If P&G's acquisition of Wella had been delayed because it had to overcome a stipulation in Wella's corporate bylaws requiring that more than 50% of Wella's board of directors had to approve the takeover, this would be an example of
A) the Pac Man defense.
B) a poison pill.
C) greenmail.
D) a shark repellent.

Question

Quizplus · Accepted Answer

This is an example of a shark repellent, which is a defensive strategy used by a target company to make itself unattractive to potential acquirers by implementing measures that make a hostile takeover more difficult or expensive. In this case, Wella's corporate bylaws requiring board approval would make it harder for P&G to complete the acquisition without cooperation from a majority of Wella's directors.

If P&G's Acquisition of Wella Had Been Delayed Because It