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ADC is planning to acquire DEF in order to benefit from the expertise of DEF's...

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ADC is planning to acquire DEF in order to benefit from the expertise of DEF's owner ‘managers Both are Listed companies. ADC is trying to decide whether to offer cash or shares in consideration for DEF's shares.

Which THREE of the following are advantages to ABC of offering shares to acquire CEF?

A.

It shares tie benefits of future growth with the DCT shareholder.

B.

It dilutes ownership in ABC.

C.

It incentivises DEF to continue creating value for the combined group

D.

It results in a tax saving for ABC.

E.

The risk of poor future performance of the acquisition is shared with the DEF company shareholder.

F.

It preserves liquidity

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