In defending against a hostile takeover, the strategy that involves the target firm finding a more suitable acquirer and prompting it to compete with the initial hostile acquirer to take over the firm is called the strategy.
A) greenmail
B) white knight
C) poison pill
D) golden parachute

Question

Quizplus · Accepted Answer

The strategy described is known as the "white knight" strategy, where the target company seeks out a more favorable acquirer to outbid the hostile acquirer. Greenmail involves buying back the hostile acquirer's shares at a premium, poison pill involves implementing a provision that makes the target firm less attractive to the hostile acquirer, and golden parachute involves offering lucrative compensation packages to top executives if the company is acquired.

In Defending Against a Hostile Takeover, the Strategy That Involves