Which of the following actions can help managers defend against a hostile takeover?
A) establishing a poison pill provision
B) granting lucrative golden parachutes to senior managers
C) establishing a super-majority provision in the company's bylaws to raise the percentage of the board of directors that must approve an acquisition from 50% to 75%
D) establishing a poison pill provision, granting lucrative golden parachutes to senior managers, and establishing a super-majority provision in the company's bylaws to raise the percentage of the board of directors that must approve an acquisition from 50% to 75%

Question

Quizplus · Accepted Answer

All of the actions listed can help managers defend against a hostile takeover. Establishing a poison pill provision allows the company to dilute the value of its stock, making it less attractive to potential acquirers. Granting lucrative golden parachutes to senior managers makes it more expensive for a potential acquirer to replace the company's management team. Establishing a super-majority provision in the company's bylaws makes it more difficult for an acquirer to gain control of the company's board of directors and approve an acquisition. Combined, these actions can make a hostile takeover much more difficult and expensive to carry out.

Which of the Following Actions Can Help Managers Defend Against