Do index funds sell their stocks when the offer is very good?

Question

A majority owners of a company did some actions that the Financial and Capital Market Commission found sketchy. They ended up with an agreement: owners had to make a good offer (more than +50% compared to the price at the moment) to buy all the shares they didn't yet own.
Initially they had around 50% shares, after the mandatory redemption they had almost 93%.
Would most index funds sell their shares to this offer? Or they ignore any events and their shares would be among the 7% that didn't get sold?

RonJohn · Accepted Answer

It depends.

Actively managed funds which aren't tasked with following a specific index would certainly sell their shares in a situation like this.

Passive funds which track an index would, naturally, follow what the index does.

Do index funds sell their stocks when the offer is very good?

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