Which of the following are possible defenses that a target firm can use against an unfriendly acquiring firm? The target firm may:
I.Sell attractive assets
II.Issue additional voting shares to dilute voting power
III.Assume a heavy debt burden
A)III only
B)I and II
C)II and III
D)I, II, and III

Question

Quizplus · Accepted Answer

All three options are possible defenses against an unfriendly acquisition. Selling attractive assets can make the company less appealing to the acquirer. Issuing additional voting shares can dilute the voting power of the acquirer, making it harder to take control. Assuming a heavy debt burden can make the financials less attractive, deterring the acquisition.

Which of the Following Are Possible Defenses That a Target