CISI Regulatory Practice Exam 2025 - Free Regulatory Practice Questions and Study Guide

An offer becomes unconditional when the predator gains more than 50% of the shares that are the subject of the offer. This is typically a critical threshold for making an offer unconditional in takeover situations, signifying that the predator has acquired a controlling interest in the company being targeted.

Reaching over 50% ownership empowers the acquiring company to exert significant influence over decisions, thereby fulfilling a fundamental requirement of many takeover offers. Once this control is established, the offer moves out of the conditional phase, allowing the predator to proceed with the acquisition without any further substantial uncertainties related to shareholder approval.

Other options suggest different scenarios that contribute to the process of an offer but do not denote when the offer officially becomes unconditional. For instance, a vote in favor by shareholders indicates support but isn't the decisive factor for unconditionality. Regulatory clearances are important for compliance but do not alone dictate the acceptance status of an offer. Lastly, a specific period set by the offeror may be a timeframe for responses, but it does not establish unconditionality directly. Gaining over 50% is the definitive moment that transitions the offer into an unconditional stage.