In defending against a hostile takeover, the strategy that involves the firm repurchasing through negotiation a large block of stock at a premium from one or more shareholders in order to end those shareholders' hostile takeover attempt is known as the strategy.
A) golden parachute
B) poison pill
C) white knight
D) greenmail

Question

Quizplus · Accepted Answer

Greenmail refers to the strategy where a company buys back its shares at a premium from a potential acquirer to prevent a hostile takeover. This is done through negotiation directly with the shareholders who are attempting the takeover.

In Defending Against a Hostile Takeover, the Strategy That Involves