A targeted stock repurchase of the ﬁrm directed at a potential bidder to discourage an unfriendly takeover attempt is called (a):
A) Golden parachute.
B) Standstill.
C) Greenmail.
D) Poison pill.
E) White knight.

Question

Quizplus · Accepted Answer

Greenmail is a strategy where a company buys back its own shares at a premium from a potential hostile bidder to prevent a takeover.

A Targeted Stock Repurchase of the ﬁRm Directed at a Potential