Firms use defensive tactics to fight off undesired mergers. These tactics include which of the following?

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Quizplus · Accepted Answer

Firms typically use a combination of defensive tactics to fight off undesired mergers. These include developing poison pills, getting white knights to bid for the firm, and repurchasing their own stock. Developing poison pills involves creating provisions that make an acquisition undesirable or difficult, such as issuing new shares that dilute the value of existing shares. Getting white knights to bid for the firm refers to finding alternative bidders who are more favorable to management's interests. Repurchasing their own stock can make the firm less attractive to potential acquirers by reducing the number of outstanding shares available for purchase.

Firms Use Defensive Tactics to Fight Off Undesired Mergers