Albama Associates is a consulting firm owned by a few entrepreneurs.Rogo Consulting,a large consulting firm,tries to buy shares from some of the shareholders of Albama to obtain control of the company without making a formal acquisition proposal with the management.Albama's management invites a third party to acquire the company to prevent a hostile takeover by Rogo Consulting.This approach used by Albama to prevent hostile takeover is an example of a ________.
A) white knight tactic
B) counteroffer
C) proxy fight
D) direct offer
E) poison pill defense

Question

Quizplus · Accepted Answer

A)With the white knight tactic, a third company is invited to acquire a company that is in danger of being swallowed up in a hostile takeover. The given situation exemplifies a white knight tactic.
B)With the white knight tactic, a third company is invited to acquire a company that is in danger of being swallowed up in a hostile takeover. The given situation exemplifies a white knight tactic.
C)With the white knight tactic, a third company is invited to acquire a company that is in danger of being swallowed up in a hostile takeover. The given situation exemplifies a white knight tactic.
D)With the white knight tactic, a third company is invited to acquire a company that is in danger of being swallowed up in a hostile takeover. The given situation exemplifies a white knight tactic.
E)With the white knight tactic, a third company is invited to acquire a company that is in danger of being swallowed up in a hostile takeover. The given situation exemplifies a white knight tactic.

Albama Associates Is a Consulting Firm Owned by a Few