When Reese Group of Hotels (RGH) was on the verge of facing a hostile takeover bid by rivals Blossoms Group (which held a 14.98 percent stake in RGH), Rely's came forward and bought a 14.12 percent stake in RGH, thereby relieving RGH from the hostile takeover risk. This kind of tender offer defense is called:

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This situation is an example of a white knight defense, where a friendly third party invests in the target company to prevent a hostile takeover by a rival company. Greenmail refers to a tactic where a hostile acquirer buys a large stake in the target company and then threatens to sell it back at a profit if the target company does not agree to the takeover. The lock-up option is a provision in a merger agreement that prevents a target company from seeking out other potential buyers. Pac-Man defense is a rare tactic where the target company attempts to acquire the hostile acquirer to fend off the takeover.

When Reese Group of Hotels (RGH) Was on the Verge