What is the aim of requiring the board of the offeree to disclose substance to shareholders?

The aim of requiring the board of the offeree to disclose substance to shareholders is to ensure transparency in the offer process. This transparency is crucial for shareholders, as it provides them with the necessary information to make informed decisions regarding the offer. Disclosure helps to convey the full context surrounding the offer, including the strategic rationale behind it, potential risks, and the implications for shareholder value.

By mandating disclosure, regulators aim to create a fair environment for all parties involved in the transaction. This allows shareholders not only to understand the terms of the offer but also to gauge how it aligns with their interests and long-term objectives. Transparency ultimately supports informed decision-making and helps to build trust in the market environment.

The other options do not capture the objective of shareholder disclosure. Restricting information flow would diminish transparency and could lead to misunderstandings or misinformed decisions. Complying with legal standards alone, while necessary, does not encompass the broader purpose of providing substantive information for informed shareholder engagement. Lastly, protecting the interests of the predator suggests a bias towards one party in the transaction, rather than facilitating a fair and transparent process for all involved, primarily focusing on the offeree’s shareholders.