The defense tactic that involves purchasing shares held by the would-be acquiring company at a price substantially in excess of their fair value is called:
A) poison pill.
B) pac-man defense.
C) greenmail.
D) white knight.

Question

Quizplus · Accepted Answer

Greenmail is a strategy used by a target company to prevent a hostile takeover by purchasing the shares held by the would-be acquiring company at a premium. This effectively buys off the potential acquirer.

The Defense Tactic That Involves Purchasing Shares Held by the Would-Be