Which of the following statements is most CORRECT?
a. If there are no benefits to be gained from a merger, the acquiring company will call off the merger.
b. Acquiring firms signal that their stock is undervalued if they use their stock to fund the acquisition.
c. A company that produces beach balls merges with a company that manages cleaning services, this is an example of a horizontal merger.
d. A defensive merger is one where the firm's decide to merge to avoid or lessen the possibility of being acquired through a hostile takeover.