Company A makes an offer to purchase all of the shares of Company B from Company B's shareholders. The board of directors of B Company does not feel that the offer is adequate and seeks out another purchaser who might offer more for the shares. This defence to the takeover is referred to as:
A) poison pill.
B) pac-man defence.
C) white knight.
D) selling the crown jewels.

Question

Quizplus · Accepted Answer

The "white knight" defense involves Company B's board seeking out a more favorable purchaser to counter the takeover attempt by Company A.

Company a Makes an Offer to Purchase All of the Shares