Which one of the following defensive tactics is designed to prevent a "two-tier" takeover offer?
A) Bear hug
B) Poison put
C) Shark repellent
D) Dual class capitalization
E) Fair price provision

Question

Quizplus · Accepted Answer

A "two-tier" takeover offer is a strategy used by a potential acquirer to offer a higher price for a portion of the target company's shares and a lower price for the remaining shares. The fair price provision is designed to protect shareholders by ensuring that any partial tender offer must be made at a fair price to all shareholders, thus preventing a two-tier takeover offer.

Which One of the Following Defensive Tactics Is Designed to Prevent