In defending against a hostile takeover, the strategy that involves the target firm creating securities that give their holders certain rights that become effective when a takeover is attempted is called the strategy.
A) golden parachute
B) shark repellent
C) poison pill
D) greenmail

Question

Quizplus · Accepted Answer

The strategy of creating securities that give their holders certain rights that become effective when a takeover is attempted is known as a poison pill. This could make the target firm less appealing to the acquirer and make the acquisition less financially attractive. A golden parachute involves providing certain executives with lucrative severance packages in the event of a takeover, while shark repellent refers to measures taken by a company to prevent a takeover attempt altogether. Greenmail involves the target company paying the acquirer a premium to stop them from attempting the takeover.

In Defending Against a Hostile Takeover, the Strategy That Involves