Sally Corporation offers to buy out Arco Corp. by paying $67…
Sally Corporation offers to buy out Arco Corp. by paying $67 per share. Billy Corporation, who also wants to buy Arco offers to pay $70 per share. When the bidding process is finally over, Sally Corporation has offered $84 per share and Billy Corporation has offered to pay $90 per share. Arco agrees to sell to Sally Corporation on grounds that, all things considered, the takeover by Sally Corporation would be better for the business. Billy Corporation claims that Arco should have sold the company to it since it was the highest bidder. Is Billy Corporation correct?