The antitakeover tactic,________,is when a firm offers to buy shares of their stock from a company (or individual)planning to acquire their firm at a higher price than the unfriendly company paid for it.
A) golden parachute
B) poison pill
C) greenmail
D) scorched earth

Question

Quizplus · Accepted Answer

Greenmail is an effort by the target firm to prevent an impending takeover. When a hostile firm buys a large block of outstanding target company stock and the target company management feels that a tender offer is impending, they offer to buy the stock back from the hostile company at a higher price than the unfriendly company paid for it.

The Antitakeover Tactic,________,is When a Firm Offers to Buy Shares