A takeover defense wherein preferred stock in the merged firm is offered to shareholders at a highly attractive rate of exchange is called

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This is a classic example of a poison pill defense. By offering preferred stock at an attractive rate, the acquirer's cost for the merger increases substantially, making it less desirable to pursue the takeover. Greenmail is the practice of paying a premium to a hostile bidder in order to convince them to withdraw their bid. A standstill agreement is an agreement between the target firm and the acquirer to limit the acquirer's stake in the target company. Crossing the palm with silver refers to bribing someone to gain their favor or cooperation.

A Takeover Defense Wherein Preferred Stock in the Merged Firm