Comment on the following : An offer in which the acquirer has stipulated a minimum level of acceptance is known as 'conditional offer'.

An offer in which the acquirer has stipulated a minimum level of acceptance is known as a 'conditional offer'. 'Minimum level of acceptance' implies the minimum number of shares which the acquirer desires under the said conditional offer. If the number of shares validly tendered in the conditional offer are less than the minimum level of acceptance stipulated by the acquirer, then the acquirer is not bound to accept any shares under the offer. In a conditional offer, if the minimum level of acceptance is not reached, the acquirer shall not acquire any shares in the target company under the open offer or the Share Purchase Agreement which has triggered the open offer. Thus, the statement is correct.