actual exam question for CIMA's CIMAPRA19-F03-1 exam
Question #: 50
Topic #: 6
[All CIMAPRA19-F03-1 Questions]

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

Both companies are food retailers.

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

CompanyZ is resisting the bid, arguing that it undervalues its business, while lobbying extensively among politicians to sway publicopinion against the bidder.

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

Show Suggested Answer Hide Answer
Suggested Answer: B

by Kris at May 05, 2022, 04:58 AM

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Nguyet
10 months ago
Wait, how does a share exchange even work in this context?
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Quentin
10 months ago
I think passing on cost savings to customers is a solid move!
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Charlene
11 months ago
Really? I doubt that just preserving jobs will sway the authorities.
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Nobuko
11 months ago
Disposing of overlapping outlets makes sense to avoid monopoly concerns.
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Mari
11 months ago
Company Y should definitely increase the cash offer!
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Junita
11 months ago
This question seems straightforward, but I want to make sure I understand the difference between the two approaches before selecting an answer.
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Pa
11 months ago
I'm a little confused by the 45% markup over wholesale. Does that mean the retail price is 145% of the wholesale price? Or is it something else? I want to make sure I have the right approach before I start solving this.
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Francine
11 months ago
Hmm, I'm not entirely sure about this one. The options seem a bit technical, so I'll need to draw on my knowledge of desktop memory and storage systems to figure this out.
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