What must happen with respect to cash offers when a mandatory bid is made?

When a mandatory bid is made, it is required that cash offers are accompanied by a cash alternative. This necessity ensures that shareholders have a fair opportunity to sell their shares at a price equivalent to that received by the majority shareholders or bidders. The rationale behind this requirement is to protect minority investors and ensure they are treated equitably.

In cases of mandatory bids, where a party acquires a certain percentage of a company’s shares, it is essential to provide a cash alternative to ensure that all shareholders have the option to receive cash for their shares, thereby avoiding any potential disadvantage to those who may want liquidity or who wish to exit their investment in the company. This regulation is in place to facilitate transparency and fairness in the market, reflecting the regulatory frameworks established to instill confidence among all shareholders.

The other options do not align with the regulatory requirements governing mandatory bids. For example, ignoring cash offers would not protect shareholders' rights, and requiring unanimous shareholder consent would be impractical in most situations, as it could impede the bid process significantly. Moreover, stipulating that offers are only valid for 30 days does not reflect the essential nature of cash alternatives in such transactions. Thus, the requirement for cash alternatives is in place to safeguard shareholder interests and