Large-scale efforts to make a firm less appealing in the midst of a potential merger are known as:
A) proxy fights.
B) leveraged buyouts.
C) shark attractants.
D) poison pills.

Question

Quizplus · Accepted Answer

Large-scale efforts to make a firm less appealing in the midst of a potential merger are known as poison pills. Poison pills are designed to make the target company less attractive to the acquiring company, and they can take the form of various measures such as issuing new securities, diluting existing shares, or implementing severe anti-takeover provisions. The purpose of poison pills is to discourage hostile takeovers and to protect the target company's shareholders by giving them more leverage in negotiations.

Large-Scale Efforts to Make a Firm Less Appealing in the Midst