Recommend at too low a price and the deal gets rejected outright by shareholders
Recommend at a level that shareholders don’t like so shareholders force a bump
Recommend/ welcome at a price but open door to auction process
Reject publicly but leave door open to recommend a higher offer
Reject outright without shareholders’ knowledge and risk later shareholder criticism if it becomes public
Valuation – potential consequences of different responses by directors in receipt of a takeover approach
![](https://media-s3-us-east-1.ceros.com/hsf/images/2024/01/16/8be555dc40b9c5a1e01fa1ec84b921c4/processed-svg-p-11.svg)