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Homework answers / question archive / In a de-listing offer of a company, the principal shareholders succeed in procuring 98% of the shares
In a de-listing offer of a company, the principal shareholders succeed in procuring 98% of the shares. The residual 2% is in the hands of some public shareholders who have not responded to the offer. The principal shareholders now have the following alternatives for a squeeze out:
(a) They can compel the residual shareholders to sell at the discovered price.
(b) They can offer to buy them out upto 1 year from the close of the offer at the discovered price.
(c) They can buy them out through a negotiated price.
(d) They can compel them to sell through a court proceeding.
(e) They can de-register them as shareholders by striking off their name from the register of members.
(f) They can make another de-listing offer for them.
(g) They can cancel the offer and go for a new offer.
(h) They can increase the price of the offer and wait for them to surrender their shares.