Which of the following defensive tactics is not appropriate before a takeover attempt is underway?
A)Poison pills
B)Staggered election of directors
C)Golden parachutes
D)Greenmail

Question

Quizplus · Accepted Answer

Greenmail is a defensive tactic used during a takeover attempt where the target company repurchases the hostile bidder's shares at a premium above the market price in order to prevent a takeover. This tactic is not appropriate before a takeover attempt is underway because there is no hostile bidder to repurchase shares from. Poison pills, staggered election of directors, and golden parachutes are all pre-emptive defensive tactics that can be implemented before a takeover attempt to deter hostile bidders.

Which of the Following Defensive Tactics Is Not Appropriate Before