In defending against a hostile takeover, the strategy that involves the target firm finding a more suitable acquirer and prompting it to compete with the initial hostile acquirer to take over the firm is called the ________ strategy.
A) poison pill
B) white knight
C) golden parachute
D) greenmail

Question

Quizplus · Accepted Answer

The white knight strategy involves finding a more suitable acquirer to compete with the initial hostile acquirer. This is a way to defend against the hostile takeover and find a more favorable outcome for the target firm. Poison pill, golden parachute, and greenmail are other defensive strategies, but they do not involve finding a more suitable acquirer.

In Defending Against a Hostile Takeover, the Strategy That Involves