Firms using ________ fend off an acquisition by taking over the firm or firms bidding for them.
A) shark repellents
B) a crown jewel sale
C) the Pac Man defense
D) a golden parachute

Question

Quizplus · Accepted Answer

The Pac Man defense is a defensive strategy where the target firm turns around and tries to take over the bidding firm. This can make the acquisition too expensive or unattractive for the bidding firm and fend off the acquisition. Sharks repellents and golden parachutes are also defensive strategies but do not involve taking over the bidding firm. A crown jewel sale is a defensive strategy where the target firm sells off its most valuable assets to make itself less attractive to the bidding firm, but this is not the same as the Pac Man defense.

Firms Using ________ Fend Off an Acquisition by Taking Over