__________ occurs when a raider acquires stock in a target company and then threatens to comhence a hostile takeover unless the stock is repurchased by the target at a premium over the market price.
A) Revlon mode
B) The Van Gorkom test
C) The Unocal Proportionality test
D) Greenmail

Question

Quizplus · Accepted Answer

This scenario describes the practice of greenmail, which involves a raider buying stock in a target company and then using the threat of a hostile takeover to pressure the target to repurchase the stock at a premium, effectively paying off the raider to avoid the takeover. The other options listed are legal tests or requirements related to mergers and acquisitions, but do not directly apply to this particular strategy.

__________ Occurs When a Raider Acquires Stock in a Target