One anti-takeover measure is the ____, where the target company makes a takeover bid for the stock of the bidder.
A) poison put
B) black knight defense
C) pacman defense
D) shark repellent

Question

Quizplus · Accepted Answer

The pacman defense is the anti-takeover measure where the target company makes a takeover bid for the stock of the bidder. This strategy makes the target company appear aggressive and can deter the bidder from continuing the takeover attempt. The poison put is a debt instrument with a clause that allows the bondholders to sell their bonds back to the company at a premium if a takeover occurs, the black knight defense involves seeking out and encouraging an alternative bidder to make a higher offer, and shark repellent refers to any defensive tactic that a company adopts to fend off an unwanted takeover bid. Out of these options, only the pacman defense matches the given description.

One Anti-Takeover Measure Is the ____, Where the Target Company