A national airline has made an offer to acquire a smaller airline in the same...

CIMA F3 Question Answer

A national airline has made an offer to acquire a smaller airline in the same country.

Which of the following would be of most concern to the competition authorities?

After the acquisition the board propose to reduce the number of flight destinations from the country.

The board informed a major institutional shareholder about the proposed acquisition before informing other shareholders.

After the acquisition the board propose to increase prices significantly on routes where no other airlines operate.

The acquisition is likely to result in significant redundancies of staff currently working for the smaller airline.

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