A financial device designed to make unfriendly takeover attempts financially unappealing, if not impossible, is called (a):
A) Golden parachute.
B) Standstill.
C) Greenmail.
D) Poison pill.
E) White knight.

Question

Quizplus · Accepted Answer

A poison pill is a strategy used by companies to deter or discourage hostile takeovers by making the company less attractive to the acquirer. This can be done through various means, such as allowing existing shareholders to buy more shares at a discount, which would dilute the ownership interest of a new, hostile party trying to take over.

A Financial Device Designed to Make Unfriendly Takeover Attempts Financially