Which of the following takeover defenses is evidenced by the target buying back the shark's stock at a premium price?
A)poison pill
B)blank check
C)Supermajority voting
D)greenmail

Question

Quizplus · Accepted Answer

Greenmail is a takeover defense strategy in which the target company buys back its shares at a premium price from the hostile acquirer, known as the "shark," to prevent a takeover. This strategy aims to incentivize the shark to drop the takeover bid and sell the shares back to the target company. Therefore, the answer is option D, Greenmail.

Which of the Following Takeover Defenses Is Evidenced by the Target