A management buy-out is proposed in a company in which the management already has ESOPs mounting to 12%

Accounting Nov 20, 2020

A management buy-out is proposed in a company in which the management already has ESOPs mounting to 12%. They now propose to acquire the promoters’ stake of 24%. The investment banker states that this would trigger the Takeover Code. The management maintains that the buy-out is only for 24% and the rest are ESOPs. Who is right?

(a) The management (b) The investment banker