If you were the CEO of a target firm, what strategy would you recommend to convince institutional shareholders to support your position in a proxy battle with the bidding firm?

Question

Quizplus · Accepted Answer

The Answer is The CEO could share additional details of the firm's strategic plan with the largest institutional investors in an effort to convince them that the plan will deliver superior value over the purchase price offered by the suitor. If the firm is confident that its plan is superior to the bidder's proposal, the CEO and board could agree to put the firm up for auction if it cannot meet or exceed certain quantifiable objectives within a specific time period (e.g., 12-24 months). The CEO and board could further commit that the auction process would be managed by a committee of outside board members who would work closely with an advisory committee consisting of the target firm's top 10 to 15 institutional investors.

If You Were the CEO of a Target Firm, What