For the antitrust agencies to consider a “failing firm” defense for a merger, what conditions would...

For the antitrust agencies to consider a “failing firm” defense for a merger, what conditions would need to be present?

a. The failing firm is less able to compete effectively

b. The failing firm must show that it can’t meet its financial obligations

c. The failing firm must show that it has obtained multiple offers from possible buyers

d. The failing firm must be at risk of imminent failure

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Expert Solution

Answer B) The failing firm must show that it can’t meet its financial obligations

Explanation- In order to antitrust agencies to consider a “failing firm” defense for a merger it needs to demonstrate that it can’t meet its financial obligations. Apart from this it also have to show that the firms is not able to itself under Chapter 11 of Bankruptcy Act and inability to obtain alternate offers from buyers.

Rahul Sunny answered 2 years ago

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