Pym Particles, Inc. learns it will be the subject of a private tender offer. A tender offer
Question:
Pym Particles, Inc. learns it will be the subject of a private tender offer. A tender offer is when an investor proposes buying shares from every shareholder of a publicly-traded company for a certain price at a certain time. The investor normally offers a higher price per share than the company’s stock price, providing shareholders a greater incentive to sell their shares. For example, a stock’s current price is $10 per share. An investor wanting to take over the company issues a tender offer for $12 per share on the condition he acquires at least 51% of the shares.
Management disapproves of this private tender offer because it threatens their jobs. Ms. Hope Pym, CFO, orders Mr. Scott Lang, a certified management accountant (CMA), to make non-GAAP changes to several accounting policies and practices before the tender offer is made public so as to make the company a less-attractive target. Which standards of ethical conduct for management accountants were violated? Why?
Employment Law new challenges in the business environment
ISBN: 978-0536067036
5th edition
Authors: John Jude Moran